Almhult [Sweden] August 19 : Jesper Brodin, CEO of Ingka Group, announced that IKEA, which is part of the Group, will significantly expand its presence in India, aiming to increase local sourcing from the current 30 per cent to 50 per cent by 2030 as part of its long-term strategy.
The company plans to open 5-6 new touchpoints every year for the next five years, the Ingka Group CEO said.
Ingka Group controls 90 per cent of IKEA's retail business, as per the company.
These will include large-format stores, as well as smaller outlets located in malls and city centres, Brodin added.
He said the company plans to double its number of stores and customer touchpoints in the country over the next 12 to 18 months.
According to the Ingka Group CEO, major expansion is planned in Delhi NCR, with upcoming large-format stores in Noida and Gurgaon.
Additionally, two more big stores are set to open in South India, though exact locations were not disclosed.
Speaking to the media, Brodin said, "We are actually redesigned to take it step by step in India, where the first opening back in 2018, I think it was, and then we learned a lot and adjusted for our second opening, which was moved by right. And then we continue step by step in the coming 12 to 24 months. We, basically, will have the opportunity to double our capacity in India."
"Whether it's fast or slow.... the most important for us is not to be fast but to do it really good real estate prices, which is now, he converted. I think first India requires a lot of capital investment...We like to take this step to improve that. It actually gives us Financial as well, obviously in the big cities of India. The real estate prices are fairly high if you go back 20 years or 40 years, of course. It's a different board game, but this is what we are quite used to in other parts of the world as well when we look at the Investments," Brodin added.
IKEA currently operates three large stores in Hyderabad, Navi Mumbai, and Bengaluru. The company has invested Rs 10,500 crore in India so far. It has also ventured into online retail, offering 24-hour delivery services in select areas to improve customer accessibility.
On the sourcing front, IKEA currently works with 45 Indian suppliers, mainly for textiles and toys.
Brodin added that while IKEA is currently operating around five to six stores in India, the company plans to accelerate its rollout after reaching the 10-12 store mark, indicating a faster pace of expansion in the coming years.
IKEA is a multinational conglomerate that designs and sells ready-to-assemble furniture, home goods, and related services. It's known for its affordable, well-designed products, and its unique business model that often involves customers assembling their own furniture.
Founded in Sweden in 1943, IKEA has grown into a global leader in home furnishing with over 400 stores in numerous countries.
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