Ikea said it is in talks with several state governments including Telangana, Karnataka, Maharashtra for sourcing wood for furniture
Swedish furniture major Ikea confirmed that it is in talks with several state governments in India for sourcing wood for furniture even as it is setting up a large facility in Pune for stocking goods. The states include Telangana, Karnataka, Maharashtra, and north eastern states.
“Sourcing the right kind of raw material is a biggest challenge for furniture in India. Wood procurement is a bit challenging. We are working with the state governments of Telangana, Karnataka, Maharashtra and in Northeast to see how they can help us to find the right wood,” deputy country manager of Ikea India, Patrik Antoni, said recently in a press conference.
As per the commitment the firm has made to the Centre, by 2022 as much as 30% of their products they sell in India will be sourced locally. “We are setting up large facility in Pune which will be our distribution centre. By November the warehouse in Pune will be ready. It is a rented facility. We will have a 10,000 sq. m. facility where we will stock the products,” Mr. Antoni said.
Ikea is currently exporting goods worth euro 325 million from India, of which 70% constitutes textiles. On the progress of Hyderabad store, Antoni said the total investment on the store would be Rs. 1,000 crore including land cost.
The Swedish company said that by the next year, it will recruit about 800 people for the store, including 120 for the 1,000-seater restaurant that is coming up along with the Hyderabad store – the first outlet of Ikea in India. “By the end of September, we will have 100 co-workers by the end of December, we will be around 300 to 400 and then within three months of the store opening we will go up to 800. Of this 100 will be at the management level,” Mr. Antoni added.
As per the commitment Ikea has made to the Centre, by 2022 as much as 30% of their products they sell in India will be sourced locally.
