IKEA to source 35% products locally to encourage entrepreneurs

HYDERABAD:Swedish furnishing giant IKEA, that is setting shop in Hyderabad, has decided to purchase 35 per cent of its products from local artisans. Also, if local artisans make products with specifications that match international standards, IKEA will purchase them and make them available in the international market through its 420 showrooms spread across the world. 

According to sources in the industries department, IKEA presented this plan to them in a bid to encourage local entrepreneurs. “Telangana is an important State for IKEA which is looking to expand its source base. Their purchasing team is looking for new suppliers of wood, bamboo and natural fibre,” industries department officials said.  

So far, the global giant has signed up one supplier in the State — Shree Malani Foams, who will make mattresses for the local market and for exports to the middle-eastern countries. One of IKEA’s food suppliers has also signed up with some women farmers to source vegetables for the IKEA restaurant inside the store.

Government officials believe the move will open up new market places for local carpenters. Sources say IKEA has already partnered with app-based home services provider Urban Clap. Their network of carpenters in Hyderabad will be trained in IKEA furniture assembly.  In the second phase, IKEA is planning a 45-day training for women from families of carpenters in assembling furniture.