Ikea expands in North India with central distribution centre in Delhi-NCR

Ikea expands in North India with central distribution centre in Delhi-NCR

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Ikea has expanded its presence in North India with the launch of its first fully outsourced Central Distribution Centre (CDC) in Gurugram, Delhi-NCR. The 180,000 sq ft facility, located in Farrukh Nagar, has been developed in collaboration with global logistics provider Rhenus, the company announced on February 24.

Ikea has expanded its presence in North India with the launch of its first fully outsourced Central Distribution Centre (CDC) in Gurugram, Delhi-NCR in collaboration with global logistics provider Rhenus.(Ikea)
Ikea has expanded its presence in North India with the launch of its first fully outsourced Central Distribution Centre (CDC) in Gurugram, Delhi-NCR in collaboration with global logistics provider Rhenus.(Ikea)

The new facility will support the storage and fulfillment of over 7,000 IKEA products. As the first fully outsourced CDC for Ikea, it incorporates sustainable features and advanced technology, ensuring seamless doorstep delivery across the Delhi NCR region and, in the future, to other northern markets, it said.

Situated approximately 35 kilometres from the airport, the CDC for IKEA is located in Farrukh-Nagar, Gurugram, and well connected to the region’s rail, road, and air channels, it said.

Central Distribution Centre to help Ikea fulfil orders within 24 hours

The CDC for IKEA, with a storage capacity of 12,000 m 3 , will enable the Swedish home furnisher to fulfil most orders within 24 hours, as part of its strategic expansion plans in India.

The facility is seamlessly integrated with Rhenus Warehouse Management System (WMS), a best-in-class warehouse logistics solution that allows for efficient transactions throughout Electronic Data Interchange (EDI) and solving the complexity of last-mile logistics, it said.

The CDC, which will hire close to 150 employees, provides inclusive facilities for their well-being, including healthcare support, emergency-ready infrastructure, a cafeteria and a training hall. It will explore opportunities to deploy specially abled personnel to support their aspirations to contribute and grow within the system, it said.

“We at IKEA are thrilled to finally begin our North India journey. The IKEA Customer Distribution Center (CDC) will enable us to serve many more people with our beautiful home furnishings products and solutions. This is a movement towards a future where speed, sustainability, and accessibility will define the IKEA experience in North India,” said Saiba Suri, Country Customer Fulfilment Manager, IKEA India.

Ronny Sassen, CEO of Rhenus Contract Logistics said, “As we embark on the next chapter of our expansion with IKEA, our first venture for IKEA outside Europe, we reaffirm the strength of our four-decade-long partnership. The establishment of IKEA’s first fully outsourced Central Distribution Centre (CDC) marks a significant operational milestone.”

Vivek Arya, CEO of Rhenus Logistics India and Global CEO of Rhenus Warehousing Solutions Intercontinental said, “The completion of this new warehousing project in India showcases our commitment to providing comprehensive logistics solutions and marks a significant milestone in our journey with IKEA in India, and beyond. As IKEA grows on its strategic expansion in India, we look forward to continuing being their valued partner in the long run, driven by zeal, zest, and a shared vision for excellence.”

Since 1988, Rhenus and IKEA have worked together to develop an extensive European network spanning over 50 sites and by 2018, over 1.8 million deliveries. Future plans for the partnership between Rhenus and IKEA include ramping up the facility as the market grows in the coming years, the statement added.

In India, Rhenus operates as a joint venture with the Arya Family, leveraging over seven decades of expertise in logistics services. With more than 2,076 employees across 70 offices and 2.4 million sq. ft. of warehousing capacity, it delivers integrated logistics solutions across key sectors like automotive, renewables, healthcare and consumer goods, the statement said.

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