Haworth to set up new factory in Tamil Nadu, to invest $8-10 million

The company's second factory in India will produce furniture for domestic market as well as for exports to West Asia and Southeast Asia

Global office furniture maker Haworth is setting up a new manufacturing plant in Chennai with an investment of $8 to $10 million, including the price of land. The new facility, which will be its second plant in the country, will be located near its first factory at Sriperumbudur. It will be double the size of its current plant, which spans 7,000 square meters.  

Talking to Business Standard on Friday, the company's president Henning Figge said that the factory would produce furniture for the domestic market as well as for exports to West Asia and Southeast Asia. Its current facility caters only to domestic demand. 

"The majority of the production from both the plants combined will still go to the Indian market," he added. 

The new facility is expected to start production in the next two years. The company currently employs around 250 people in India, and with the upcoming factory, they are aiming to double it. 

In the Asia-Pacific region, Haworth currently manufactures in China and India. It deals in products that mainly fall under the premium category in India. According to Figge, the size of the market is around $300 million in India. 

"The good thing about this segment is that it is growing faster than the overall furniture industry," he said.

"The higher growth is driven primarily by two factors. One, the rising demand and importance of offices. Second, the war for talent where companies are competing for better employees and employees are demanding better pay and work conditions."

Interestingly, two of the highest-priced office chairs of the company, Zody and Fern, are also the ones with the highest demand in India. 

Haworth has showrooms across five Indian cities: Bengaluru, Chennai, Delhi, Hyderabad and Mumbai. It is also aiming to expand to other markets, including Ahmedabad, Indore, Kolkata and Guwahati.