Home / Knowledge / News / Textiles / Ikea's product sourcing from India to double by 2020
Ikea's product sourcing from India to double by 2020
Apr '17
Courtesy: Ikea
Courtesy: Ikea
Ikea, the global home furnishing giant from Sweden, plans to double product sourcing from India to €600 million by 2020. The company, with current sourcing of worth €318 million from India, is setting up a second store in the country in Navi Mumbai while its first store is opening in Hyderabad. Maharashtra is expected to have Ikea's five-six stores.
The work on Ikea's second store in Navi Mumbai is expected to begin in May 2017. The store is being set up with an investment of about Rs 700 crore, according to a news agency report. The store is expected to be operational by the middle of 2018. The company is also in the process of identifying sites in Delhi-NCR, Bengaluru, Tamil Nadu and Gujarat.
Ikea plans to open 25 stores in India by 2025 with an investment of Rs 10,500 crore, the report said.
"Ikea works on the principle of optimal sourcing for our global markets. Where it makes sense, we will source locally as well. We currently source products worth €318 million from India and will almost double this by 2020 to around €600 million," Henrik Gunnerling, purchase development manager, Ikea range and supply, told the news agency in Sweden.
"Maharashtra will be one of the key markets for us, and we have plans to open 5-6 stores across the state, going forward," Patrik Antoni, deputy country manager for Ikea India, told the agency. "We are also planning to open a large distribution centre in Pune," he added. 
Ikea had purchased 23 acres in Mumbai last year to set up its store. The Navi Mumbai store will have over 9,500 home furnishing products and an in-store restaurant. Ikea's first store will come up in Hyderabad later this year. 
Every Ikea store will hire 500-700 direct co-workers and another 1,500 for providing services around the store. It has also committed that 50 per cent of its workforce will be women, according to the report.
India's modern retail policy requires 30 per cent local sourcing, preferably from small enterprises. "India has a lot of potential. We have about 50 suppliers at present and have added 15 last year," Sandeep Sanan, new business manager, purchasing operations for Ikea South Asia, said.
About 70 per cent of Ikea's exports from India are textiles while the rest comprises items like sofas, mattresses, and kitchen accessories. Ikea is also looking at sourcing different kinds of wood for its furniture, including sustainable materials like bamboos and acacia, Sanan said. (SV)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Trinity Kubassek from Pexels

Textiles | On 19th Aug 2018

Australian wool production to fall 5.7% in 2018-19

Shorn wool production in Australia is likely to fall by 5.7 per cent...

Courtesy: Next Level Apparel

Apparel/Garments | On 19th Aug 2018

Blue Point Capital recapitalises Next Level Apparel

Blue Point Capital Partners has recapitalised Next Level Apparel, a...

Retailers approaching 100% inventory accuracy: Study

Apparel/Garments | On 19th Aug 2018

Retailers approaching 100% inventory accuracy: Study

With computer vision use cases maturing, Artificial Intelligence (AI) ...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Pierre Wiertz

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search