Post by The Economic Times

IKEA and Linn Roslund signal a deeper strategic shift as the Swedish furniture giant incorporates a new product development company in India. The unit, part of Inter IKEA Group, will design home furnishing products for both Indian and international markets, making India the fourth country in IKEA’s global product development network after Sweden, China and Vietnam. The move completes IKEA’s full value-chain presence in the country, adding product development to its existing retail and sourcing operations. India, which has supplied IKEA for over four decades, currently exports products worth about $400 million annually. The new centre has been tasked with developing hundreds of products that balance affordability with local relevance, while also tapping India’s manufacturing strengths and materials for global demand. "What we have done in the last two to three years is really commit towards India as a sourcing market for a wider range of IKEA products, the product development centre is a good addition because it allows us to work with the materials and manufacturing capabilities that exist in region." said Linn Roslund, managing director, IKEA Services India.