Blitz Bureau
NEW DELHI: Sweden’s Ikea will more than double its investment in India to over $2.2 billion within the next five years, as the global furniture retailer pursues wider expansion through additional physical stores and increased local sourcing. Patrik Antoni, CEO of Ikea India, confirmed the commitment last week, highlighting plans that position India as a priority growth market for the company.
Ikea intends to extend its online order service to four additional cities where it currently lacks physical outlets, including Chennai and Coimbatore in Tamil Nadu. This move will allow Ikea to reach new customers before launching brick-and-mortar stores, adapting to consumer trends in urban India.
“(India) is not a large Ikea country yet … But the belief in India is very strong that it will be one of our top markets,” said Patrik Antoni, CEO of Ikea India, in an interview with Reuters.
The company has reported a 6 per cent increase in India sales, rising to 18.61 billion rupees for the year ended August 2025, and aims to quadruple this figure by expanding its store network to 30 outlets nationwide.
Ikea plans to introduce online services in new cities before establishing physical stores, marking a first for the brand globally. This approach reflects the shift among younger consumers who increasingly favour online shopping to avoid city traffic.
Ikea plans to introduce online services in new cities before establishing physical stores, marking a first for the brand globally. This approach reflects the shift among younger consumers who increasingly favour online shopping to avoid city traffic, according to Bhavana Jaiswal, Ikea India’s country e-commerce integration manager.
The Swedish retailer is also set to double domestic production for its Indian stores and exports, reaching $930 million, according to Antoni.
Ikea’s expansion aligns with broader trends among international brands, as more companies boost production and sourcing in India to manage costs and tap into the country’s growing consumer market. Firms such as Asics and VinFast Auto are also increasing their sourcing activities to meet domestic demand.
Antoni stated that recent increases in tariffs on Indian exports to the United States have had limited impact on Ikea’s Indian suppliers, as the retailer primarily serves markets in Europe and continues to ship goods to a wide range of destinations.