Ikea to increase investment as it expands retail presence in India

New Delhi: Swedish home furnishings retailer Ikea will increase its investment over the coming years as it looks to expand its presence in India, according to its India CEO Patrik Antoni.

Speaking at an event in Chennai to mark the launch of Ikea’s online sales in Tamil Nadu, Antoni said the company was entering the second phase of its India expansion. This phase will include the rollout of several smaller stores, typically ranging between 2,000 and 5,000 square feet, alongside large-format and city stores.

“We will more than double our investments in the coming years,” Antoni said at a press conference on Monday.

In 2013, the Indian government approved a Rs 10,500 crore foreign direct investment proposal by Ikea to set up 10 stores and allied infrastructure over a 10-year period. The company had subsequently indicated plans to open 15 additional stores. At present, 100% foreign direct investment is permitted under the automatic route in single-brand retail trading.

Ikea currently operates three large-format stores in Hyderabad, Navi Mumbai and Bengaluru, as well as two city stores in Worli and New Delhi. The company is also investing around Rs 7,000 crore to enter the National Capital Region with two stores planned in Gurugram and Noida. With these investments,

Ikea’s FDI commitment has nearly reached the originally approved level.

Last year, former Ikea India head Susanne Pulverer told PTI, “We have exhausted the Rs 10,500 crore, and we are looking at the next level of investment to further build IKEA presence in India, to expand volumes and increase sourcing”.

The company is also focusing on profitability. In FY25, Ikea India reported a 6% increase in sales, with annual revenue reaching Rs 1,860.8 crore for the period from September 2024 to August 2025. During the same financial year, 110 million customers visited Ikea India across its physical stores and online platforms.

Ikea has now extended online deliveries across cities in Tamil Nadu.