Ikea plans to invest nearly ₹11,000 crore in India by 2030 to open 25 new stores and boost local operations. The Swedish retailer is also developing large-scale retail hubs in Gurugram and Noida, aiming to move beyond its existing footprint. This follows a fully realized initial investment commitment of ₹10,500 crore, reflecting the company's long-term focus on the Indian consumer market.
Swedish home furnishings retailer Ikea has announced a major capital spending plan for India, committing nearly ₹11,000 crore to expand its footprint by 2030. This strategy focuses on a mix of 25 new retail outlets and significant real estate development. The company plans to use a flexible store model, with about a quarter of these new locations being large-format stores, while the rest will be smaller, city-center units ranging from 20,000 to 70,000 square feet.
Retail and Office Complexes in North India
A key part of this investment involves the Ingka Group, the primary operator of Ikea stores, which is spending over ₹7,500 crore to construct two large mixed-use developments. These projects, located in Gurugram and Noida, will combine retail shopping, office spaces, and dedicated Ikea stores. According to the company's update, the Gurugram center is scheduled for completion in 2027, followed by the Noida facility in 2028. These developments mark a shift toward integrated retail hubs, moving beyond standalone store models.
Sales Growth and Future Outlook
Ikea reported revenue of ₹1,860 crore for the fiscal year 2025, representing a 6% growth. While this growth was modest, the company has expressed expectations for stronger double-digit performance in the current fiscal year. The new investment follows the successful completion of an initial ₹10,500 crore commitment approved back in 2013. That earlier capital was utilized to build the company’s existing store network, a solar farm, a Global Capability Centre, and local IT operations.
Strategic Focus and Next Steps
Beyond new store openings, the company is looking at ways to make better use of its existing land bank in cities like Hyderabad, Bengaluru, and Mumbai. This may involve forming joint ventures or exploring development rights to maximize land value. Because Ikea remains a private entity, its expansion is financed through its own capital or parent-group funding, which reduces the immediate debt risk usually associated with high-capex projects for publicly listed companies.
The primary monitorables for observers will be the construction timelines for the upcoming Gurugram and Noida centers, as large-scale mixed-use developments often face regulatory or execution delays. Additionally, investors in the broader Indian retail sector may track whether Ikea’s move toward smaller, more flexible store formats allows it to increase its reach and improve store-level profitability in a competitive market where local furniture brands and e-commerce players are also expanding.