IKEA to triple India presence with Rs 20,000 crore investment by 2030
20 January 2026, Mumbai
Sweden’s home furnishing major, IKEA plans to invest over Rs 20,000 crore ($2.2 billion) in India over the next five years. This capital infusion is designed to scale its physical footprint from the current six locations to 30 stores nationwide. Despite a broader slowdown in global discretionary spending, the retailer reported a 6 per cent revenue increase to Rs 1,860.8 crore for the fiscal year ended August 2025. This growth was largely anchored by a 34 per cent growth in e-commerce, which now accounts for nearly a third of its total Indian turnover.
Digital-first market entry and omni-channel integration
In a global strategic departure, IKEA is now deploying a digital-led entry model for high-potential urban clusters. The company has commenced online operations in Chennai and Coimbatore, Tamil Nadu, ahead of establishing brick-and-mortar sites - a first for the brand’s 80-year history. This shift addresses the preferences of India’s younger, mobile-first demographic while bypassing the logistical complexities of urban congestion. Management targets a 40 per cent share for online sales by 2030, supported by smaller format stores and specialized ‘Plan and Order’ points in Tier-I and Tier-II cities.
Manufacturing resilience amid shifting trade dynamics
Parallel to its retail expansion, IKEA is doubling its Indian production capacity to €800 million (approx. Rs 7,200 crore) to serve both domestic demand and export markets. This manufacturing ramp-up provides a critical hedge against global trade volatility. While the US recently implemented tariffs as high as 50 per cent on certain Indian exports, Patrik Antoni, CEO, IKEA India noted, the company’s supply chain remains insulated, as its primary export volumes are directed toward European and Middle Eastern markets. By deepening local sourcing, the retailer aims to optimize cost structures and achieve full profitability within the next two fiscal years.
IKEA operates as a leading single-brand retailer specializing in affordable, sustainable home solutions. Since its 2018 Hyderabad debut, it has expanded to Mumbai, Bengaluru, and Delhi-NCR. With a long-term goal to quadruple sales, the brand focuses on localized product ranges and a robust B2B segment, which currently contributes 19 per cent of total revenue.
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