IKEA India—as part of the Ingka Group—operates exclusively on company‑owned stores and does not offer franchise rights to individual entrepreneurs. The official IKEA India customer portal clearly states that it does not sell or allow franchise licenses to external parties.
All existing IKEA outlets in India—including large-format megastores and newer small-format “Plan & Order Points”—are owned and managed by IKEA itself. Therefore, investment in an IKEA franchise is not an available option today in India.
This model ensures uniformity in operations, decision-making, pricing, and brand experience across all locations.
What Would the Numbers Look Like—If Franchising Were Offered?
Based on global IKEA franchise models and business insights, here’s a hypothetical breakdown of what an IKEA franchise in India might require, though IKEA itself currently does not offer this pathway:
| Investment Component | Estimated Cost (₹ Crore) | |
| Franchise Fee | ₹70 – ₹100 crore | |
| Store Setup & Interiors | ₹600 – ₹1,000 crore | |
| Inventory & Supply Chain | ₹100 – ₹200 crore | |
| Logistics Infrastructure | ₹50 – ₹100 crore | |
| Working Capital & Marketing | ₹20 – ₹50 crore | |
| Total Hypothetical Investment | ₹800 – ₹1,450+ crore | |
Royalty fees are typically around 3% of net sales, as per IKEA’s global franchise arrangement.
The scale reflects IKEA’s large retail formats: global franchise stores regularly span 300,000 to 500,000 sq ft, making the model accessible only to large corporates or national retail bodies—not individual investors.
Why IKEA Retains Ownership in India
Strategic Brand and Operational Control
IKEA prefers full ownership to maintain consistency across store experience, supply chain, pricing, and sustainability standards. This also allows them to adapt the global IKEA concept to regional Indian sensibilities.
Long-Term Investment Strategy
Their expansion plan—which involves opening large-format outlets in Gurugram (2026) and Noida (2028), plus small-format stores in Chennai and Pune—depends on land control, logistics, and digital infrastructure. IKEA views it as a long-term proprietary investment rather than franchise roll‑out.
Alternative Ways to Work with IKEA
Though direct franchising isn’t offered, here’s how entrepreneurs might integrate or benefit:
- Become a Seller or Supplier
IKEA sources many products from Indian suppliers—especially in textiles, furniture components, and décor. Approved vendors may gain access to IKEA’s procurement network. - Lease Properties to IKEA
IKEA is actively scouting large-format or city-centric properties (city‑centre stores, Plan & Order Points). Landlords and real estate agents can submit property proposals via IKEA’s official portal. - Support Services & Logistics
Ancillary opportunities could be in warehousing, logistics, last‑mile delivery, installation services, interior design partnerships, or interior execution firms aligned to IKEA’s requirements.
Final Verdict: Is a Franchise Pathway Viable?
No—for now. IKEA India does not offer franchise licences to entrepreneurs. Its focus is on wholly owned stores and strategically scaled formats—large and compact—for long-term brand coherence and control.
For Most Entrepreneurs:
The scale of investment—even hypothetically—is massive (hundreds of crores), making it inaccessible without institutional backing. If you’re exploring opportunities in home décor or furniture retail, consider:
- Local Indian brands that franchise
- Lifestyle retail stores or design studios
- Ancillary services aligned with IKEA’s ecosystem (suppliers, logistics, interior design)
