Hafele Aims for 50% Sourcing and Expands Supplier Base in India

27 Dec 2024 CW Team

Schloeder further explained that the mid-term target was to increase local sourcing from 30 per cent to over 50 per cent, and they would assess how things evolve thereafter.

He was responding to a query about Hafele's approach to boosting local sourcing.

So far, 90 per cent of Hafele's products were imported from various regions, with China being the largest market, though not the only one. Schloeder mentioned that Hafele was less exposed to China than some other companies.

Explaining the reasons behind the company’s reliance on imports, he noted that Hafele is not a typical manufacturing company, as it manufactures less than 10 per cent of its products worldwide.

Schloeder highlighted that the company’s portfolio is highly diversified, including home appliances, partitions, furniture, fittings, and faucets, among others. He added that Hafele operates like a platform to some extent, working with a vast network of suppliers across the globe.

When asked if the company was considering setting up its own manufacturing unit in India, Schloeder confirmed that, similar to their global practice of producing about 10 per cent of their needs in-house, Hafele plans to establish its own facility in India. This will involve manufacturing certain products typically produced in Europe.

The initial focus will be on producing for the Indian market, but with the long-term goal of expanding to serve global markets.

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