IKEA has announced plans to significantly increase its sourcing from India, aiming to raise the share of locally sourced products from 30% to 50% for its Indian operations. This move is part of the company's broader strategy to strengthen its global supply chain, reduce costs, and support job creation within the Indian economy.
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India is already among IKEA's top 10 sourcing countries, contributing around €400 million annually to the brand's global retail operations. The company has a longstanding relationship with Indian suppliers, spanning over five decades, and now plans to expand its India-based product range to include sofas, mattresses, and storage furniture.
Additionally, IKEA collaborates with approximately 110,000 Indian farmers to sustainably source cotton, focusing on reducing the use of pesticides, fertilizers, and water.
Christina Niemelä Ström, Chief Sustainability Officer for the Inter IKEA Group, stated that India is a "focus market" for the brand. The increased sourcing is expected to not only support global operations but also create more jobs in India's supply chain.
Source: ET Retail