How is IKEA powering India growth through smart logistics from Pune?

On 12 March 2026, IKEA launched its first city store in Pune—a 32,000 sq. ft. outlet at Phoenix Mall, Viman Nagar featuring over 1,900 curated products, digital planning tools and a Swedish café. Designed for compact urban homes, the store offers a mix of immediate takeaway items and a wider range accessible through ordering, reflecting IKEA’s growing focus on omnichannel retail in India.

The Swedish furniture brand has it presence across four markets in India with three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru; three city stores in Worli, New Delhi and now in Pune; one Plan and Order Point in Bengaluru; and is leading carbon-free deliveries across hundreds of pin codes across Maharashtra (including Pune), AP-Telangana, Gujarat, Karnataka, Delhi-NCR, Agra, Prayagraj (Allahabad), Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana, Varanasi, and Goa; with Tamil Nadu being the newest addition. The company operates two distribution centres in India - one in Pune and another in Gurgaon.

In an interview with Indian Transport & Logistics News, Saiba Suri, Country Customer Fulfilment Manager at IKEA India, highlights how the Pune distribution centre serves as a critical backbone of the company’s logistics network. The facility connects suppliers to stores and customers through a multimodal mix of rail and road, enabling efficient inventory flow, store replenishment and e-commerce fulfilment across the country.

Suri also explains the operational shift towards city-format stores, which offer curated product ranges tailored to urban living while relying on a wider digital catalogue fulfilled through IKEA’s backend network. Innovations such as reusable crates, electric vehicles and flexible unloading solutions are being deployed to optimise last-mile delivery in dense urban environments.

With a mix of domestic sourcing—accounting for nearly 30% of IKEA’s global range—and international supply, the company continues to refine its logistics strategy to balance cost, speed and sustainability.

What were the key factors behind selecting Pune as the location for IKEA’s distribution centre, and how does it support the company’s overall logistics network in India?
Our warehouse locations are selected carefully because they are closely tied to how we reach customers more efficiently. Pune was a natural choice for a distribution centre because of its strong base with A grade warehousing, connectivity to the Nhava Sheva port and to key markets in Western India. It was also our first step in Maharashtra, which continues to be an important state for our journey in India.

The facility, located in Chakan began with a footprint of about 4.5 lakh sq. ft. and has since expanded to approximately 8.05 lakh sq. ft., in line with growing volumes and operational needs.It continues to play a critical role in our logistics ecosystem, supporting store replenishment while enabling faster and more efficient fulfilment for our expanding e-commerce operations. As IKEA continues to grow its presence in India, the Pune distribution centre remains a key backbone of our supply chain, helping us serve customers across multiple touchpoints.

How does the Pune city store differ operationally from the large-format store in Navi Mumbai, particularly in terms of product assortment, storage, and fulfilment?
City-format stores, including the newly launched Pune store, are an important part of IKEA’s evolving omnichannel strategy in India. These smaller, more accessible formats are designed to bring IKEA closer to customers in dense urban markets, making it easier for people to experience the brand.

The purpose of city stores is to offer a carefully curated selection of home furnishing solutions that reflect the realities of urban living, particularly in cities where homes are often more compact and multifunctional. Customers can explore inspiring room setups, discover practical storage and organisation solutions, and interact with our co-workers to plan their homes.

These city stores work in tandem with our larger, blue-box stores, which continue to remain central to delivering the full IKEA experience. While the in-store range is more curated, customers still have access to the wider IKEA range of over 6,400 products through our digital platform. These can be conveniently ordered online and fulfilled through our robust logistics and distribution network.

Could you explain the logistics model of the Pune distribution centre and how it supports IKEA’s stores and e-commerce operations across the country?
The distribution centre in Pune is an important link between our suppliers and stores. Products arriving at the facility are received, sorted and stored based on demand. From there, shipments are consolidated and dispatched for store replenishment through a multi-modal network of rail and trucking. Our ambition is to secure the lowest cost with quality and sustainable networks.

Where are the products supplied to the Pune distribution centre manufactured or sourced from, and what proportion comes from Indian suppliers versus global production hubs? How are products transported to the Pune distribution centre from manufacturing locations—what modes of transport are primarily used (sea, road, rail)?
Products supplied to the distribution centre come from a mix of domestic and global suppliers/ hubs within the IKEA supply network. India is an important sourcing market for IKEA globally, and 30% of the range sold in IKEA globally is sourced in India. At the same time, products continue to come from international suppliers so that we can offer the full IKEA range.

“India is an important sourcing market for IKEA globally, and 30% of the range sold in IKEA globally is sourced in India.”

When it comes to transportation, we have adopted an intermodal approach by combining rail and road transport. This helps reduce transit time and lowers carbon emissions.

Does the Pune distribution centre function as a regional warehouse for western India, including Maharashtra and nearby states, or does it serve the entire national network?
The distribution centre in Pune is the backbone of our supply chain as it supports our logistics network across India. Products are first received at this facility before being sent across the network. From here, shipments move to our stores across the country as well as to our Customer Distribution Centre (CDC) in Gurugram. This helps us manage the flow of inventory and keep stores well stocked.

Customer orders are then fulfilled through these locations depending on the region. In most markets, e-commerce orders are fulfilled directly from our large-format stores, which act as fulfilment hubs for online demand. In northern markets, online orders as well as the replenishment of our store at Pacific Mall are supported through the Gurugram CDC.

Together, this structure helps us keep products closer to customers while allowing us to manage store replenishment and online orders efficiently across markets.

How does IKEA plan and manage inventory for city stores like Pune compared with larger format stores?
City stores operate differently from large-format stores, particularly when it comes to inventory and replenishment. These small stores, including Pune and Delhi focus on a curated range suited to urban homes and compact living spaces.

Instead of carrying the full IKEA range in-store, these locations rely on the broader fulfilment network for the extended range. Customers can explore the wider range digitally and place orders for delivery.

To support this format, we have introduced a city store replenishment model designed for urban environments. This includes solutions such as reusable crates, multi-way picking platforms and customised electric vehicles that can operate even in locations without traditional unloading docks. This was first piloted at our city store in Pacific Mall, West Delhi and we plan to scale this across all upcoming city stores.