Global suppliers of retail majors like IKEA are being encouraged to set up base in India under the government’s ‘Make in India’ campaign.
“As part of India’s outreach to potential investors, the Indian embassy has formally met the top management of IKEA in Poland. The meeting explored ways for IKEA and its suppliers to make in India. In the context of IKEA’s local content requirements in India, the Department of Industry Policy and Promotion (DIPP) has suggested their suppliers could manufacture major product lines like furniture and kitchen equivalents in India. As a follow-up, IKEA had meetings with DIPP to take it forward,” an official said.
DIPP secretary Amitabh Kant, who is currently with a business delegation in Poland, is also likely to meet the company management and other potential investors to highlight possible opportunities.
“We now propose to have a seminar in Warsaw with IKEA suppliers to take these proposals forward. Meanwhile, IKEA continues to engage with DIPP on their India plans,”the official added.
The Swedish company, seeking to take benefits from the ‘Make in India’ campaign, has been working on fresh tie-ups with small and medium enterprises (SMEs), which will help it double the merchandise it sources in India by 2020.
IKEA, which enjoys the benefit of being one of the first companies in India to be allowed to bring in 100% foreign direct investment in the single brand retail business, has been sourcing from India for the last 27 years for its stores around the world. At present, IKEA Group sources about 315 million euros worth of products in India. Ikea has 48 suppliers in India with 45,000 direct employees and about 400,000 people in its extended supply chain.
