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.

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.

Situated approximately 35 kilometres from the airport, the CDC is well connected to the region's rail, road, and air channels.

Fulfilling Orders Within 24 Hours

The CDC, with a storage capacity of 12,000 sq ft, will enable the Swedish home furnisher to fulfill 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 addresses the complexity of last-mile logistics.

The distribution center, 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.

Statements from Key Leaders

We at IKEA are thrilled to finally begin our North India journey. The IKEA Customer Distribution Center 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 Fulfillment 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 marks a significant operational milestone."

Vivek Arya, CEO of Rhenus Logistics India and Global CEO of Rhenus Warehousing Solutions Intercontinental added,

"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."

Long-Standing Partnership

IKEA and Rhenus have collaborated since 1988, developing an extensive European logistics network spanning over 50 locations. By 2018, the partnership had facilitated over 1.8 million deliveries. In India, Rhenus operates as a joint venture with the Arya Family, leveraging over 70 years of expertise in logistics services. With more than 2,000 employees across 70 offices and a warehousing capacity of 2.4 million sq. ft., Rhenus continues to provide integrated logistics solutions across key industries such as automotive, renewables, healthcare, and consumer goods.

As the demand for IKEA products in India grows, both companies plan to scale up operations at the CDC to meet future market needs.

Source: Ikea expands in North India with central distribution centre in Delhi-NCR - Hindustan Times