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Juvencio Maeztu, Deputy CEO, Management Board member, and CFO of Ingka Group (IKEA), shared insights into IKEA's ambitious expansion plans for India. Maeztu revealed that the company will soon launch online sales in the Delhi NCR region as part of its strategy to expand to 62 new cities across the country.
Sourcing is a key part of IKEA’s growth strategy in India. The company currently sources 30% of its products locally, with plans to increase that figure to 50%.
"We are sourcing 100% of the food range, which is fantastic. And we are now determined to go to the 50% now. And we are working now in the good discussion with conversation with the government, to try to have harmonized standard so we can produce more in India, so we can both use for domestic consumption, but we can export more from India," Maeztu noted.
In terms of sustainability, Maeztu also highlighted IKEA’s efforts to reduce its environmental impact, with 90% of deliveries in cities like Pune, Hyderabad, and Bangalore made using electric vehicles. The company is also on track to achieve 100% renewable energy usage in its Indian operations this year.
"We are building, as we speak, two very big shopping centers, one in Guru Granth and the other one in Noida. And this big shopping center will have an IKEA store. It's already under construction, this exciting project, and we will soon open online sales of IKEA in Delhi NCR as well," Maeztu said.
Additionally, IKEA is scouting for new locations to open physical stores in states like Karnataka, Maharashtra, and Tamil Nadu, complementing its existing stores in Mumbai, Hyderabad, and Bangalore.
Maeztu emphasised IKEA’s long-term commitment to India, stating that the company is focused on creating affordable, sustainable living solutions for consumers. “We are investing in setting the conditions for long-term affordability in India,” he said. He also highlighted that more than 30% of IKEA’s sales in India now come from e-commerce, and the company aims to expand its online presence significantly.
Source: CNBC-TV18
