Ikea is dedicated to expanding its production in India, not only for the domestic market but also for global exports. This strategic move is part of the company’s next phase of growth in India.
Speaking to Moneycontrol, at the World Economic Forum in Davos, Juvencio Maeztu, Deputy CEO of Ingka Group, the parent company of IKEA, emphasised their commitment to holistic growth in the country.
“IKEA had promised to invest Rs 10,500 crore into India which we have completed. We promised 50 percent gender equality which we have achieved. We had promised to source 30 precent locally, which we have done,” Maeztu said.
According to Maeztu, this reflects the mutual admiration between India and IKEA.
“India loves Ikea, and Ikea loves India,” he said.
Alongside increasing local production, IKEA is also looking at both online and offline expansions in India. IKEA will open more stores in Bengaluru, Mumbai, Delhi and others while expanding their online presence in cities like Pune, Andhra Pradesh, Karnataka and Gujarat.
They are also working on reducing prices.
“We will reduce prices all over the world and in India. We are going to reduce prices by 20 per cent for over 250 products in the next few weeks,” Maeztu added.
“We aim to produce more volume at less cost and also develop technology that supports sustainability,” he said.
“We need to partner with state governments to find the right store locations which have good metro connectivity, and are connected by highways. We want harmonisation of standards to match international standards to support exports. We really welcome the government’s move to really increase the quality standards,” Maeztu added.