IKEA bets big on India: Ingka Investments launches ₹1,000 crore solar project in Rajasthan

Ingka Investments, the investment arm of Ingka Group - the largest IKEA retailer globally - has announced its first renewable energy project in India, marking a major step in the company’s sustainability journey.

The 210 MWp solar installation in Bikaner, Rajasthan, part of Ingka Investments’ ₹10 billion commitment to renewable energy in India, has reached ready-to-build status with construction starting shortly.

Operations are scheduled to begin in December 2026, with expected annual energy production of 380 GWh, enough to power IKEA’s growing retail, shopping centre, and distribution operations.

Frederik de Jong, Head of Renewable Energy at Ingka Investments, said, “This is a milestone acquisition for us – it marks the first renewable energy investment for Ingka Investments in India, a country of utmost importance for IKEA retail and the IKEA supply chain.”

The project, a 100% stake investment in a subsidy-free solar park, will also generate significant local employment, with around 450 people employed during construction and 10–15 during operations. The company is partnering with ib vogt Solar India for development, construction, and the first three years of operations.

Patrick Antoni, CEO of IKEA India, emphasised that sustainability remains central to IKEA’s India strategy. “At IKEA, sustainability is at the heart of everything we do…with EV charging stations in our stores and energy-saving solutions for our customers, and now also an investment in a solar project, we’re inspiring positive change and contributing to a cleaner, more sustainable future for India,” he said.

Beyond renewable energy, IKEA India continues to expand its retail footprint and enhance customer experience. The West Delhi city store has exceeded expectations, attracting steady weekend queues since opening. Antoni confirmed plans for larger stores and integrated retail hubs in Gurgaon and Noida to strengthen the company’s presence in the NCR.

Local sourcing and trade policy remain key to IKEA’s affordability strategy. Antoni highlighted that free trade agreements and reduced tariffs will enable faster growth and lower costs for consumers. “When tariffs are high, the cost eventually goes to the customer. Free trade agreements help expand manufacturing and keep prices affordable,” he said.

With renewable energy investments, expanded store formats, faster delivery infrastructure, and a focus on local sourcing, IKEA is positioning India as one of its top three strategic growth markets globally, combining sustainability, efficiency, and affordability in its next phase of growth. 

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