Hyderabad: Dubai’s largest home improvement retailer, Danube Home, which forayed into India with its flagship store in Hyderabad in November 2018, is impacted by supply constraints from China due to the coronavirus outbreak. The company, which has 28 stores in 10 countries, is chalking out a revised supply chain strategy for global markets including India, to reduce its current dependency on China, and increase sourcing from other markets to minimise the impact.
Danube Home director Adel Sajan told Telangana Today, “For Indian market, we procure furniture, home decor, homeware, sanitaryware, garden furniture and tiles from China. Though China is not the only supplying nation for these products, but the country is a major supplier.”
“We have supply arrangements with about 23 countries, but China accounts for 40 per cent of our supplies. Five years ago, our dependency on China was 80 per cent, which was gradually brought down to half. We are talking to our suppliers there and are trying to gauge the situation and evaluating the overall impact. There could be tangible supply delays from China in the coming months. The affect cannot be nullified fully,” he added.
Alternative search
Danube Home is looking at different alternatives to tackle the situation and is talking to factories in Malaysia, Vietnam, Turkey, Europe and India.
Adel Sajan explains, “Efforts have begun to evaluate different source markets. But, there could be challenges in designing the products for the winter session, later this year. For Hyderabad store, we have stock to take care of majority of the product range. We currently source 20 per cent of our products from within India, and have supply arrangements for home furnishings, décor, homeware and tiles. We have close contacts with the Indian suppliers and will try to fill the supply gap in certain product ranges, where we are dependent on China.”
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