IKEA says Swants 10 increase sourcing from India: PTI

IKEA says Swants 10 increase sourcing from India: PTI

Global furniture retailer IKEA has announced plans to significantly increase its sourcing from India, aiming for a 10% increase by 2030. This move is part of the company's broader strategy to accelerate growth in the Indian market, which it sees as a key part of its global ecosystem. IKEA India CEO Patrik Antoni stated that the company will add four to six new customer touchpoints annually, including stores, planning studios, and online platforms. This expansion will be supported by a robust supply chain and increased localization efforts.

According to Antoni, IKEA will increase its local sourcing from the current 30% to 50% by 2030. The company is already working with 45 suppliers, many of whom export globally, and plans to invest in a design centre to create products tailored for Indian homes. This focus on localization is crucial for balancing supply chain risks and ensuring affordability and resilience in IKEA's offerings [1].

IKEA's expansion in India is not limited to retail. The company has invested in distribution centres and electric delivery vehicles to support its growing online fulfilment operations. The Gurgaon hub, for instance, is railway-connected and part of IKEA's broader sustainability agenda. Additionally, IKEA's India presence includes a Global Capability Centre handling finance and people operations, a digital hub supporting global teams, and Ingka Centres' two large shopping centres under construction in Noida and Gurugram [1].

The company's plans come amidst uncertainty surrounding US tariffs. Jesper Brodin, CEO of INGKA Group, noted that while IKEA cannot influence tariff outcomes, it is preparing to adapt. Brodin also highlighted the potential benefits of the India-EU Free Trade Agreement, which could be a win-win for both parties [1].

With its expansion anchored in retail, sourcing, logistics, and sustainability, IKEA sees India as one of its most strategic markets globally. The company's investment in India is expected to contribute significantly to its overall growth and resilience.

References:
[1] https://m.economictimes.com/industry/services/retail/ikea-plans-aggressive-india-expansion-with-stronger-local-sourcing/articleshow/123389217.cms