We’ve invested over Rs 2,000 cr in India and see it as a key player in our global strategy: Hettich India MD

Founded in 1888, Hettich is a premium international manufacturer of furniture fittings and hardware, renowned for its innovative solutions and commitment to excellence. Headquartered in Kirchlengern, Germany, the company operates globally, delivering cutting-edge products that enhance both residential and commercial environments.

With over 20 years of operations in India, the company has solidified its presence, expanding to four manufacturing plants with plans for a fifth, reflecting its long-term commitment to the Indian market. In an interview with Bizz Buzz, Andre Eckholt, Managing Director for India, the Middle East, Africa, and SAARC, shares Hettich’s journey, highlighting, “We’ve invested over `2,000 crore and view India as a key player in our global strategy.”

Focused on sustainability and local manufacturing, Hettich’s ‘Made in India. Made for the World’ initiative aligns with the government's Atmanirbhar Bharat vision. “We’ve already begun exporting globally,” Eckholt notes, emphasizing Hettich’s pivotal role as a market leader. The company also prioritizes skilling initiatives through its Hettich Poddar WoodWorking Institute, aiming to uplift the local workforce while maintaining its high-quality standards in both domestic and international markets.

How has the company evolved in the Indian market?

Hettich's journey in the Indian market has been marked by strategic growth and innovation. Starting as a joint venture with the Adventz Group, Hettich has become a market leader since 2003. Recognising India's potential for manufacturing, the company established its first plant in 2013 and has since expanded to four state-of-the-art facilities in Indore and Vadodara, with plans for a fifth plant underway.

With over 20 years in India, Hettich has built strong brand equity and maintains top-of-mind recall among consumers. The company is seen as a thought leader and pioneer in its industry, evolving into the largest subsidiary outside of Germany within the Hettich Group. This evolution reflects a commitment to making India a key manufacturing hub, leveraging local capabilities while maintaining high standards of quality and innovation.

With India aspiring to be a manufacturing hub and a growing domestic market, what future investments are you looking at?

What began as a greenfield project a decade ago has now flourished into four state-of-the-art manufacturing facilities, with additional plants underway in Indore. This expansion underscores our long-term commitment to India and our vision for it as a key player in Hettich’s global operations. We have already invested 2000 crore for the same.

We are also investing in upgrading our Application Centres (APC) and Hettich Exclusive Centres (HEX), where customers can experience our products firsthand before making a purchase. Additionally, we have established the Hettich Poddar WoodWorking Institute (HPWWI) to focus on skilling, reskilling, and upskilling the youth. We believe that investing in our community’s growth contributes to our overall success.

How would you define your Make in India initiatives?

Our ‘Made in India. Made for the World’ initiative aligns with the Government of India's vision for Atmanirbhar Bharat. Our state-of-the-art manufacturing facilities utilize the latest technology, similar to our international plants, and produce high-quality products tailored for the Indian market. We have also begun exporting our products globally.

As one of the largest organized players in the market, we take pride in having obtained a BIS Certificate, which represents the pinnacle of trust and authenticity in the industry. With this certification, we continue to set industry benchmarks, demonstrating our unwavering dedication to quality and compliance. Achieving BIS certification after a thorough audit of our manufacturing processes and successful sample testing underscores the superlative quality of our products, inspiring trust among our customers and partners.

Given your BIS certification, what is your status in the market among the competition?

Hettich has been a market leader for decades. Our pioneering ingenuity has helped us stay ahead of the curve. Our stringent quality checks ensure our products are of the finest quality, which in turn has helped us reach where

we are today.

How has doing business in India for you and do you see support from trade bodies?

Doing business in India has been a positive experience for us, characterised by a notable ease of operations. The government's efforts to streamline processes and enhance the business environment have significantly contributed to our success in the market.

We have also received satisfactory support from various trade bodies, which have played a crucial role in facilitating our growth. Their initiatives, resources, and networking opportunities have helped us navigate challenges and seize new opportunities effectively. Overall, the collaborative environment has been instrumental in our journey in India.

Is there a level playing field for MNCs and what is your view of the Indian competition?

In India, there is a level playing field for MNCs with no significant disparity in terms of regulations and opportunities. The competitive market landscape encourages healthy competition, allowing us to thrive alongside local players.

The Indian market is both conscious of its market share and highly dynamic. Competition is fair yet aggressive, driving innovation and efficiency across the board. This environment pushes us to continually improve and adapt, ultimately benefiting consumers and the industry as a whole.

What are the initiatives taken by the company towards sustainability and how can it impact the Indian and global furniture industry?

Our manufacturing processes are partly powered by green energy like solar energy and wind energy. We have also achieved zero discharge at all our manufacturing facilities in India ensuring that our operations do not harm the environment. Additionally, we have already started a successful pilot project with CO2-reduced steel in 2021 that produces 70 per cent less CO2. Looking ahead, we have set ambitious goals for ourselves. By 2030, we aim to have all our sites carbon neutral. This commitment to sustainability is not just a corporate responsibility but a promise to future generations. We believe that by taking these steps, we can contribute to a healthier planet while continuing to deliver exceptional products to our customers.

How Hettich is utilizing technology to enhance product innovation and customer experience?

We have embraced digitalisation and automation to streamline our production lines. From raw materials to final products, our processes are automated, minimising human intervention and maximising efficiency and precision. Furthermore, our journey towards excellence is supported by digitalisation through SAP. This advanced system ensures that every product we manufacture meets the highest standards of quality and consistency. With SAP, we can monitor and control every aspect of our production process, ensuring that our customers receive only the best.

For our customers, we have designed the Design Gallery App to allow customers to explore endless design possibilities at the touch of a button. It allows our customers to experience Hettich from the comfort of their homes. Having each and every service listed in one place gives a holistic view of our brand, products and services. It also has a linkage to the e-shop for customers to make a purchase. We also introduced virtual walkthrough for our customers to tour our Mumbai Application Centre virtually from the comfort of their homes. With the help of technology, we have successfully created an immersive experience of our product range and capabilities.

What role can India play in the global market and what are the company's strategic investments in sustainable local manufacturing?

We envision India as the next major manufacturing hub, following in the footsteps of Germany. Our commitment to sustainable manufacturing is already making a significant impact, as we export high-quality goods produced in India to markets such as China, Middle East, Australia, etc. By investing strategically in local manufacturing, we are not only supporting economic growth in India but also promoting sustainable local manufacturing on a global scale.