Sweden's IKEA plans to increase its investment in India to over 200 billion rupees ($2.20 billion) over the next five years, aiming to expand store presence and boost local sourcing, according to Patrik Antoni, CEO of IKEA India. Since opening its first Indian store in Hyderabad in 2018, IKEA has grown cautiously, with total sales reaching 18.61 billion rupees in the year ending August 2025, a 6% increase.
© Loran Zutic | Dreamstime
The retailer plans to quadruple sales by increasing its store network from six to 30 and launching online operations in four new cities, including Chennai and Coimbatore—before opening physical stores. Online sales currently account for over 30% of India revenue, with the goal of reaching 40%.
IKEA also intends to double production for domestic sales and exports to €800 million ($930 million), leveraging India's growing role in global sourcing. While recent U.S. tariffs on Indian imports have challenged some sectors, Antoni said IKEA's Indian suppliers remain largely unaffected due to IKEA's focus on European markets.
This expansion reflects IKEA's belief in India as a high-potential market, driven by rising urbanisation, a growing middle class, and increasing online shopping trends. The company is also testing a first-for-IKEA strategy by launching e-commerce before physical stores in new cities, targeting younger consumers who prefer online shopping to avoid traffic and long commutes.
Source: www.reuters.com
