India: Ikea looking for wood sources

Swedish furniture giant, Ikea, has revealed that it is in talks with numerous Indian state governments in order to source wood for furniture. The states include Karnataka, Maharashtra, Telangana, and states in northeast India. Currently, the company is building a facility in Pune, India.

“Today, raw materials are the biggest challenge facing furniture in India. Wood procurement is a bit of a challenge,” Patrik Antoni, the deputy country manager of Ikea India, said. “We are working with the state governments of Telangana, Karnataka, Maharashtra, and in the northeast to see how the government can help to find wood.”

Ikea has also declared that by 2022, up to 30 per cent of the products they will be selling in India will be from materials sourced locally. Presently, Ikea exports an estimated €325 million (US$387.3 million) worth of products of India, of which textiles make up 70 per cent.

“We are setting up a large facility in Pune which will be our distribution centre,” Antoni continued. “By November, the warehouse in Pune will be ready.”

 

Source: City Today