Ikea plans to invest another Rs 10,500 crore in India over the next five years. The Swedish furniture retailer aims to expand its retail operations significantly. This move will more than double its previous investment in the country.
Expansion Plans and Store Targets
Ikea may add 20 to 30 new stores by 2030. This rapid expansion will increase its footprint across India. The company targets profitability by the end of 2028, according to Ikea India CEO Patrik Antoni.
Antoni shared details with TOI. He stated that the majority of the new investment will fund retail developments. This includes new retail stores and shopping centres.
Focus on Major Markets and New Locations
The primary focus for new stores will be in major cities. These include Delhi, Bengaluru, Mumbai, Hyderabad, and Chennai. Ikea is also exploring other locations like Lucknow, Chandigarh, and Jaipur.
Antoni highlighted specific projects. Ikea plans to build two large shopping centres with integrated stores outside Delhi. Each project will involve an investment of around Rs 400 crore to Rs 500 crore.
Current Operations and Past Investments
Ikea had announced a Rs 10,500-crore investment in 2012. This amount has now been fully deployed. The company currently operates six stores in India.
These stores comprise three large-format outlets, two city stores, and one plan-and-order point. Antoni also mentioned broader investments. These include expanding Ikea's global capability centre and digital hub in India.
Sourcing Goals and Online Deliveries
Ikea aims to double its sourcing from India to 800 million euros by 2030. This will increase domestic sourcing from 30% to 50%. The move supports local manufacturing and supply chains.
The company announced the launch of online deliveries in several Tamil Nadu cities. These include Chennai, Madurai, Coimbatore, and Salem. Ikea plans to open a retail store in Chennai as part of this expansion.
This investment strategy reflects Ikea's strong commitment to the Indian market. It aligns with the company's goal to become a major player in India's retail sector.
