IKEA to set up more manufacturing facilities in India

1 min readUpdated May 19, 2025Feb 23, 20151:00 AM

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Swedish furniture retailer IKEA will set up more manufacturing facilities in India and has plans to increase production in the country, its top official has said.

In a meeting with the Department of Industrial Policy & Promotion (DIPP) Secretary, Amitabh Kant, on Wednesday, IKEA India CEO Juvenico Maetzu shared the company’s plans for India.

While IKEA is yet to open its stores in India, it has already announced its plan of investing INR12,500 crore (INR125 billion, USD2b) in the country and set up 25 stores over the next ten years.

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What this means

IKEA's decision to expand manufacturing facilities in India before opening its first store is a proactive strategic move, designed to secure a cost-efficient supply chain and mitigate import duties. This aggressive localisation strategy, supported by a significant INR12,500 crore investment for 25 stores, will put considerable pressure on local furniture retailers and other international players eyeing the nascent Indian market. By committing to local production from the outset, IKEA aims to avoid the logistical and pricing challenges faced by many overseas brands in Asia. This bold approach, distinct from its typical market entry where stores often precede major production, indicates a strong intent to lead. Watch for specific factory announcements and initial product pricing to gauge market impact.

Aiko Tanaka

Questions & Answers

Which government department was IKEA's CEO meeting with about their expansion plans?

IKEA India CEO Juvenico Maetzu met with the Secretary of the Department of Industrial Policy & Promotion (DIPP) to discuss the company's intentions for increasing manufacturing and production within the country.

What is IKEA's total investment commitment for India and how many stores do they plan to open?

IKEA has announced a plan to invest INR12,500 crore, equivalent to INR125 billion or USD2 billion, in India. They aim to establish 25 new stores across the country over the next decade.

Has IKEA already started operating retail stores in India?

No, IKEA has not yet opened any retail stores in India. Despite this, the company has already outlined significant investment and expansion plans for manufacturing and future store openings.

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