In a significant development to strengthen India’s manufacturing ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has partnered with Häfele India Pvt. Ltd. The Memorandum of Understanding (MoU) signed by both parties signals a firm commitment to empower startups, MSMEs, and entrepreneurs in the country. The collaboration promises to bolster product innovation, drive local sourcing supply chain and innovation.
This alliance aligns with the national vision of transforming India into a global manufacturing hub by building resilient supply chains. Through this MoU, both entities have committed to nurturing the startup ecosystem by providing infrastructure support, facilitating supplier development, and encouraging technical collaborations. Importantly, the partnership will remain effective for a period of two years from the date of signing, with provisions for extension based on mutual agreement.
Strengthening the Startup and MSME Ecosystem
The DPIIT and Häfele India partnership will directly benefit product startups and Micro, Small, and Medium Enterprises (MSMEs) across the country. Through the Startup India initiative, DPIIT will offer startups access to ecosystem enablers, help in program participation, and provide opportunities for co-branding support. On the other hand, Häfele India will contribute by offering infrastructure access, procurement support, and exposure to national and international market opportunities.
Moreover, this initiative will allow Indian startups to leverage Häfele’s established technical expertise and global standards. The joint effort intends to bridge gaps in product design, supply chain management, and manufacturing capabilities within India’s entrepreneurial sector. Consequently, this move will catalyze innovation and push the boundaries of product excellence in India.
Häfele’s Commitment to Local Sourcing
Häfele India has already demonstrated its commitment to local manufacturing by investing in Indian enterprises. The company has committed over USD 2.5 million to an Indian appliance manufacturing startup. Furthermore, Häfele has also issued purchase orders to Indian MSME manufacturers specializing in architectural hardware and furniture fittings.
The German brand, through its Indian subsidiary, aims to gradually increase domestic sourcing. Currently, Häfele India sources 10 percent of its components locally. However, it plans to ramp this up to 30 percent by December 2025. In subsequent years, the company intends to further raise this figure to 50 percent, marking a transformative shift in its sourcing strategy.
Future Plans Include Supplier Park and Manufacturing Hub
To strengthen its local supply chain network, Häfele India plans to develop a supplier park within the country. This park will serve as a focal point for manufacturing and supply chain collaboration between Häfele India and Indian partners. It also aims to attract European manufacturing partners to establish production bases in India, thereby promoting international collaboration and enhancing manufacturing capabilities.
This strategic initiative will not only boost Häfele’s operational efficiency in India but also support the country’s goal of becoming a major global manufacturing leader. It reflects Häfele’s long-term vision of building partnerships that offer sustainable and scalable solutions to the Indian market.
Signing Ceremony Highlights Intent
The signing of the MoU took place in the presence of DPIIT Director Sumeet Jarangal and Frank Schloeder, Managing Director of Häfele India (South Asia). Both signatories expressed confidence in the partnership and emphasized the shared goal of fostering product-based innovation in India. Their commitment underlines the importance of public-private partnerships in strengthening the country’s economic foundation.
This collaboration comes at a time when the Indian government is focused on enhancing self-reliance, promoting innovation, and empowering the MSME sector. With strategic players like Häfele joining hands with government bodies, the potential to transform the Indian manufacturing landscape becomes increasingly tangible.
