Retail India News: Ikea India Eyes Profitability Amid Expansion and Omnichannel Growth

2025.02.20

Ikea India, the Swedish furniture and home furnishing giant, anticipates achieving operational profitability within the next few years, according to Susanne Pulverer, CEO and Chief Sustainability Officer of Ikea India.

Speaking at a media interaction on Friday, Pulverer noted that the company has navigated challenges such as the COVID-19 pandemic, inflation hikes, and disruptions in supply chains and raw materials. Now, Ikea India is shifting focus towards stabilization and affordability as it enters its next growth phase.

“It (operational profitability) will take a couple of years, but we have a very clear plan to achieve it,” she stated.

According to a RoC filing, Ikea India reported a widened net loss of Rs 1,299.4 crore for FY24. However, its operational revenue rose by 4.5 percent to Rs 1,809.8 crore for the financial year ending March 31, 2024, as per business intelligence platform Tofler.

The company attributed the increase in losses to continued investments in expansion and omnichannel growth.

“We are moving according to plan and progressing towards profitability. There is a structured approach to achieving this, based on several initiatives. One key aspect is maintaining low costs in everything we do, which is part of our core value. We aim to enhance efficiency in our operations, develop more cost-effective touchpoints, and explore ways to reduce expenses,” Susanne Pulverer added.

She also highlighted the rapid growth of online sales, which now account for 30 percent of total sales and are expanding at a faster pace than offline sales.

Ikea initially committed an investment of Rs 10,500 crore upon entering India, which was allocated to opening stores in Hyderabad, Navi Mumbai, and Bangalore, as well as a city store in Worli (Mumbai) and another in a Mumbai mall, which was later closed. Additionally, two Ikea-anchored Ingka Centres projects are underway in Gurugram and Noida and are set to launch in the coming years.

The Gurugram project has made substantial progress, with the shopping center’s structure nearing completion. Pulverer confirmed that it is expected to be operational by 2026. Meanwhile, the Noida project remains in its early stages.

The Noida project, which will feature offices, a hotel, a shopping center, and an integrated Ikea store, is planned on a larger scale than the Gurugram development.

Currently, Ikea India employs nearly 3,000 people and sources 30 percent of its materials locally. The company has recorded over 180 million visitors across its online and offline platforms and boasts more than 2.5 million members in its ‘Ikea Family’ community.