IKEA to Boost India Sourcing from 30% to 50%, Eyes Global Exports

Swedish home décor giant IKEA plans to increase local sourcing in India from 30% to 50% for its domestic retail business while also scaling from India for global operations, a top official of the company said.

The move is expected to support both local and global operations, while also creating more employment opportunities across the supply chain, said Christina Niemela Strom, Head of Sustainability for supply at InterIKEAGroup.

India is currently among the top 10 sourcing countries for IKEA, with the company procuring goods worth approximately 400  million euros annually for its global retail operations, Storm told PTI in an interaction.

IKEA’s sourcing portfolio from India currently includes textiles, plastics, and metals, and the company plans to expand this basket by adding more product categories.

“Our goal is to expand our sourcing from India to include more product categories such as sofas, mattresses and storage furniture”, said Christina Niemela Storm.

She added that inter IKEA group has designed as a focus market this year, with plans to increase local sourcing from the current 30% to 50%.“ "We aim to develop products in India not only for the local market but also for our global customers, while contributingto job creation across the supply chain", she said.

Currently, Europe remains IKEA’s largest sourcing region, followed by America and Asia, with China being the leading supplier in the Asian market.

IKEA’s association with India dates back over five decades through sourcing activities, even though its retail presence in the country began only in 2018 with the opening of its first store in Hyderabad. This was followed by openings in Navi Mumbai and Bengaluru, with more locations, such as in the Delhi NCR region, currently in the pipeline.

“We have a love affair with India” said Christina Niemela Strom, head of sustainability for supply at Inter IKEA Group. 

Storm emphasised that IKEA is committed to India for the long term and holds strong confidence in the country’s potential. “We have suppliers, we’ve partnered with since the very beginning,” she noted.

She further added, “We’re here to grow together. IKEA’s growth in India is closely tied to the country’s own development and progress.”

Ikea is actively working with over 1.10 lakh farmers in India to promote sustainable cotton sourcing. The initiative focuses on encouraging practices that reduce the use of pesticides, fertilisers and water.

“These method not only benefit the environment but also lead to higher yields for farmers, resulting in increased income”,said Christina Niemela Storm, Head of Sustainability for Supplyat Inter IKEA Group. “For us, sustainability is not about adding cost- it actually leads to better products and shared value.”

In terms of employment, IKEA’S supply chain in India supports nearly 1,00,000 co workers at direct supplier facilities ,and around 2,70,000 individuals at tier-2 suppliers.

“Today more than 1,10,000 farmers have adopted sustainable farming techniques through IKEA- led initiatives ,” Storm added. “All cotton we use is virgin cotton certified under our approved sustainability schemes .”

She also reaffirmed IKEAS climate commitments,stating that the company aims to cut its emissions by half by 2030 and achieve net-zero status by 2050.

Inter IKEA group serves as the backbone of the global IKEA ecosystem .It connects franchisees with product range development ,suppliers,and industrial operations,whole steering the overall strategic direction . The group includes inter Ikea systems B.V. ,the global IKEA franchisor ,and is responsible for supply chain management and product innovation.

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