Chennai Sweden’s IKEA will more than
double its investment in India to over 200 billion rupees ($2.2
billion) in the next five years as the furniture retailer plans
to open more stores and increase sourcing locally, a top
executive said on Monday.
IKEA, which opened its first India store in 2018 in the southern
city of Hyderabad, will begin accepting online orders in four
other cities where it currently does not have a physical
presence, including Chennai and Coimbatore, in Tamil Nadu state.
“(India) is not a large IKEA country yet … But the belief
in India is very strong that it will be one of our top markets,”
said Patrik Antoni, CEO of IKEA India, in an interview with
Reuters.
The retailer’s India sales rose 6% to 18.61 billion rupees in
the year ended August 2025, and Antoni said it plans to
quadruple it, including by expanding store count to 30.
The company plans to start online operations before opening a
brick-and-mortar store in new cities — a first for IKEA globally
— as young consumers shop online more to beat traffic, said
Bhavana Jaiswal, country e-commerce integration manager.
IKEA will also double production for domestic stores and
exports to 800 million euros ($930 million), said Antoni.
IKEA’s move comes as global brands ramp up export production in
India to cut costs, while consumer majors from shoemaker Asics
to carmaker VinFast Auto also step up sourcing
to meet domestic demand.
U.S. President Donald Trump doubled tariffs on imports from
India to as much as 50% last year on some goods, forcing many
industries to find new clients in other countries.
Antoni, however, said it has not affected IKEA’s Indian
suppliers much, as the brand, which has most of its stores in
Europe, ships more to other markets.
Published on January 20, 2026
