IKEA’s Next Investment Phase and Strategy in India

Attention India
4 Min Read

Swedish retail giant IKEA is poised for a significant investment phase in India following the fulfilment of its initial commitment of Rs 10,500 crore upon entering the market a decade ago. According to Susanne Pulverer, IKEA’s India CEO, the company is gearing up for the next wave of investments to bolster its presence and expand operations in the country.

Expansion and Investment Plans

IKEA commenced its retail journey in India with the inauguration of its first store in Hyderabad in August 2018. Presently, the company is channelling investments into projects in the Delhi-National Capital Region (NCR), with anticipated openings scheduled for 2025. These upcoming ventures mark the culmination of IKEA’s pledged investment for the past decade, totalling Rs 10,500 crore.

Future Investment Strategy

As IKEA looks ahead, Pulverer affirms that the company is in the process of formulating plans for its next phase of investment in India. While the specifics are yet to be disclosed, she emphasizes IKEA’s commitment to fortifying its presence and enhancing sourcing capabilities in the Indian market. The decision regarding the scale and scope of the next tranche of investment will be determined by the parent company, Ingka Group.

Market Dynamics and Growth Potential

With a keen eye on India’s growth trajectory, IKEA sees immense opportunities in the dynamic and evolving market. Pulverer underscores the country’s demographic trends, with a burgeoning young population increasingly investing in home improvement and lifestyle upgrades. This favourable market landscape positions India as a strategic growth hub for IKEA.

Regional Focus and Expansion Plans

IKEA’s expansion strategy prioritizes key regions, particularly the South and West, leveraging an omnichannel approach. However, with the impending launch of stores in Delhi NCR, the company is eyeing further expansion into promising markets such as Lucknow and Chandigarh in North India. While plans for expansion beyond the NCR are still preliminary, cities like Pune, Chennai, and Kolkata are also on IKEA’s radar for future growth initiatives.

Enhanced Sourcing and Localization Efforts

In tandem with its expansion plans, IKEA is committed to ramping up sourcing from Indian markets for its global retail operations. The company recognizes India’s potential as a manufacturing hub and aims to capitalize on opportunities for regional and global sourcing. By increasing local sourcing, particularly in sectors like textiles, plastics, metals, and furniture, IKEA seeks to enhance sustainability and affordability for Indian consumers.

Focus on Online Channels and Sales Growth

IKEA’s sales in India have witnessed a significant surge, with online platforms contributing a substantial portion of revenue. The company has introduced innovative services such as Shop Phone assistance and expanded doorstep delivery facilities to cater to a broader customer base. Despite recording robust sales growth, IKEA reported a loss attributable to investments in market expansion and infrastructure development.


As IKEA prepares for its next investment phase in India, the company remains steadfast in its commitment to growth and innovation. With a focus on expansion, enhanced sourcing, and leveraging online channels, IKEA is poised to consolidate its position as a leading player in India’s retail landscape while offering consumers a diverse and sustainable product range.

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