Furnishings major Ikea to double sourcing from India

Global home furnishings major Ikea is scouting for partners to expand supplier base across the country and double its sourcing from India by 2020.

The Swedish multinational, which sells furniture, appliances and home accessories, currently sources home furnishing products from India valued at euro 315 million ($390 million/Rs.2,422 crore).

"Our new initiative 'Make More in India' is aimed at expanding supplier base to double our sourcing home furnishing products valued at euro 630 million ($780 million/Rs.4,822 crore) by 2020," Ikea South Asia head Sandeep Sanan said in a statement here.

With 48 suppliers, the company has 45,000 direct employees and 400,000 people in its extended supply chain across the country.

"We are looking for new suppliers who share our vision and values, willing to grow with us and become world class suppliers. We believe there is tremendous potential in India for us," Sanan said.

The company's Indian arm will conduct seminars in Mumbai Jan 16 and in Bengaluru Jan 23 to enroll new suppliers for sourcing more textiles and rugs, home furnishings like furniture, mattresses and sustainable materials like bamboo and acacia.

"We are also looking for new suppliers to source products in metal, plastics and lighting," Sanan said.

"As we are committed to source more from India for our worldwide operations, local suppliers can aspire for much bigger markets as our strategic long-term partners," he said.

The company works with suppliers in setting up efficient and sustainable production processes to create affordable home furnishing products with good design and quality.

"We support innovation and entrepreneurship and are open to invest in modern manufacturing technology for creating globally competitive capacities and set up greenfield factories," Sanan added.

Being the first major single brand retailer to get foreign direct investment (FDI) approval, the company plans to open stores in Delhi and the national capital region (NCR), Hyderabad, Bengaluru and Mumbai.

With 361 stores in 45 countries the world over, the 74-year-old group employs 164,000 co-workers and reported euro 30 billion ($37 billion) in calendar year 2013.