Rhenus News

Rhenus partners IKEA to fulfill e-commerce growth in India

Leading global logistics provider, the Rhenus Group in India and IKEA India signed a Memorandum of Understanding (MoU) to support the Swedish home furnisher’s e-commerce expansion into the Delhi National Capital Region (NCR), through tailor-made warehouse logistics designed for IKEA’s titanic business model.

From left to right: Ishan Varshney, Branch Manager North - Road Freight; Parikshith Arya, Managing Director; Marcus Fornell, Director – Warehousing Solutions; Saiba Suri, Country Customer Fulfilment Manager IKEA India; Ronny Sassen, CEO Warehousing Solutions; Ramakrishnan V, Fulfilment Sourcing Manager IKEA India; Naveen Kulkarni, Director-Commercial, Warehousing Solutions.

This partnership between Rhenus India and IKEA will see a state-of-the-art warehouse with the capacity to store and fulfill doorstep deliveries of over 7,000 IKEA products to households in northern India.

India is currently the world’s fourth largest furniture market, rising rapidly from tenth place 10 years ago1. The Delhi NCR, which sees continued demand for high-end real estate in districts like Gurugam, Noida, and Delhi, is primed for Rhenus India’s expertise in optimized supply chain solutions, helping to satisfy IKEA’s furnishing challenges to fulfill online orders within 24 hours.

As a valued logistics partner, Rhenus India is trusted to meet the fast-growing needs of home furniture products within the Delhi NCR, solving the complexity of last-mile logistics. By early next year, IKEA and the residents of Delhi NCR can expect enhanced logistical efficiency, served by top-of-the-line warehouse infrastructure, which includes cutting-edge storage and material handling systems in the city’s leading industrial park.

The 150,000 sqft (~13,935 sqm) state-of-the-art Rhenus India’s warehousing facility is located in Gurugam and well connected to the region’s rail, road, and air channels. It features the Rhenus Warehouse Management System, which provides efficient transactions through its seamless integration with electronic data interchange. Rhenus India’s expertise in adapting to unique logistical challenges makes IKEA’s first fully outsourced central distribution center a reality.

Vivek Arya, Regional CEO, of Rhenus India, said: “As we expand our partnership from a European base to a global scale, our journey with IKEA is a testament to our shared commitment to excellence, innovation, and sustainability. This new warehousing project in India is an expansion of our operations and a bold step towards a more inclusive and diverse global presence. Celebrating over four decades of partnership with IKEA, we approach this global expansion with the same fervor and dedication that has been the hallmark of our relationship. It’s a testament to our belief in Long-Term Collaborations, driven by zeal, zest, and a shared vision for excellence on a global scale.”

The expansion of Rhenus’ logistics fulfillment operations is a testament to the company’s long-standing partnership with IKEA, which began in Europe. The partnership will be further strengthened through the flexible and cost-effective management of IKEA’s supply chain, fulfilling the need for enhanced home delivery experiences through the furnisher’s catalog.

Saiba Suri, Country Customer Fulfilment of IKEA, said: “Our partnership with Rhenus transcends decades. Bringing their expertise and experience in growing IKEA in other global markets to our operations here is an exciting opportunity for both in our India journey. We share equal anticipation with our customers when it comes to our Delhi NCR expansion. We don’t just plan to scale but create a customer experience that is good for the planet and for the people. IKEA is excited to announce its first foot down in Delhi NCR alongside Rhenus India.”

Their combined expertise and strategic vision will drive Rhenus India’s growth through developing customised solutions and synergistic partnerships.