The Swedish furniture retailer will invest more than Rs 21,000 crore in India by 2030, expand its store network, strengthen local sourcing and scale its omnichannel business as it targets profitability and higher revenue
Swedish furniture retailer Ikea plans to more than double its investment in India to over Rs 21,000 crore by 2030 as it accelerates store expansion, strengthens local sourcing and scales its omnichannel business, Ikea India Chief Executive Officer Patrik Antoni said.
The company had committed to invest Rs 10,500 crore in India after receiving government approval for single-brand retail operations in 2013. Antoni said that commitment has now been fulfilled, including investments in the company’s upcoming mixed-use Lykli developments in Delhi-NCR.
The fresh investment will support Ikea’s next phase of growth in India, with capital earmarked for expanding its retail footprint, developing mixed-use projects, strengthening sourcing operations, investing in renewable energy and enhancing technology capabilities.
India remains one of Ikea’s priority growth markets globally. The company is also targeting profitability over the next few years as it aims to significantly expand its business.
Antoni said Ikea expects to increase its annual turnover in India from around Rs 2,000 crore currently to Rs 8,000 crore by 2030, supported by continued double-digit growth and a broader retail presence.
Alongside retail expansion, the company plans to double its sourcing volumes from India over the next three to four years. The increase will be driven by higher exports as well as rising domestic demand as more stores become operational.
The Indian government approved Ikea’s Rs 10,500 crore foreign direct investment proposal in 2013 to establish 10 stores and related infrastructure over a 10-year period. The retailer later outlined plans to add another 15 stores. India permits 100 per cent foreign direct investment in single-brand retail trading through the automatic route.
Ikea has since expanded its investments beyond retail stores, including mixed-use developments in Noida and Gurugram, a solar farm in Rajasthan, a global capability centre and a growing sourcing network across the country.
Omnichannel Expansion
As part of its long-term strategy, Ikea plans to open around 25 additional stores over the next three to four years, taking its total store count in India to about 30 by 2030. The retailer entered the Indian market in August 2018 with its first large-format store in Hyderabad. It currently operates stores in Hyderabad, Bengaluru and Mumbai, while mixed-use projects are under development in Noida and Gurugram. Through its ecommerce platform, Ikea also serves customers across more than 80 markets in India.
Antoni said improving accessibility through a combination of physical stores and digital channels remains central to Ikea’s India strategy.
Ecommerce currently contributes around 30 per cent of Ikea India’s revenue and is expected to account for a larger share of the business as AI-powered commerce evolves. While new store openings will continue to drive offline growth, the company expects online sales to expand at a faster pace.
Workforce And Sourcing
Ikea also plans to double its workforce in India by the end of the decade.The company currently employs around 2,500 people and intends to add another 2,500 employees by 2030. Antoni said Ikea is investing in leadership development to support its expansion plans.
At the same time, the retailer is expanding sourcing from India for both domestic operations and exports, reinforcing the country’s role in Ikea’s global supply chain as the company scales its presence in one of its fastest-growing markets.
