Hafele's Strategic Expansion Plan: Sourcing 50% from India

German interior solutions provider Hafele aims to boost its sourcing from India to 50% by gradually developing a supplier base. The company plans to set up a manufacturing unit in India for local and global distribution while tackling policy challenges in the Indian furniture industry.

German interior solutions giant Hafele is gearing up to enhance its sourcing capabilities from India, with a target set to reach 50% in the mid-term. This strategic move aims to gradually build a robust supplier base in the region, as stated by Frank Schloeder, Managing Director for South Asia.

The company is also considering establishing a manufacturing unit to produce some of the items it currently makes in Europe. The investment for this initiative is expected to be significant, totaling hundreds of crores of rupees. Hafele's strategy involves developing a supplier park with future plans for exporting from India.

Despite its ambitious growth plans, Hafele faces challenges due to inadequate policy frameworks for the furniture industry. Specifically, the quality control order for hinges set to come into effect on January 1, 2025, poses a significant hurdle. Nevertheless, the company is confident about its potential for exponential growth in India.

(With inputs from agencies.)