IKEA India to increase local sourcing, says CEO Susanne Pulverer

IKEA India is planning to increase locally sourcing their products which will not only help in staying affordable but will also create more jobs and enhance skills, a top company executive has said.

"We have been steadily increasing our local sourcing footprint in India and our ambition is to reach about 50 per cent in the long term. So our ambition is to increase the local sourcing step by step," IKEA India CEO and Chief Sustainability Officer Susanne Pulverer told PTI on the sideline of the Retail Leadership Summit on Wednesday.

Local sourcing through partnerships will make a positive impact on the economy and society not just in retail but also in all allied sectors and services, she said.

According to Pulverer, this will enable lower prices for IKEA's customers, help create more jobs, enhance skills and keep costs low while reducing environmental impact as well.

Talking about the rise in price impacting the company, Pulverer said, the hike in transport and raw material cost have also impacted IKEA like everyone else.

"Yes, we are also impacted like everyone else by raw material availability, higher prices, more transport cost. So we have tried to absorb a lot of the cost, we have done some price adjustments as well. And we try to stay affordable in every segment," she said.

Further, Pulverer said IKEA India is planning to make a complete conversion to electric vehicles (EV) for goods delivery by 2025.

"By 2025, we intend to make a complete conversion to electric vehicles for goods delivery. This is in line towards the progression towards sustainability and a reduction in carbon emissions," she added.