IKEA
TO OUTSOURCE FRON INDIAN EXPORTERS
Here's a huge shopping
list that's sure to send Indian exporters into champagne mode.
Even as the imminent
phaseout of textile export quotas at the end of 2004 is creating
a major buzz, Indian suppliers of home furnishings and carpets
are in for a huge bonanza from Swedish retail giant Ikea.
The multinational,
with a turnover of nearly 13 billion euro, has decided to
source printed quilt covers and carpets from India in a big
way.
A large order which
is on offer now includes 14 m sets of printed quilt covers
and 4.5 m machine-made carpets. Ikea is also looking at India
with a massive order of nearly 20 million plastic crates/boxes,
according to Mr Peter Wiesbeck, the MNC's deputy regional
manager for south Asia.
The Swedish giant
is also planning to source metal products from India in a
big way and expand its sourcing from India to 500 m euro as
compared to the current level of 250 m euro within the next
three or four years.
This is the first
time Ikea is planning to sources printed quilt covers from
India. India has the potential to compete with rival countries
to provide a range of home textiles at competitive prices,
Mr Wiesbeck told exporters at a meeting organised by the Federation
of Indian Export Organisations (FIEO) here today. In the case
of machine-made carpets, for example, he sees now reason why
India cannot compete with China.
The Swedish company
expects that sourcing from India will grow at 30% each year
in the near term. The Ikea official said nearly 100 containers
of goods sourced from India are exported every week. While
bulk of the supplies go to north American and Europe, nearly
10% of the goods sourced from India reach Sweden.
"We are looking
at India as a key source market. While a number of exporters
from various countries compete for orders from Ikea, it is
possible for suppliers from one country to win all the orders
for a particular product if the quality and price are the
best," Mr Wiesbeck said
The Swedish multinational
also insists on social audit which bars use of child labour
and bonded labour in the manufacture of products supplied
to Ikea. India now occupies the eight position among the 55
countries which supply products to Ikea.
The Ikea official
said India could be the main player for supply of printed
quilt covers, which is part of the company's 'complete bedroom'
range. India already supplies other types of quit covers to
Ikea. In the case of metal products, the Swedish MNC is looking
at sourcing of curtain rings, metal tubes and lighting accessories
from India. Why should India not process metal for Ikea, Mr
Wiesbeck asked.
