IKEA Targets Fourfold Revenue Growth in India by 2030, Plans ₹21,000 Crore Investment

Swedish home-furnishing retailer IKEA plans to quadruple its revenue in India by 2030 as it accelerates store expansion, strengthens online sales and increases local sourcing. The company intends to invest more than ₹21,000 crore in the country by the end of the decade and expand its network to 30 stores, according to statements by IKEA India chief executive Patrik Antoni. The retailer is also targeting profitability in the 2027–28 financial year, provided global economic conditions remain supportive.

The expansion marks a major step in IKEA’s long-term strategy for India, where the company opened its first store in Hyderabad in 2018. Its sales reached ₹1,861 crore in the year ended August 2025, according to Reuters, giving the retailer a growing base from which to pursue its next phase of expansion. IKEA plans to combine large stores with smaller formats, online ordering, local manufacturing and sourcing, and investments in technology. The challenge will be to grow sales quickly enough to support the cost of expanding across a large and diverse consumer market.

Key Takeaways

• Revenue target: IKEA aims to quadruple its India revenue by 2030, targeting annual turnover of approximately ₹8,000 crore.
• Investment plan: The retailer plans to invest more than ₹21,000 crore in India by 2030.
• Store expansion: IKEA aims to increase its Indian store network to 30 locations, using a mix of large, medium and small formats.
• Profitability goal: The company expects to become profitable in FY28, subject to supportive global conditions.
• Local sourcing: IKEA intends to expand sourcing and production in India for domestic sales and exports.
• Online-first expansion: The retailer plans to serve additional cities online before establishing physical stores in some markets.
• Consumer strategy: IKEA is adapting its store formats and product offerings to local shopping habits, housing conditions and customer preferences.

IKEA’s ₹8,000 Crore Revenue Ambition

IKEA’s target of quadrupling its India revenue by 2030 reflects its belief that the country can become a substantially larger market for the global home-furnishing retailer.

The company has set an annual turnover target of around ₹8,000 crore by the end of the decade. This represents a significant increase from its reported sales of ₹1,861 crore for the year ended August 2025.

The revenue target is a management ambition rather than a guaranteed outcome. Reaching it will require IKEA to expand its customer base, increase sales through existing stores, enter new markets and improve the performance of its online channels.

India offers a large potential customer base, but the opportunity is not uniform across the country. Household purchasing power, housing sizes, shopping preferences and access to organized retail differ between cities and regions. IKEA will need to adapt its product range, pricing, delivery services and store formats to these differences.

The company’s growth strategy therefore involves more than opening additional large stores. It is seeking to make its products accessible to consumers who may live far from its existing locations or prefer shopping online.

What would fourfold growth require?

Quadrupling revenue over the period to 2030 implies sustained expansion over several years. The required annual growth rate depends on the precise starting year and the revenue base used for the target.

The retailer can pursue growth through several channels:

• Opening new stores and reaching additional cities.
• Increasing sales at existing stores.
• Expanding online ordering and delivery.
• Offering products suited to different home sizes and budgets.
• Increasing the availability of locally sourced products.
• Building awareness among consumers who have limited access to IKEA stores.

These channels can reinforce one another. Online availability can introduce the brand to consumers before a physical store opens, while smaller stores can provide product displays, planning services and customer support closer to residential areas.

However, growth also brings costs. New stores require investment in property, inventory, staffing, technology and distribution. The pace of expansion will need to balance revenue ambitions with operating efficiency.

IKEA Plans to Invest More Than ₹21,000 Crore by 2030

IKEA intends to increase its total investment in India to more than ₹21,000 crore by 2030. The company had previously committed approximately ₹10,500 crore when it received approval for single-brand retail operations in India in 2013. Company statements indicate that this earlier commitment has already been met or committed, and IKEA now plans to more than double its investment.

The additional investment is intended to support its physical retail presence, local sourcing, technology capabilities and other operations. The broader plan is designed to build a business capable of serving more Indian customers while also strengthening the role of India in IKEA’s supply chain.

The investment figure should be understood as a multiyear commitment and expansion plan, not money that will necessarily be spent in a single financial year. The timing and allocation of expenditure will depend on individual projects and operational requirements.

IKEA’s plans also involve different types of infrastructure. Traditional stores remain important, but the company is considering smaller formats and mixed-use developments that combine retail with other services and activities.

The retailer has also been investing in online operations, distribution and local sourcing. These capabilities can help it reach customers in cities where the economics of a large-format store may be less attractive.

IKEA Targets 30 Stores Across India

A central part of IKEA’s expansion plan is increasing its store network to 30 locations by 2030. The retailer is considering a mix of large, medium and smaller stores rather than relying exclusively on its biggest outlets.

Large-format stores offer a broad product range and allow customers to experience furnished rooms, kitchens, storage solutions and other home products in one place. However, they typically require substantial investment in real estate and supporting infrastructure.

Smaller stores can offer a different model. By leasing existing commercial space and focusing on selected products, displays, planning services or customer experiences, IKEA may be able to enter new markets more quickly and with less capital tied up in property.

The company has identified smaller formats as a way to bring the brand closer to customers and accelerate expansion. The final mix of formats will depend on the size of each market, customer demand and the availability of suitable locations.

Why smaller stores matter

India’s major metropolitan areas have different shopping patterns, traffic conditions and housing markets. Travelling to a large retail destination may be inconvenient for some consumers, particularly those living far from existing stores.

Smaller locations can improve accessibility and make it easier for customers to explore products or receive advice before completing a purchase. They can also complement online channels by allowing shoppers to see materials, compare sizes and understand how furniture may fit into their homes.

This approach could help IKEA expand its reach without replicating the full investment requirements of every large-format outlet. Nevertheless, smaller stores will need clear commercial roles and sufficient customer demand to justify their operating costs.

