Swedish furniture retailer Ikea has signed an MoU with logistics player, Rhenus as it gears up for expansion in the Delhi-NCR region. Under this partnership, Rhenus will establish a state-of-the-art warehouse facility capable of storing and fulfilling over 7000 products.

“This initiative will ensure seamless doorstep delivery to the customers in the Delhi NCR region, marking a significant milestone in Ikea’s expansion in India. This strategic expansion enables the company to fulfill majority of the orders within 24 hours, the statement added. The technology integration will help enhance flexibility and cost-effectiveness in managing the furniture major’s supply chain. Ikea plans to launch its omni-channel presence in the Delhi-NCR region by mid-2025 to cater consumers across Delhi NCR and surrounding markets.

Saiba Suri, Country Customer Fulfilment Manager at Ikea India said, “Our collaboration with Rhenus transcends decades. Bringing their expertise and experience in growing IKEA in other global markets to our operations here is an exciting opportunity for both in our India journey. IKEA is excited to announce its first foot down in Delhi NCR alongside Rhenus.”

The Swedish retailer noted that the the northern region holds significant potential for the home furnishing industry, with rising demand for the category seen in recen times in cities such as Delhi, Noida, and Gurgaon.

Located in Gurgaon, the warehouse is expected to go live early next year. Establishing the first fully outsourced central distribution centre for Ikea seamlessly integrated with electronic data interchange linked to Rhenus’ Warehouse Management System for efficient transactions.The warehouse is expected to go live early next year.

IKEA and Rhenus have maintained a longstanding partnership since 1988. The collaboration has spanned over four decades, witnessing significant milestones in logistics and home delivery services across various countries including Europe, Germany, Poland, Italy, and Bulgaria.