IKEA India CEO Susanne Pulverer says the company will work on developing furniture manufacturing capabilities in India
IKEA India CEO Susanne Pulverer expressed hopes that the company would able to work alongside domestic players to develop the country's furniture manufacturing capabilities as per the company's product requirements. She added that there remains a lot of potential in India to boost exports to other IKEA markets.
Speaking to Outlook Business on the sidelines of 27th World Investment Conference in Delhi, Pulverer says, "We are building our retail presence in the country. With just 5 stores right now, we are eyeing more volume and expansion into other markets. While we expand our operations in the country, the manufacturing landscape in India needs to be competitive in developing the required capabilities."
IKEA opened its first retail store in India back in 2018 in Hyderabad. Since then, the company has opened four more stores in Bengaluru and Mumbai with plans to open two stores in Delhi-NCR in the next two years.
Talking about the expansion plans, Pulverer says the company is assessing how to explore the markets other than Tier 1 cities. She adds, "It is tempting to venture into Tier 2 and 3 cities, but we have to ensure that it makes sense from a business point of view. A robust supply backbone along with other services are key to delivering good consumer experience."
IKEA has seen its revenue grow in the country in the last five years. As per the financials of FY22, the company had seen its revenue surge by over 77 per cent to Rs 1,076 crore. However, its net loss widened to Rs 901 crore from Rs 807 crore in FY21.
Pulverer says that the large investments have impacted the path to profitability but the company is focusing on breaking even and operating at a lower cost.