Companies

Plans to expand its team strength to over 10,000 by 2030

Bengaluru, June 21

On the sidelines of the Bengaluru store launch, Susanne Pulverer, Chief Executive Officer and Chief Sustainability Officer at IKEA India, told BusinessLine that the Swedish company is targeting to increase its local sourcing from 27 per cent to 50 per cent in the coming years.

IKEA started its business in India in Hyderabad in 2018, followed by the launch of two stores in Mumbai and now a new store in Bengaluru. Recognising Karnataka as an important business market, IKEA has announced its long-term business commitment to the State.

“We have invested ₹3,000 crore in Karnataka, and have plans to open more stores in Bengaluru in the upcoming years. In India, we announced an total commitment of investment is ₹10,500 crore. That’s the budget we are working with, and we are still within that budget,” said Pulverer.

In terms of business so far, close to 100 million people from India are said to have visited IKEA, including both online and offline customers. Pulverer noted that IKEA sells 37 per cent of its products through online channels and 63 per cent via offline stores.

‘An important market’

When compared to other countries, IKEA’s business in India is still small, however, Pulverer expects it to catch up. “We are at the beginning of a long-term growth journey in India. When compared with countries like France and Germany, of course, we are very small. But nevertheless, India is an important market for us.”

The company also plans to expand its team strength in India from the present 3,000 to over 10,000 by 2030. Talking about IKEA’s business-to-business vertical, Pulverer said: “IKEA’s B2B segment already has reached a good share of the business; in fact, it is higher compared to our other segments.” With more stores lined up in Bengaluru and Mumbai, the Swedish furnishing brand plans to launch two big projects in Gurugram and Noida, which will come in partnership with IKEA’s sister company, Ingka Group.

Published on June 21, 2022