German furniture fittings and architectural hardware major Häfele — a 102-year-old, family-owned group operating in India for more than 23 years — has taken a decisive and unprecedented step in its global strategy. The company has acquired a minority stake in Isler, an emerging Indian contract manufacturer of built-in kitchen appliances. This is Häfele’s first-ever investment in a startup anywhere in the world, and it signals both the maturing of India’s manufacturing ecosystem and the growing alignment between multinational quality expectations and domestic production capabilities.
The move is rooted in a clear shift in India’s appliance industry: Quality Control Orders (QCOs), rising consumer expectations, and global supply chain realignments are compelling multinational companies to localise product development, engineering, and manufacturing. Häfele’s partnership with Isler is therefore far more than a financial transaction; it is a strategic bet on India’s potential as a high-quality export hub for built-in appliances.
The Push to Localise
Over the past two years, Häfele has been systematically assessing the Indian market to identify vendors capable of meeting the group’s stringent ‘5-star’ German quality philosophy. While Häfele continues to source more than 70 percent (from 90 percent till couple of years back) of its range from global suppliers — many of them based in China — the company began exploring how to diversify its sourcing footprint in line with ‘Make in India’ priorities.
During this period, Häfele identified 30 Indian manufacturers who could match its global product standards across fittings, hardware, and components. But built-in kitchen appliances remained a challenge. The segment is specialised, quality-intensive, and technically demanding, and India historically lacked OEMs capable of delivering to European benchmarks.
“There are many large mass-market appliance makers, but very few in the built-in category. It was far more difficult for us to localise production,” says Frank Schloeder, MD, Häfele South Asia.
The search intensified in the backdrop of rising compliance requirements. As India began tightening BIS norms under the Safety of Household, Commercial and Similar Electrical Appliances (Quality Control) Order, 2025, global appliance brands were forced to reconsider purely import-led models. Häfele needed a partner that could scale, innovate, and meet international expectations — a combination rarely found under one roof in India’s appliance manufacturing landscape.
When ‘Make in India’ Clicks: The Isler Connection
The turning point came when Häfele encountered Isler India, a young appliance manufacturing company founded by Pravesh Kumar, Chirag Kakkar, and Mudit Mishra. At the time of the first presentation to Häfele, Isler existed largely as a detailed business plan supported by engineering concepts — “just a PowerPoint,” as Schloeder recalls. But the direction, clarity and ambition of the founders stood out.
The team was already working with Livspace co-founder and IIT Kanpur alumnus Ramakant Sharma, who became Isler’s first customer and early investor. With Livspace’s design team, Isler engineered its first chimney and hob models, starting production in October 2023. The real acceleration began after a chance dinner meeting between Pravesh and Schloeder, which resulted in Isler fast-tracking its first deliveries for Häfele to end of this year.
Within a year, Isler had developed more than 60 appliances for various brands and was in the process of engineering 40 more. For a young OEM, this pace is exceptional and underscores Häfele’s confidence in the founders and their processes.
Convinced of Isler’s potential, Schloeder approached the Häfele board in Germany and secured approval for a minority investment. The reported ₹25 crore investment was significant not only in size but in symbolism — the company had never invested in any startup globally prior to this.
Why Appliances, Why Now
India’s built-in kitchen appliances category may still be small, accounting for less than five percent of the overall appliance market, but it is among the fastest growing segments in Asia Pacific. According to Grand View Research, the category generated USD 347.2 million in 2022 and is expected to reach USD 788.9 million by 2030, growing at a CAGR of 10.8 percent.
Compliance has played an equally important role. The BIS Quality Control
Orders introduced during 2023–25 have effectively compelled appliance brands
to manufacture or source from India. For many brands, this means replacing
long-standing China-only sourcing models with hybrid India–Asia supply chains.
In this environment, an OEM that can combine design engineering, precision manufacturing, and certification readiness becomes invaluable. Isler’s process-driven approach, digitalised workflows, and intense focus on quality qualification allowed it to deliver a scale and speed that aligned neatly with Häfele’s localisation ambitions.
A 30-Acre Vision
In parallel with this investment, Häfele has embarked on a much larger structural move — the creation of a 30-acre integrated manufacturing hub near Mumbai. Planned in phases, this hub is designed to house both Indian and international OEMs manufacturing for Häfele. The idea is to establish a shared ecosystem where appliance, fittings, and component manufacturing coexist, enabling faster product development, lower logistics costs, and tighter quality controls.
When completed, this hub is expected to raise Häfele’s local sourcing levels to over 50 percent and could also serve as an export base supplying global markets. The initiative aligns with government priorities around supply-chain diversification and high-value manufacturing, and positions Häfele as a long-term strategic investor in India.
Partner, Not Owner
Despite the investment, Häfele has been clear that Isler will continue operating as an independent entity. The company is free to work with any brand — including some that may compete with Häfele in appliances. Schloeder himself underscores this point, “They are like any other OEM for us; we alone cannot take everything they produce.”
Government Seal of Approval
The Häfele–Isler partnership has been recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) and has drawn appreciation from Union Commerce Minister Piyush Goyal, who cited it as evidence of how QCO-driven reforms are improving product quality and strengthening India’s manufacturing landscape.
In parallel, Häfele has also signed an MoU with DPIIT to support the government’s Startup India mission. Through this collaboration, Häfele aims to mentor and enable high-potential manufacturing startups, particularly those focused on design, engineering, and advanced production capabilities. The company’s investment in Isler is being viewed as one of the early outcomes of this engagement, demonstrating how global organisations can help India build a deeper, more innovation-driven manufacturing ecosystem.
Inside the Isler Story
Isler’s rise has been rapid but not accidental. Its founding team combines engineering depth, semiconductor manufacturing experience, global exposure, and on-ground operations consulting. Pravesh, an IIT Kanpur electronics engineer, worked across Europe and Southeast Asia in semiconductor and EMS facilities — experience that shaped his understanding of reliable and scalable manufacturing models. He later returned to India to head a consulting practice advising global manufacturers, where he witnessed supply-chain vulnerabilities up close during the COVID-19 disruptions.
This experience led him and his co-founders to identify a clear gap: India lacked a world-class appliance OEM that could serve both Indian and global brands with design, manufacturing, compliance, and quality under one roof. Backed by Livspace as the first customer, Isler’s early portfolio expanded quickly. The Greater Noida facility — built with digital quality controls, automated workflows, and modular production lines — has already seen investments of over ₹20 crore, and will continue to scale as new product lines are added.
The Road Ahead
For Isler, the partnership with Häfele represents a long-term strategic alignment that strengthens its credibility, accelerates its learning curve, and gives it access to a global product ecosystem. The company is preparing for expanded production, additional facilities, and backward integration. It is also exploring financing options for future capex through banks, SIDBI, and government manufacturing schemes.
For Häfele, the investment advances its India mission: to build a reliable, scalable, and compliant manufacturing base aligned with global quality expectations. By partnering with an ambitious domestic OEM, Häfele strengthens its supply chain resilience, supports its export agenda, and contributes to the growth of India’s manufacturing ecosystem.
Both companies believe this partnership will catalyse broader industry transformation — raising quality standards, accelerating localisation, and creating opportunities for other brands, suppliers, and OEMs. In essence, the move reflects how global and Indian players can co-create value in a compliance-driven, quality-conscious market poised for long-term growth.
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