Ikea plans to raise its local sourcing in India to 50 percent from the current 30 percent for its domestic retail operations. The company also sources approximately EUR 400 million worth of products annually from India for its global supply chain.
The move is aimed at expanding Ikea’s supply capabilities for both domestic and international markets. The sourcing basket currently includes textiles, plastics, and metals, and the company intends to add categories such as sofas, mattresses, and storage furniture.
“Inter Ikea Group has identified India as a focus market this year and we aim to increase local sourcing, create products from India to cater to local and global customers and generate more jobs across the supply chain,” said Christina Niemel Ström, Head of Sustainability for Supply at Inter Ikea Group.
India is among the top 10 sourcing countries for Ikea. The company has been sourcing from India for over five decades. Its retail presence in the country began in 2018 with the opening of a store in Hyderabad, followed by locations in Navi Mumbai and Bengaluru. Additional outlets in Delhi NCR are under development.
Ikea works with approximately 110,000 farmers in India to promote sustainable cotton farming, focusing on reducing the use of pesticides, fertilisers, and water. “More than 1,10,000 farmers have adopted more sustainable farming practices within Ikea projects. The cotton used at Ikea comes from virgin cotton certified by our approved schemes,” said Ström.
Ikea’s supply operations in India involve close to 100,000 coworkers at direct suppliers and around 270,000 at tier 2 suppliers. The company aims to halve its emissions by 2030 and achieve net-zero status by 2050.
Inter Ikea Group connects Ikea franchisees with product development and supply chain functions. It includes Inter Ikea Systems BV, which is the global franchisor, along with range development, supply, and select industrial operations.