Swedish furniture major IKEA has recently announced its plans of setting up its maiden retail store in India. The company has purchased 13 acres land near the IT hub of Hyderabad for setting up this store, as per a company statement.
The company has signed a land purchase agreement, after IKEA India CEO Juvencio Maeztu met Telangana IT Minister K T Rama Rao, Industries Minister Jupally Krishna Rao and senior officials recently.
“This step is affirmation of IKEA’s expansion plans in India… evaluating suitable sites in Bengaluru, Mumbai, and Delhi NCR [too] to open 25 stores in the long term,” the company said in a statement.
Describing India as a very promising market for IKEA as it offers opportunity to source, retail, conduct CSR, IKEA India CEO Juvencio Maeztu said the store would offer a unique shopping experience and affordable home furnishing products.
According to a statement, IKEA retail outlets will have a standard design and each location entails an investment of $100 million (Rs 500-600 crore). Around 45,000 people work directly for 50 IKEA suppliers in India and about 4,00,000 in the extended supply chain. IKEA has recently organised three "Make more in India" campaigns, including one in Telangana, to look for new suppliers
Commenting on the development, Telangana chief minister K Chandrashekar Rao said, “It’s a matter of great pride for Telangana that IKEA has initiated its expansion plans in Hyderabad. The government is committed to provide necessary support to IKEA for its future expansion plans in the State.”
Headquartered in Sweden, IKEA is one of the world’s largest and recognizable international furniture, household goods and textiles retail companies. As of June 2015, IKEA owns and operates 353 stores in 46 countries. It has been sourcing from India for the last 28 years and with this new store it plans to double its sourcing volumes in the country by 2020.
IKEA to double India sourcing volume by 2020, to open first retail store in Hyderabad
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