Global furniture retail IKEA is gearing up for its 'second wave' of growth in India, with an accelerated expansion plan backed by stronger local sourcing, robust logistics, and a deeper omnichannel strategy after investing over Rs 10,500 crore in the first phase, said Patrik Antoni, CEO, IKEA India.
The Swedish company will now add four to six new customer touchpoints in India every year, a sharp step-up from its earlier pace of opening one store every year or two.
"India is not only a retail country, not only a sourcing country, but really a part of the global ecosystem for IKEA," Antoni said. "We have been focusing the expansion in six states where we already have a good supply chain set up. It’s not just about pressing the button, but almost."
Meanwhile, Jesper Brodin, CEO of INGKA Group, which is the biggest franchisee of Inter IKEA, stated that IKEA will adapt to the new business environment owing to the ongoing US tariff issue.
“On tariffs, there’s still significant uncertainty, and while IKEA has limited ability to influence outcomes, the focus is on preparing to adapt, especially given that its supply chain is far more regional and local than many assume," Brodin said while adding that that India-EU Free Trade Agreement will be a win-win for both the sides.
IKEA's upcoming stores will be a mix of large-format flagship stores like those in Hyderabad, Navi Mumbai, and Bengaluru; new outlets in Noida and Gurugram; and smaller city-centre stores, planning studios, and online platforms.
"The IKEA experience is no longer limited to a single visit to a large store—it’s a combination of many touchpoints, more convenient and more accessible,” Antoni added.
Localisation will be central to IKEA’s India strategy. The company plans to increase local sourcing from 30% today to 50% by 2030. With partnerships already in place with 45 suppliers, many of whom export globally, IKEA is also investing in a design centre to create products tailored for Indian homes, with an emphasis on sustainable and recycled materials, including Indian wood varieties.
Antoni said India’s growing role as a sourcing hub strengthens IKEA’s ability to balance supply chain risks.
"Localisation and diversification are important for us. As global trade dynamics evolve, India’s position becomes even more critical in ensuring affordability and resilience in our offering,” he noted.
Much of IKEA’s online fulfilment in India is being managed by its large-format “blue box” stores. To prepare for scale, the company has also invested in dedicated distribution centres--one in Pune, which currently services stores across western and southern markets, and another in Gurgaon that will cater to northern stores while also handling direct-to-customer deliveries.
The Gurgaon hub is railway-connected, part of IKEA’s broader sustainability agenda. On last-mile logistics, the retailer has transitioned over 90% of its fleet to electric delivery vehicles (EDVs) and aims to reach 100% by 2030.
Beyond retail, IKEA’s India presence spans sourcing, a Global Capability Centre handling finance and people operations, a digital hub supporting global teams, and Ingka Centres’ two large shopping centres under construction in Noida and Gurugram.
Ingka Investments is also exploring renewable energy opportunities, while the IKEA Foundation has earmarked 250 million euros for climate resilience and rural livelihood projects in India.
With its expansion anchored in retail, sourcing, logistics, and sustainability, IKEA sees India as one of its most strategic markets globally, combining customer growth potential with supply chain strength. Ends
(The writer is in Alhmult, Sweden at the invitation of IKEA)
The Swedish company will now add four to six new customer touchpoints in India every year, a sharp step-up from its earlier pace of opening one store every year or two.
"India is not only a retail country, not only a sourcing country, but really a part of the global ecosystem for IKEA," Antoni said. "We have been focusing the expansion in six states where we already have a good supply chain set up. It’s not just about pressing the button, but almost."
Meanwhile, Jesper Brodin, CEO of INGKA Group, which is the biggest franchisee of Inter IKEA, stated that IKEA will adapt to the new business environment owing to the ongoing US tariff issue.
“On tariffs, there’s still significant uncertainty, and while IKEA has limited ability to influence outcomes, the focus is on preparing to adapt, especially given that its supply chain is far more regional and local than many assume," Brodin said while adding that that India-EU Free Trade Agreement will be a win-win for both the sides.
IKEA's upcoming stores will be a mix of large-format flagship stores like those in Hyderabad, Navi Mumbai, and Bengaluru; new outlets in Noida and Gurugram; and smaller city-centre stores, planning studios, and online platforms.
"The IKEA experience is no longer limited to a single visit to a large store—it’s a combination of many touchpoints, more convenient and more accessible,” Antoni added.
Localisation will be central to IKEA’s India strategy. The company plans to increase local sourcing from 30% today to 50% by 2030. With partnerships already in place with 45 suppliers, many of whom export globally, IKEA is also investing in a design centre to create products tailored for Indian homes, with an emphasis on sustainable and recycled materials, including Indian wood varieties.
Antoni said India’s growing role as a sourcing hub strengthens IKEA’s ability to balance supply chain risks.
"Localisation and diversification are important for us. As global trade dynamics evolve, India’s position becomes even more critical in ensuring affordability and resilience in our offering,” he noted.
Much of IKEA’s online fulfilment in India is being managed by its large-format “blue box” stores. To prepare for scale, the company has also invested in dedicated distribution centres--one in Pune, which currently services stores across western and southern markets, and another in Gurgaon that will cater to northern stores while also handling direct-to-customer deliveries.
The Gurgaon hub is railway-connected, part of IKEA’s broader sustainability agenda. On last-mile logistics, the retailer has transitioned over 90% of its fleet to electric delivery vehicles (EDVs) and aims to reach 100% by 2030.
Beyond retail, IKEA’s India presence spans sourcing, a Global Capability Centre handling finance and people operations, a digital hub supporting global teams, and Ingka Centres’ two large shopping centres under construction in Noida and Gurugram.
Ingka Investments is also exploring renewable energy opportunities, while the IKEA Foundation has earmarked 250 million euros for climate resilience and rural livelihood projects in India.
With its expansion anchored in retail, sourcing, logistics, and sustainability, IKEA sees India as one of its most strategic markets globally, combining customer growth potential with supply chain strength. Ends
(The writer is in Alhmult, Sweden at the invitation of IKEA)
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