IKEA expands sourcing and digital procurement across India

National Procurement is at the centre of IKEA’s decision to more than double its long-term investment in India, reinforcing the country’s role as a critical sourcing and production base within the Swedish group’s global supply network.

IKEA, the Sweden-based home furnishings retailer and manufacturer, plans to invest more than ₹20,000 crore (€2.2bn) in India over the next five years to expand its store footprint and increase local sourcing. The company opened its first Indian store in Hyderabad in 2018 and is now accelerating its national procurement and distribution strategy.

Alongside physical expansion, IKEA will begin accepting online orders in four additional cities where it does not yet operate stores, including Chennai and Coimbatore. The digital-first approach marks the first time IKEA has launched e-commerce in new markets ahead of opening physical locations, aligning procurement, fulfilment and last-mile logistics with changing consumer behaviour.

“(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 IKEA India Chief Executive Officer Patrik Antoni.

IKEA’s India sales rose 6% to ₹1,861 crore (€210m) in the year ended August 2025. Antoni said the company plans to quadruple revenues, including by expanding the number of stores to 30 nationwide. Central to this growth is procurement scale.

IKEA will double production for domestic sales and exports to €800m, strengthening India’s position as a sourcing hub supplying both local stores and overseas markets.

The expansion comes as global brands increase procurement and export manufacturing in India to manage costs and diversify supply chains. While higher US tariffs on Indian imports have affected some sectors, Antoni said IKEA’s suppliers have been largely unaffected due to the company’s strong European demand base.

The investment underscores how multinational procurement strategies are increasingly shaped by localisation, supplier capacity and digital distribution, with India emerging as a cornerstone market for long-term sourcing resilience.

See the details for deeper insight into IKEA’s procurement strategy and supplier expansion plans.