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Swedish furniture retailer IKEA plans to more than double its investment in India to over ₹200 billion ($2.20 billion) in the next five years as it accelerates store expansion and deepens local manufacturing, a senior executive said on Monday.
The company, which entered India in 2018 with its first store in Hyderabad, will also begin accepting online orders in four new cities where it currently has no physical stores, including Chennai and Coimbatore in Tamil Nadu—marking a first-of-its-kind strategy for IKEA globally.
“India is not a large IKEA country yet, but our belief in its potential is very strong. We see it becoming one of our top markets in the future,” said Patrik Antoni, CEO of IKEA India, in an interview with Reuters.
IKEA’s India sales rose 6% to ₹18.61 billion in the year ended August 2025. Antoni said the company aims to quadruple revenues over time, supported by an expansion of its retail network from six stores to 30.
In a shift from its traditional model, IKEA will roll out e-commerce operations before opening physical stores in new cities, a strategy tailored to young Indian consumers who increasingly prefer online shopping to avoid traffic congestion, said Bhavana Jaiswal, country e-commerce integration manager.
Online sales already account for over 30 per cent of IKEA’s India revenue, and the company is targeting 40 per cent in the coming years.
On the supply side, IKEA plans to double its production for domestic sales and exports to €800 million ($930 million), further strengthening its manufacturing base in India.
The move aligns with a broader trend of global companies scaling up Indian production to reduce costs and diversify supply chains. Brands ranging from Asics to VinFast have been increasing local sourcing to serve both domestic and export markets.
While U.S. President Donald Trump raised tariffs on some Indian imports last year, Antoni said the impact on IKEA’s Indian suppliers has been limited, as most of the company’s exports from India are destined for European markets.
With aggressive expansion plans, rising digital sales, and deeper local sourcing, IKEA is betting big on India as a long-term growth engine.
The company, which entered India in 2018 with its first store in Hyderabad, will also begin accepting online orders in four new cities where it currently has no physical stores, including Chennai and Coimbatore in Tamil Nadu—marking a first-of-its-kind strategy for IKEA globally.
“India is not a large IKEA country yet, but our belief in its potential is very strong. We see it becoming one of our top markets in the future,” said Patrik Antoni, CEO of IKEA India, in an interview with Reuters.
IKEA’s India sales rose 6% to ₹18.61 billion in the year ended August 2025. Antoni said the company aims to quadruple revenues over time, supported by an expansion of its retail network from six stores to 30.
In a shift from its traditional model, IKEA will roll out e-commerce operations before opening physical stores in new cities, a strategy tailored to young Indian consumers who increasingly prefer online shopping to avoid traffic congestion, said Bhavana Jaiswal, country e-commerce integration manager.
Online sales already account for over 30 per cent of IKEA’s India revenue, and the company is targeting 40 per cent in the coming years.
On the supply side, IKEA plans to double its production for domestic sales and exports to €800 million ($930 million), further strengthening its manufacturing base in India.
The move aligns with a broader trend of global companies scaling up Indian production to reduce costs and diversify supply chains. Brands ranging from Asics to VinFast have been increasing local sourcing to serve both domestic and export markets.
While U.S. President Donald Trump raised tariffs on some Indian imports last year, Antoni said the impact on IKEA’s Indian suppliers has been limited, as most of the company’s exports from India are destined for European markets.
With aggressive expansion plans, rising digital sales, and deeper local sourcing, IKEA is betting big on India as a long-term growth engine.