Online Sales Will Help IKEA Enter New Cities

IKEA is also using online sales to reach customers before opening physical stores in some markets. The company has previously outlined plans to begin accepting online orders in additional Indian cities, including Chennai and Coimbatore.

The approach gives IKEA a way to test demand and establish customer relationships without immediately committing to a large retail property. Online availability can also help the retailer reach consumers in surrounding areas who may not have convenient access to an existing store.

This strategy requires reliable delivery networks, accurate product information, accessible customer support and effective returns management. Furniture and home-furnishing products can be more complicated to deliver than small consumer goods because of their size, assembly requirements and the need for scheduled delivery.

IKEA’s online operations must therefore work closely with warehousing and transportation systems. If customers cannot receive products on time or find delivery costs too high, the convenience of online ordering may be undermined.

The company’s strategy combines digital reach with physical retail rather than treating the two channels as alternatives. Online shopping can help customers discover products and compare options, while stores can provide inspiration, planning support and opportunities to examine products in person.

Local Sourcing and Manufacturing Are Important to the Plan

IKEA’s India strategy also involves expanding local sourcing and production. Greater sourcing within the country can help the retailer work with Indian suppliers, improve access to selected products and support its domestic business.

The company has previously indicated plans to increase production in India for domestic sales and exports. Local sourcing can provide commercial advantages, but it also requires suppliers to meet IKEA’s quality, cost, sustainability and delivery requirements.

Furniture and home-furnishing supply chains include a wide range of products and materials, from wood-based furniture and textiles to kitchen accessories, lighting and storage products. Each category can have different manufacturing capabilities and sourcing requirements.

Developing reliable local suppliers takes time. Companies may need to invest in equipment, quality control, workforce training and production processes to meet the retailer’s standards. IKEA must also balance local sourcing with its global procurement network and the availability of products from other markets.

For India, stronger sourcing relationships could create opportunities for manufacturers and suppliers. The extent of the benefit will depend on how much production is localized, the number of suppliers involved and whether Indian manufacturing remains competitive in cost and quality.

Can IKEA Become Profitable by FY28?

IKEA has said it expects to become profitable in India during the 2027–28 financial year, provided global conditions stabilize. The target comes as the company continues to invest in stores, digital capabilities and supply-chain infrastructure.

Expansion can make profitability difficult in the short term. New stores incur setup and operating costs before reaching mature sales levels, while distribution networks and technology systems require investment to support growth.

IKEA’s profitability target will depend on revenue growth, product margins, staffing and property costs, delivery expenses and the pace at which new locations begin generating sufficient sales.

The company’s existing store network provides a base for growth, but it will need to improve productivity as it expands. Better inventory planning, efficient sourcing and stronger online fulfilment could help support margins.

The reference to global conditions is also important. Exchange rates, international supply chains, freight costs and broader economic uncertainty can affect retailers operating across multiple countries. A weaker or more volatile global environment could influence sourcing expenses and investment decisions.

The profitability goal should therefore be viewed as a target rather than a confirmed outcome. IKEA will need to demonstrate that its expanding revenue can cover both the ongoing cost of running its stores and the investment required to build a larger network.

India’s Home-Furnishing Market Offers Both Opportunity and Competition

India’s home-furnishing market includes organized retailers, regional furniture businesses, independent manufacturers, online marketplaces and local carpenters. Customers can choose between ready-made furniture, customized products and services that adapt furniture to individual homes.

IKEA’s international brand, standardized product range and room-planning approach give it a distinct position, but it must compete on more than brand awareness. Price, product durability, delivery availability, assembly, customization and after-sales service can all influence buying decisions.

Indian homes also vary widely in size and layout. Products designed for one market may need adjustments to suit local living arrangements, storage needs and consumer preferences. IKEA has emphasized that understanding how Indian households make decisions about furniture and home products is important to its growth strategy.

The company is also working to reach consumers who may not have previously considered its products. Online sales and smaller retail formats could help it reach a broader customer base, while a wider selection of price points may improve accessibility.

At the same time, growth in the overall home-furnishing market does not guarantee success for any individual retailer. IKEA must convert customer interest into repeat purchases and profitable sales while managing the cost of delivering large or bulky products across a geographically extensive market.

The Bigger Picture

IKEA’s plan reflects a broader effort by international retailers to expand in India as consumer spending, urban development and demand for organized retail evolve. The combination of a ₹21,000 crore investment plan, a 30-store target and greater use of online sales shows that the company is pursuing multiple routes to growth rather than depending exclusively on large stores. Local sourcing could also help connect its Indian operations with domestic manufacturers and strengthen its supply chain.

The strategy carries execution risks. Expanding too slowly could make it difficult to reach the revenue target, while opening stores faster than demand develops could increase costs and delay profitability. The company will need to balance customer access, product pricing, delivery quality and capital spending as it moves into new markets. Its ambition to quadruple revenue by 2030 is substantial, but the outcome will depend on how effectively IKEA adapts its global retail model to Indian customers and builds a profitable operation.

Looking Ahead

The next phase of IKEA’s India expansion will be measured by progress toward new stores, online availability in additional cities, supplier development and improvements in sales from existing locations. The company’s profitability target for FY28 will be an important milestone, although the result will depend on revenue growth, operating costs and wider economic conditions. Updates on store openings, local sourcing and financial performance should provide a clearer picture of whether the expansion is progressing at the pace required.

By 2030, IKEA aims to have a substantially larger retail footprint and annual turnover of around ₹8,000 crore. Achieving that goal will require sustained demand and disciplined execution across physical stores, digital channels and supply-chain operations. The planned investment demonstrates the company’s commitment to India, but its long-term success will ultimately depend on whether it can turn that spending into accessible products, repeat customers and sustainable profitability.