IKEA to Accelerate India Growth, Focuses on Local Sourcing and Sustainability

IKEA is intensifying its expansion across India, with a sharpened focus on adding customer touchpoints, boosting local sourcing, and creating a resilient, sustainable supply chain, as per news reports. After investing more than ₹10,500 crore in its initial phase, the Swedish furniture retailer is readying for what it calls its ‘second wave’ of growth in the country.

Scaling Presence and Localisation

The company is preparing to open 4 to 6 new customer touchpoints each year, a dramatic shift from its previous tempo of launching a single store every year or two. As per news reports, Patrik Antoni, CEO of IKEA India, stated, “India is not only a retail country, not only a sourcing country, but really a part of the global ecosystem for IKEA.” 

Expansion efforts are concentrated in six states with established supply networks, a considered approach that, as Antoni describes, is “not just about pressing the button, but almost.” The brand’s ambitions for India now go far beyond classic big-box stores, with upcoming projects ranging from large flagships in Hyderabad, Navi Mumbai, and Bengaluru, to new Noida and Gurugram outlets, as well as smaller city-centre stores, planning studios and enhanced digital 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 noted.

Deeper Sourcing and Supply Chain Resilience

Localisation is central to IKEA’s next phase. The firm plans to grow local sourcing from 30% to 50% by the end of the decade, already partnering with 45 suppliers who export to global markets. A new design centre is being set up to craft products for Indian homes, using sustainable and recycled materials, and leveraging Indian wood varieties.

Antoni believes that “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.” 

With India’s increased role as a sourcing hub, IKEA is also building out its logistics backbone, including large-format “blue box” stores, dedicated distribution centres in Pune and Gurgaon (with the latter also railway-connected for sustainability), and new investments in electric delivery vehicles, aiming for a fully electric fleet by 2030.

Sustainability, Omnichannel, and Future Investments

Online fulfilment is now being serviced by IKEA’s signature stores, while shopping centre projects in Noida and Gurugram, managed by Ingka Centres, are already underway. Beyond retail, IKEA’s reach in India now runs from finance and digital operations hubs to ambitious climate and energy projects. 

Ingka Investments is exploring renewable energy opportunities, and the IKEA Foundation has earmarked €250 million for climate resilience and rural livelihoods initiatives nationwide. 

Also Read: IKEA Launches First City Store in Delhi, Aims for 50% Local Sourcing!

Conclusion

With an ambitious plan built on local partnerships, distribution upgrades, and green initiatives, IKEA views India as a key strategic market for both growth and innovation. Its new phase focuses on balancing expansion, sustainability, and adaptability in a rapidly changing global marketplace.

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