IKEA, the Swedish furniture retailing giant is in talks with Oberoi Realty to purchase land in Mumbai for its retail store which would be around 3.5 lakh sq ft in size. Last year, the company had bought 13 acre plot in Hyderabad for its outlet.
Estimated revenue for this project is around Rs 900 crore and the land size is believed to be the biggest in the history of any single furniture brand in the country.
“IKEA India, Swedish home furnishings company has expressed interest in buying the first land parcel in Mumbai, Maharashtra. As of now, we are awaiting approvals from relevant authorities before the final sign off and will comment once the process is complete,” An IKEA official was quoted as saying by The Economic Times in an email query.
To the above quote the company released a statement “We are in parallel looking for land sites in the prioritized states of Delhi & NCR, Maharashtra and Karnataka as part of the first phase of retail expansion in India. It is a priority to find the right store locations at the right price, with metro connection and easy access to public transport. In July 2015, we purchased our first site in India in Hi-Tech city in Hyderabad and will open the first Indian store in Hyderabad by autumn 2017. The goal is to open 25 stores in India by 2025.”
IKEA was the first largest furniture company to enter India followed by the 100 per cent FDI in single brand retailing. It is planning to open 25 stores all over the country and has earmarked Rs 10,500 for the expansion. At present it is targeting Mumbai, Delhi, Hyderabad and Bengaluru.