Flipkart increases 'Made in India' products on platform

Flipkart has increased its ratio of 'Made in India' products across multiple categories for its own private labels, including textiles.

Flipkart is sourcing more of its private label brands’ products in India - Flipkart

Out the 150 factories that Flipkart works with for its private label business, 100 are now based in India, Flipkart’s private label business head, Adarsh Menon, told ET Bureau.

Menon said that most of the textiles used in its private label brands and apparel are sourced from India, as well as most private label consumer durables, white goods, and electronics. 

The business’ move to source a greater number of its products in India is in line with the Union government’s 'Make in India' campaign. The campaign aims to increase domestic production in order to increase the country’s gross domestic product and reduce imports as well as create employment opportunities. The business is also cutting costs by manufacturing many items inside India. 

Flipkart’s private label business contributes around eight percent of the business’ total sales, sources told ET Bureau. Although the future of private labels was unclear when the government put new foreign direct investment regulations into effect in February, they have been allowed for foreign-owned firms with some tweaks to the supply chain structure. 

Flipkart falls under government FDI regulations as it was acquired by the U.S. business Walmart last year. Walmart also sources a lot of its private label products from India and is expanding its wholesale business in the country. 

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