IKEA India plans to accelerate local sourcing to gradually reach 50 per cent of all products, which is as of now around 25 to 27 per cent. While the company saw its losses widen in FY ’21, it is working on becoming profitable by increasing its local sourcing.
As per media reports, due to rising inflation, IKEA India has increased the price of some of its products, while also absorbing the high inflation costs on other products.
Susanne Pulver, CEO of IKEA India, said “We are trying to absorb as much as we can. We have also made some adjustments. We were always striving to be affordable in order to protect lower prices in each segment, function and category.”
The company, with a planned investment of Rs. 6,000 crore, is opening its fourth store in India, which will be third in Mumbai. Spread across 72,000 sq. ft., this store will offer over 7,000 home furnishing products.
The Mumbai store will be IKEA’s fifth operational store in the country.
On the expansion, Pulver said, “I’m taking the next step and we are now reviewing our expansion strategy. We know we can do a lot more in the cities where we have opened — Hyderabad, Bengaluru and Mumbai. We are planning for Delhi and we have big projects. And then, we are looking into what can be beyond that. That is work in progress.”
