IKEA India gets closer to Delhi NCR; onboards Rhenus ahead of its online expansion

Outsources to set up a 150,000 sq ft of warehouse facility in Gurgaon

Image caption: IKEA and Rhenus sign the MoU for their first warehouse in Delhi NCR

 

From left to right: Ishan Varshney, Branch Manager North - Road Freight; Parikshith Arya, Managing Director; Marcus Fornell, Director – Warehousing Solutions; Saiba Suri, Country Customer Fulfilment Manager IKEA India; Ronny Sassen, CEO Warehousing Solutions; Ramakrishnan V, Fulfilment Sourcing Manager IKEA India; Naveen Kulkarni, Director-Commercial, Warehousing Solutions

India, May 14, 2024: IKEA, one of the world's most loved and trusted home furnishings brand, has signed an MoU with Rhenus, a global logistics leader, 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 sustainable deliveries to the customers in the region.

Under this collaboration, Rhenus will establish a state-of-the-art warehouse facility capable of storing and fulfilling over 7000+ products. This initiative ensures 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 technology integration will help enhance flexibility and cost-effectiveness in managing the furniture major’s supply chain.

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 omni-channel presence in the region starting 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 inbound movements via rail, road, and air. Co-created with IKEA India’s vision, the facility will be 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. This facility that will fulfill hundreds of orders daily will also be generating hundreds of job opportunities, creating a diverse and inclusive workspace, and while building industry-best sustainable practices.

Commenting on the partnership, Saiba Suri, Country Customer Fulfilment Manager 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. 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 between the two companies.