Ikea to double India sourcing by 2020

The global home furnishings major Ikea, which currently sources $370 million worth of goods from India annually, aims at doubling it by 2020.

"We are aiming to double our sourcing from here..to make more in India, not just for India but for Ikea worldwide," Ikea South Asia head of purchasing Sandeep Sanan said in the statement.

The company looks for new suppliers in existing home furnishing categories like textiles and rugs, as well as in new categories like furniture, mattresses, metals, plastics, and lighting, the company said in a statement, adding it could also look at sourcing sustainable materials like bamboos, jute and acacia.

The company held its first 'Make more in India' seminar showcasing new business opportunities created when the company aims at doubling its local sourcing from here, the release added.

"As we are planning to open retail stores we look at how we will holistically grow our business here. This will include knowledge transfers and investment in skill development as we increase employment in both supply chain and retail," Ikea India chief executive Juvencio Maeztu said.

Ikea currently has 48 suppliers in the country with about 45,000 direct employees and about 4,00,000 people in the extended supply chain. The Ikea group is the first major single brand retailer to get FDI approval and plans to open several stores in Delhi/NCR, Hyderabad, Karnataka and Maharashtra.