IKEA India is stepping up its expansion in Karnataka, with India CEO Patrik Antoni meeting Chief Minister DK Shivakumar to discuss new stores, local sourcing and developing a wider vendor base in the State.
Antoni also invited the Chief Minister to inaugurate IKEA’s upcoming second Bengaluru store at Konanakunte Cross, as the Swedish home furnishings retailer expands its physical footprint in India while simultaneously building out its online reach. The move comes as IKEA broadens its presence beyond its traditional large-format stores. The company recently expanded its presence in Delhi-NCR with a new 30,000 sq ft store, while it has also been relying on smaller formats and e-commerce to reach more customers.
IKEA currently has stores across seven locations in India — Hyderabad, Navi Mumbai, Worli in Mumbai, Bengaluru, Delhi and Pune. In Bengaluru, it operates its large-format store at Nagasandra and a Plan and Order Point at Whitefield. The company entered the Indian retail market in 2018, opening its first store in Hyderabad in August that year. It subsequently expanded into Navi Mumbai and Bengaluru with large-format stores, before adding smaller city-centre formats and expanding its omnichannel presence.
IKEA has set an ambition to have 30 stores in India by 2030, with smaller formats expected to play an important role in accelerating expansion. Antoni has previously said these formats require lower real-estate investment and allow the company to get closer to customers and open stores faster.
The retailer is also stepping up its capital commitment to India. IKEA plans to more than double its investment in the country to over ₹21,000 crore by 2030, with the additional investment expected to go towards stores, mixed-use developments, sourcing, technology and renewable energy.
growth in turnover
The company is targeting a four-fold increase in turnover to about ₹8,000 crore by 2030, from around ₹2,000 crore currently. Antoni had earlier told businessline that IKEA was seeing healthy double-digit growth in sales and store visits, and remained bullish on India because of its large consumer base, economic growth, and rapid urbanisation.
He added that reaching the 2030 sales target would require IKEA to grow its existing stores while continuing to add new ones.
At the same time, the retailer is widening its sourcing ecosystem in India. IKEA has been sourcing from the country for nearly four decades and currently works with around 65 suppliers, according to the company. It is also expanding online deliveries in northern India, covering Delhi-NCR and cities including Agra, Prayagraj, Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana and Varanasi.
For Karnataka, the expansion is therefore not limited to adding another retail outlet, but also forms part of IKEA’s broader push to deepen local sourcing and develop suppliers as it scales its India business.