7 days ago
Ikea plans to scale up India sourcing
Swedish home décor and furniture brand Ikea is set to increase its local sourcing in India from 30% to 50% for its domestic retail operations, a move that positions the country as a critical hub in the company's global supply chain and retail expansion plans.
'India is a focus market for us,' said Ikea's head of sustainability for supply at Inter Ikea Group Christina Niemel Ström, Indian Retailer Bureau reported. Ström added that the scale-up would support both local retail growth and employment generation across the value chain.
India currently ranks among Ikea's top ten sourcing markets, contributing around € 400 million annually in exports. The current sourcing portfolio includes textiles, plastics, and metals, with upcoming expansion into sofas, mattresses, and storage furniture.
'We aim to increase local sourcing, create products in India for both domestic and global customers, and drive job creation across the supply chain,' said Ström. Ikea, which has sourced from India for over 50 years, entered the Indian retail market in 2018 and now operates stores in Hyderabad, Navi Mumbai, and Bengaluru, with new locations planned for Delhi NCR, ET Retail previously reported.
Ikea's supply operations in India currently involve nearly 3.7 lakh workers, including those at Tier 2 supplier levels. The company also promotes sustainable cotton farming through partnerships with over 1.1 lakh farmers.
