German major aims to cut import reliance to 25% by year-end, drive local manufacturing ecosystem.
Häfele South Asia is shifting gears in its India journey with a clear focus on local manufacturing and reducing import dependence. The German interiors major, known for its premium hardware, lighting, kitchen, and home appliance solutions, has taken a decisive step toward deep localizsation through a strategic partnership and investment in Isler — a young Indian home appliance manufacturer under the government’s Make in India initiative.
“This partnership is a milestone for us because Isler breathes quality and innovation, which perfectly aligns with Häfele’s philosophy,” said Frank Schloeder, Managing Director, Häfele South Asia, at the official opening of Isler’s manufacturing facility in Greater Noida. “We share the same DNA — a focus on design, quality, and precision — and this collaboration marks the start of a new chapter for our business in India.”
The investment — approximately Rs 25 crore — represents Häfele’s first equity partnership in India. But for Schloeder, it’s not just about funding. “We are not a dominant investor; we are a true partner. Our teams work hand in hand — we help them, and they help us. It’s far beyond a supplier-customer relationship,” Schloeder, who convinced the headquarters to the importance of the partnership and investments, said.
The move comes at a time when Häfele is rapidly transforming its business model in India from a trading-led and import-oriented operation to a manufacturing-driven one. “Up to December last year, 90% of what we sold in India was imported. Today, that figure is down to 70%, and by the end of this year, we will be between 25 and 30% imports oriented. That is a massive shift,” Schloeder emphasized.
He added that the company has already enabled over 30 Indian suppliers across categories such as furniture fittings, lighting, architectural hardware and digital locks. “In just one year, we tripled our Make in India share. The effort is not only to manufacture here but to do it in the best quality possible,” he said.
The partnership with Isler marks Häfele’s entry into domestic appliance manufacturing. Isler currently produces hoods and hobs for Häfele, with plans to expand to other built-in and small appliances. “Starting with assembly is the right approach. It’s a journey — you cannot build a manufacturing ecosystem overnight,” Schloeder said. “But the important part is to do it right from day one — with quality built into every step.”
Talking about the Make in India programme and making India a manufacturing hub, Schloeder said that while India has the potential like China, it has to start with the assembling and developing complete ecosystem of suppliers. Calling for a structured policy framework to nurture such ecosystems, he added, “The government is doing well with focused initiatives on toys and footwear. We need similar attention for furniture and interior manufacturing. India can become the world’s next big furniture hub — like Poland or Vietnam — if we get this right.”
Saying that Isler believes in “building manufacturing ecosystems together through partnerships,” Pravesh Kumar, co-Founder & CEO, Isler India, said that the objective was to create a “world class manufacturing company” which can provide customers with the highest quality products with the “same design language”. He said that not many manufacturers in India were able to provide kitchen appliances in the same design language, which has been a white space for long.
