IKEA is now in the process of putting together a plan outlining a second phase of investments in India. While how much investment will be made was not clarified but the company’s Deputy CEO and CFO at Ingka Group and IKEA, Juvencio Maeztu, divulged that it will be a big investment.
The company is seeing its growth double over the last year, with the aim of further doubling its business in India each year.
The company is now investing in Gurugram and Noida with two very big shopping centres. The Gurugram centre will hopefully come in less than two years, followed by Noida and then many more.
IKEA had set up a global operations centre in Bengaluru in 2020 and at the time said this would be the focal point for digital development, innovation and operations.
The next phase of investment might be utilized for sourcing, and manufacturing with retail and added services from the Indian market.
IKEA currently sources 30% locally in the country, with ambitions to take this to over 50%.
IKEA aims to expand its footprint further and establish more partnerships with Indian companies. IKEA currently collaborates with 65 suppliers in India, impacting around 500,000 workers in the supply chain.