IKEA’s global CEO says the company would decide on its next phase of investment in India by the end of 2024

“My team will get back to you, at least this year,” I can assure you. In an exclusive interview with CNBC-TV18’s Shereen Bhan, Global CEO Jesper Brodin said, “Once more, we have a few discussion points with officials and with representatives of governments to make sure that we gain enough confidence to say, we are ready to take the next step of investment.”

When IKEA entered the Indian market over ten years ago, it committed to investing Rs 10,500, and Brodin is sure that the company will exceed that amount. “I promise you, it is a number you will like,” he remarked in reference to the next investment tranche.

The Indian government granted the Swedish corporation permission in 2013 to spend Rs 10,500 crore over a ten-year period to establish retail infrastructure, including 10 outlets.

At the moment, India permits 100% foreign direct investment (FDI) via the automatic method in single-brand retail commerce. Nonetheless, international businesses that invest more than 51% of their total capital in the nation must source at least 30% of the items they buy domestically.

2018 saw the opening of IKEA’s first location in Hyderabad, followed by locations in Bengaluru and Mumbai. Its new shop is now being built in the National Capital Region (NCR) in Gurugram.

In order to accelerate its next phase of expansion, the business will be experimenting with new client acquisition strategies. “Our long-term goal is to open IKEA stores in all major cities and then grow our business across all channels in India to reach as many people as we can,” Brodin said.

Establishing small shops with the goal of bringing stores closer to city centers is one of IKEA’s primary strategies in India.

Recently, the company expanded its reach into 62 new areas in the states of Maharashtra, Karnataka, Andhra Pradesh, and Telangana by introducing doorstep delivery services. In India, the company’s own website and app account for one-fourth of its total revenues. Additionally, it intends to launch the Shop by Phone support service shortly.

According to RoC filings, IKEA India’s sales increased by 61% to Rs 1,768 crore in the fiscal year 2023 (FY23).