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Swedish furniture giant Ikea is set to launch e-commerce operations in Delhi-NCR, nearly seven years after entering the Indian market, reported The Indian Express. The company will introduce online delivery services through a strategic partnership with Germany-based Rhenus Logistics, using its 1.5 lakh square feet warehouse in Gurugram.
Currently, Ikea’s e-commerce operations are limited to four states — Andhra Pradesh, Karnataka, Maharashtra, and Telangana — where it also has an offline presence. The upcoming launch in Delhi-NCR marks a significant milestone, as it will extend Ikea’s reach beyond its existing retail hubs in Hyderabad, Bengaluru, Mumbai, and Navi Mumbai.
Its offline presence in Delhi-NCR will follow soon, with two stores under construction in Gurugram and Noida. However, the company will roll out online delivery services first, ensuring that customers in the region can start shopping before the physical stores open.
Delhi-NCR: A key market for Ikea’s growth
India’s furniture industry has witnessed rapid growth, and Delhi-NCR has emerged as a major demand centre. In a statement last year, Rhenus Logistics highlighted the region’s significance:
“India is currently the world’s fourth-largest furniture market, rising rapidly from tenth place 10 years ago. Delhi-NCR, with its strong demand for premium real estate in areas like Gurugram, Noida, and Delhi, is an ideal location for Rhenus India’s expertise in supply chain solutions. Our goal is to help Ikea fulfill online orders within 24 hours.”
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The collaboration with Rhenus Logistics, a global supply chain expert, is expected to enhance Ikea’s efficiency in last-mile delivery, warehousing, and customer fulfillment.
Ikea’s physical stores in Delhi-NCR
The first offline store in the region is expected to be Ikea Gurugram, featuring a massive 4 lakh square feet space and a 1,000-seater restaurant offering both Indian and Swedish delicacies. Meanwhile, construction for Ikea Noida began in September 2023, with Uttar Pradesh Chief Minister Yogi Adityanath laying the foundation stone.
Strengthening supply chain with Rhenus Logistics
Earlier, in May 2024, Ikea confirmed its long-term partnership with Rhenus Logistics to strengthen its supply chain infrastructure. Rhenus announced plans to establish a 1.5 lakh square-foot warehouse in Gurugram, designed to store and fulfill over 7,000 products. This facility will enable doorstep delivery and 24-hour order fulfillment.
Ikea’s India Country Customer Fulfillment Manager, Saiba Suri, expressed confidence in the collaboration: “Our collaboration with Rhenus transcends decades. Bringing their expertise and experience in growing Ikea in other global markets to our operations here is an exciting opportunity for both in our India journey.”
Rhenus India’s Regional CEO, Vivek Arya, also emphasised the project’s impact: “As we expand our partnership from a European base to a global scale, our journey with Ikea is a testament to our shared commitment to excellence, innovation, and sustainability. This new warehousing project in India is not just an expansion of our operations but a bold step towards a more inclusive and diverse global presence.”
Ikea’s investment plans in India
Ikea’s entry into India began in 2018 with its first store in Hyderabad. Since then, it has opened large-format stores in Hyderabad, Navi Mumbai, and Bengaluru. The Delhi-NCR expansion is part of Ikea’s Rs 10,500 crore investment commitment in India for its first 10 years of operations.
Susanne Pulverer, CEO of Ikea India, reaffirmed the company’s long-term vision: “We are looking at the next level of investment to further build Ikea’s presence in India, to expand volumes and increase sourcing.”
Looking beyond Delhi-NCR, Ikea is eyeing further expansion in Pune and Chennai, with Kolkata also on its radar for future projects. However, the company plans to take a stepwise approach in its expansion strategy.
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