Can India’s furniture industry emulate China’s manufacturing efficiency?
As India emerges as one of the world's fastest-growing economies, it’s finding itself at a critical juncture in manufacturing: either embrace large-scale automation or risk falling behind on the global stage. The country’s transition to a highly efficient, standardised furniture industry hinges on a lesson that could potentially be learned from its closest Asian competitor, China. As Andre Eckholt, managing director of Hettich Group, explains, China’s success in global manufacturing stems from its deep-rooted focus on automation and specialised industrial hubs. “China created furniture hubs, heavily investing to harness economies of scale,” he says. Despite the relative affordability of labour, China committed early to automation, safeguarding productivity and quality from the constraints of a labour-intensive model. The precision with which China has scaled production through automation is 'very efficient, high-productivity' and a model that India should consider as it strengthens its global positioning.
A recent World Bank report projects India’s manufacturing sector could double its share in global manufacturing output by 2030 if it invests in efficient, automated processes. India, while rapidly growing in the furniture and hardware sectors, is only beginning to automate, with an industry still largely dominated by small-scale, unorganised operators, says Eckholt. Nearly 70% of the market remains unstructured, composed primarily of individual carpenters producing bespoke items. While this caters to the unique preferences of local consumers, the lack of standardisation and automation limits India's ability to compete globally. “In terms of competitiveness on a global scale, you need to standardise, you need to be able to automise, only then does ‘made in India’ become attractive for global distribution,” says Eckholt while adding that India is just at the beginning in the transformation from manual to automated.
Moreover, India's high-growth market presents a critical opportunity for companies to pivot from manual labour towards automation, especially as global players increasingly turn to India as an alternative manufacturing base. Eckholt highlights the potential in modular furniture, where automation and standardisation could revolutionise production. The demand for modular kitchens and wardrobes is particularly robust, driven by urbanisation and the housing boom. Although trade has been dominant from the beginning and has the biggest revenue share for the Germany-based company, the fastest growing is the OEM channel, which is about modular products.
Comparatively, Eckholt sees India’s growth trajectory in parallel with China’s rapid rise two decades ago, but with a uniquely Indian approach. Unlike Hettich’s China operation, which serves as an “extended workbench for components” shipped to Germany, the company’s India strategy focuses on creating products that cater directly to the local market’s tastes and preferences. “India is an independent market – made in India for India, and now it’s going made in India for the world,” says Eckholt, distinguishing the two markets. “At the moment, growth is stagnating in China especially the real estate market is down which has an effect on our business,” he says while adding that the company is not investing as much in China as compared to India.
Furthermore, Hettich’s strategy to make India a secondary manufacturing hub reflects a pragmatic response to ongoing global supply chain disruptions and geopolitical tensions. Following the Covid-19 pandemic and subsequent geopolitical conflicts, Hettich has re-evaluated its reliance on any single region for production. The Indian market, which has now become Hettich’s second-largest and fastest-growing, contributing approximately 15% to its global revenue of around €1.5 billion, is critical in this shift. “Our commitment to ‘made in India, made for the world’ couldn’t be bigger. We are developing India as a second manufacturing hub from a global scale to de-risk the supply chain globally,” says Eckholt.
The Bureau of Indian Standards (BIS) and the recent Quality Control Orders (QCOs) from the Indian government are also influencing this trajectory, pushing the sector toward quality and consistency in locally manufactured goods. By aligning with these standards, companies like Hettich are investing in automation not just to meet local demand but to scale globally. Eckholt views this regulatory push as a valuable step toward de-risking supply chains and positioning India as a viable global manufacturing hub.
Ultimately, India’s furniture sector is poised at a critical juncture: embracing automation could enable it to meet both local and international demands with efficiency and scale, emulating the success seen in China. However, the balance between tradition and innovation will define its path forward.