IKEA India CEO Patrik Antoni confirmed on Monday that the company is significantly ramping up its presence. While India is not yet a “large IKEA country,” the parent company, Ingka Group, believes it will eventually become one of its top global markets.
The “Digital First” Strategy: A Global First for IKEA
In a major departure from its traditional model, IKEA is launching an “Online Before Offline” approach in India.
- New Markets: Online deliveries have officially launched in Tamil Nadu, covering cities like Chennai, Coimbatore, Madurai, and Salem.
- The Logic: To reach younger, tech-savvy consumers who prefer to avoid urban traffic, IKEA will now accept online orders in new cities before building a physical store.
- Fulfillment: Orders for Tamil Nadu will initially be fulfilled through the existing Bengaluru distribution hub, with 100% of last-mile deliveries utilizing Electric Vehicles (EVs).
Ambitious Growth Targets (2026–2030)
IKEA has set high benchmarks to justify this $2.2 billion investment:
| Metric | Current Status (Jan 2026) | 2030 Target |
| Store Count | 6 (Hyd, Mum, Bang, Delhi) | 30 Stores |
| Annual Sales | ₹1,861 Crore (FY25) | ₹7,440 Crore (4x Growth) |
| Online Sales Share | ~30% | Expected to Increase |
| Production Value | €400 Million | €800 Million ($930M) |
Boosting Local Sourcing and Exports
Beyond retail, IKEA is doubling its manufacturing footprint in India.
- Sourcing: The company aims to double production for both domestic stores and exports to $930 million.
- Tariff Resilience: Despite recent U.S. tariff hikes on Indian goods, Antoni stated that IKEA’s suppliers remain unaffected as the majority of Indian-made IKEA products are shipped to the European market.
- Sustainability: As part of a separate ₹1,000 crore commitment, Ingka Investments is launching a 210 MWp solar park in Rajasthan to power its operations with 100% renewable energy by the end of 2026.
Financial Context: Path to Profitability
While sales grew 6% in FY25, the focus is now on the bottom line.
- EBITDA: Improved by 12% in the last fiscal year.
- Profitability Goal: CEO Patrik Antoni expects IKEA India to turn profitable by FY27, as the scale of new stores in Pune, Chennai, and Delhi begins to offset the initial high infrastructure costs.
Conclusion: A New Blueprint for Indian Retail
IKEA’s decision to double its investment signals a shift in the global retail landscape. By combining its massive physical “experience centers” with a nimble, e-commerce-led entry into Tier 2 cities, IKEA is attempting to solve the logistical challenges that have hampered other global retailers in India. For Indian consumers, this means the “blue box” stores—and their signature meatballs—are about to become much more accessible.
