Taking forward its commitment to the Indian market, IKEA, the global home furnishings leader, announced a new initiative - ‘Make More in India’. The initiative is aimed at potential suppliers and to expand IKEA’s supplier base as well as the categories of home furnishing products sourced from India.
IKEA currently sources for EUR 315 million and plans to double the sourcing by 2020.
Speaking about the new initiative, Sandeep Sanan, Head of Sourcing, IKEA South Asia, said, “We believe there is tremendous potential in India. We are looking for new suppliers who share our vision and values, are willing to grow with us and become world class suppliers. We believe that many suppliers will come from other segments that are looking to diversify their business. IKEA today has 48 suppliers in India with 45,000 direct employees and about 400,000 people in its extended supply chain.”
Sandeep added, “IKEA is committed to responsible sourcing, and our history of developing successful supplier relationships in India means that IKEA is well positioned, not just to ‘Make in India’ for India, but to ‘Make More in India’ for IKEA worldwide. This gives the current and future new suppliers in India a much bigger market to aspire for. Our suppliers are our strategic long term partners, and we are happy to share knowledge and technologies as we want them to grow with us.”
IKEA’s ‘Make More in India’ is a major initiative to speed up the process of finding the right suppliers who will partner IKEA to grow business in India. IKEA sourcing plans resonate with the Indian Prime Minister’s Make in India agenda. “The IKEA Group is positive to all government initiatives that simplify and make it easier to produce in and export products from India,” Sandeep said.
To identify potential Indian Industry Groups who could be interested to join IKEA in the ‘Make More in India’ initiative, IKEA is in contact with various government export associations and industry organizations.
Sandeep Sanan further said, “These groups could already be active in existing categories we sell or are willing to diversify into new categories and even set up greenfield factories to supply both in India and globally for IKEA.”
IKEA works closely with suppliers in setting up efficient and sustainable production processes to create affordable home furnishing products with good design and quality.
Together with its suppliers, it supports innovation and entrepreneurship and invests in modern manufacturing technology that helps create globally competitive capacities and set up greenfield factories.