Ikea India, the prominent Swedish furniture and home furnishing retailer, anticipates achieving operational profitability within the next few years, according to CEO and Chief Sustainability Officer Susanne Pulverer. During a media briefing in Hyderabad, she highlighted that the company is now focusing on stabilization and affordability after navigating the challenges posed by the COVID-19 pandemic, inflationary pressures, and supply chain disruptions. “Achieving operational profitability will take a couple of years, but we have a clear plan in place,” she stated.
In its financial report for FY24, Ikea India disclosed a loss of ₹1,299.4 crore, as per a filing with the Registrar of Companies. The company’s revenue from operations reached ₹1,809.8 crore, reflecting a 4.5% increase for the fiscal year ending March 31, 2024. The increase in losses is attributed to investments in expansion and omnichannel growth strategies.
“We are progressing according to our plan towards profitability, employing a structured approach that includes various initiatives. A key focus is on maintaining low costs across all operations, which aligns with our core values. We aim to enhance operational efficiency, develop cost-effective touchpoints, and identify ways to reduce expenses,” she added.
Pulverer also noted that online sales, which represent 30% of total sales, are growing at a faster rate than offline sales. The initial ₹10,500 crore investment made by Ikea upon entering the Indian market has been utilized to establish stores in Hyderabad, Navi Mumbai, and Bangalore, as well as a city store in Worli (Mumbai) and another in a Mumbai mall that has since closed. Additionally, two Ikea-anchored Ingka Centres are under development in Gurugram and Noida, with the Gurugram project expected to be operational by 2026.
Ikea India currently employs nearly 3,000 individuals and sources 30% of its materials locally. The company boasts over 180 million visitors across its online and offline platforms, along with more than 2.5 million members in its ‘Ikea Family’ community.
