Wood & Furniture

India is one of the world' largest furniture exporters. EU buyers — IKEA, Wayfair, local wholesalers — source solid wood, upholstered, and rattan furniture from India. EU Furniture Directive, REACH compliance (formaldehyde from MDF, SVHC in surface treatments), EUDR (for wood provenance), and EN flammability standards are key EU requirements. …

1. Market and Regulatory Assessment — 4-8 weeks
2. EU Compliance and Certification Programme — 3-12 months depending on sector
3. EU Buyer Identification and Qualification — 3-6 months
4. Commercial Negotiation and Contract — 4-8 weeks
5. Order Execution, Quality Control, and Pre-Shipment — Throughout production cycle
6. Shipment, Documentation, FTA Optimisation, and Post-Export Incentives — 2-4 days per shipment

Challenge: A Gujarat-based furniture manufacturer (bedroom furniture, storage solutions) had become an IKEA approved supplier after a 2-year qualification process. IKEA' payment terms were 90 days after proof of delivery. This created a significant working capital challenge: the Indian manufacturer was funding 90 days of working capital (raw materials, production, freight) before receiving any payment from …

Outcome: Supplier Financing Programme onboarding completed in 6 weeks. On the first EUR 3.2M annual IKEA order, the manufacturer elected early payment for 75% of invoices. Working capital cost reduced from 11% (Indian bank) to 3.8% (IKEA SFP) on the elected invoices. Annual working capital cost saving: approximately EUR 108,000 on EUR 3.2M order flow. Cash conversion cycle improved from 120 days to 30 days…