IKEA partners with Rhenus ahead of e-commerce expansion in Delhi

IKEA has signed an MoU with Rhenus to elevate the home delivery experience for customers in the Delhi NCR region.

This step aims to support the growth of IKEA's e-commerce expansion and ensure faster and more sustainable deliveries to the customers in the region.

Under this partnership, IKEA India along with Rhenus, will establish a warehouse facility capable of storing and fulfilling over 7000+ products. This initiative ensures seamless doorstep delivery to customers in the Delhi NCR region, marking a significant milestone in IKEA’s expansion in India. This strategic expansion enables the company to fulfil majority of the orders within 24 hours. Through technology integration, the partnership will enhance flexibility and cost-effectiveness in managing the furniture major’s supply chain.

In January 2024, IKEA India announced the launch of its e-commerce offering across 62 districts in the states of Maharashtra, Karnataka, Telangana, and Andhra Pradesh.

In India, the northern region holds significant potential for the home furnishing industry. With cities such as Delhi, Noida and Gurgaon experiencing a surge in real estate development, the demand for home furnishings has witnessed a corresponding increase. Catering to the rising demand, IKEA has plans to launch its omnichannel presence in the region starting in mid-2025, reaching customers across Delhi NCR and surrounding markets.

The upcoming facility stands as one of the most sought-after destinations for warehousing logistics services with excellent connectivity to all consumption areas in and around NCR (National Capital Region). Located in Gurgaon, the facility sprawls over 150,000 square feet and is well-connected to inbound movements via rail, road, and air. This centre marks IKEA’s first such facility in India, poised to fulfil hundreds of orders daily.

"It is also a testament to the company’s commitment to generate hundreds of job opportunities, creating a diverse and inclusive workspace, while building industry-best sustainable practices. The facility is nestled within one of the largest and most modern warehouse and industrial parks in the country with top-of-the- line warehouse infrastructure, including cutting-edge storage and material handling systems," reads the release.

Saiba Suri, Country Customer Fulfilment said, “Our partnership 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. We share equal anticipation with our customers when it comes to our Delhi NCR expansion. We don’t just plan to scale but create a customer experience that is good for the planet and for the people. IKEA is excited to announce its first foot down in Delhi NCR alongside Rhenus.”

The warehouse is expected to go live early next year, marking an enhanced customer service and operational efficiency for IKEA in India. 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.

Vivek Arya, Regional CEO, Rhenus India said, “As we expand our partnership from a European base to a global scale, our journey with IKEA is a testament to our shared commitment to excellence, innovation, and sustainability. This new warehousing project in India is not just an expansion of our operations, but a bold step towards a more inclusive and diverse global presence. Celebrating over four decades of partnership with IKEA, we approach this global expansion with the same fervour and dedication that has been the hallmark of our relationship. It's a testament to our belief in Long-Term Collaborations, driven by zeal, zest, and a shared vision for excellence on a global scale.”

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. This relationship reflects the expansive global footprint and the mutual commitment.