Furniture fittings and interior solutions maker Häfele, aims to source half of its global sales from the country within two years. This marks a rise from under 10% last December.
At the heart of this transformation is Häfele’s plan to turn India into a global supply hub, leveraging cost advantages, scale, and growing demand for localized, high-quality products. Frank Schloeder, Managing Director of Häfele South Asia, calls it “a massive transformation from where we started.”
The company’s strategy is reinforced by a Memorandum of Understanding signed in May 2025 with India’s Department for Promotion of Industry and Internal Trade (DPIIT). Through this partnership, Häfele will invest in product innovation, local sourcing, and entrepreneurship, while DPIIT will connect the company to India’s startup ecosystem via Startup India.
Häfele, based in Germany, has already invested over $2.5 million in an Indian appliance startup and placed significant purchase orders with MSME suppliers of hardware and fittings. To ensure global standards, Häfele is embedding quality teams on the ground and conducting rigorous audits. Schloeder emphasizes that the move is not just about cost efficiency but about building long-term supply resilience.
India has now become Häfele’s third-largest market globally, contributing nearly $156 million in revenue. The domestic market remains largely unorganized, with modular kitchens under 30% penetration, but demand for premium fittings and appliances is steadily rising across urban and semi-urban areas.
To cement its presence, Häfele is setting up its own manufacturing plant in India, with land acquisition underway and interim production expected to begin this year. Over the next 3 to 5 years, the company plans to invest several hundred million USD across its factory, startup partnerships, and supplier development.
In Schloeder’s words, “This is not just about Make in India, it’s about building India for the world.”
Last updated: December 26th, 2025
