Why IKEA is raising local sourcing in India
What's the story
Swedish home decor giant IKEA has announced plans to increase its local sourcing in India from the current 30% to 50%.
The move is part of a broader strategy to boost global operations and create more jobs across the supply chain.
Christina Niemela Strom, Head of Sustainability for Supply at Inter IKEA Group, confirmed this development during an interview with PTI.
Global sourcing
India among top 10 sourcing countries
Strom revealed that India is one of the top 10 countries from which IKEA sources products.
The company sources goods worth around €400 million ($440 million) annually for its global retail operations.
At present, the sourcing basket includes textiles, plastics, and metals but plans to expand it with more categories like sofas, mattresses, and storage furniture.
Market focus
Long-standing relationship with India
IKEA has been sourcing from India for over five decades and opened its first retail store in Hyderabad in 2018.
Since then, the company has expanded to Navi Mumbai and Bengaluru, with plans for further expansion in locations such as Delhi NCR.
Strom emphasized that "India will remain important for us," highlighting the company's long-term commitment to the country.
Sustainability efforts
IKEA's sustainable sourcing practices
IKEA works with over 110,000 Indian farmers for sustainable cotton sourcing, helping them reduce pesticide, fertilizer, and water usage.
Strom said these practices not only improve yields but also provide better products without driving costs up.
The company employs around 100,000 people at direct suppliers in India and around 270,000 at tier-2 suppliers through its supply business.