IKEA to invest Rs 1,500 crore in Mumbai

Must Read

World’s largest furniture retailer IKEA is investing Rs 1,500 crore as part of plans to have 25 stores across India by 2025 and its second store is likely to come up within 18 months in Navi Mumbai.
According to a PTI report: It is among the several companies including Amazon, Microsoft, Owens Corning and Emerson which have committed investments in Maharashtra.
“IKEA is starting to invest now. They have bought a big piece of land for Rs 400 crore in Navi Mumbai for their store,” Principal Secretary – Industries, Maharashtra government, Apurva Chandra was quoted by PTI as saying.
IKEA plans to build a 400,000 sq ft store on the land.
“They are investing almost Rs 1,500 crore here. This will be the first retail store in India,” Chandra was quoted by PTI as saying.
The Swedish firm had previously announced it will open a store in Hyderabad in second half of 2017.
“Now they have taken the land, the first store will take another year or year and half,” Chandra was further quoted by PTI as saying.
The privately-owned firm expects the Mumbai store to get more than 5 million visitors a year.
IKEA is also scouting for land to set up stores in Bengaluru, Delhi and the NCR region.
Chandra said Amazon is also investing in Maharashtra.
“They (Amazon) are launching their first web services from Mumbai. They are also going to set up a data centre here which will entail big investment,” he was quoted by PTI as saying.
Besides, he added, Microsoft is planning to set up data centre here.
“Then there is an American company, Owens Corning. They came in recently. They have taken approval for Rs 1,000 crore. They have already started, they have got land,” he was further quoted by PTI as saying.
Owens Corning develops and produces insulation, roofing, and fiberglass composites.
Chandra was quoted by PTI as saying: “(US firm) Emerson, which is into process engineering and automation, has come here and is investing Rs 2,000 crore.”
IKEA, which has been sourcing from India for its stores worldwide for three decades, plans to add suppliers and double its sourcing volumes by 2020.
Its store in Hyderabad will be a massive 4 lakh square feet in size and will include all features of a global IKEA store, including restaurant, play and development area.
In July last year, the company had announced purchase of 13 acre land close to the IT hub in Hyderabad’s HITEC city.
IKEA will be laying the foundation stone in Hyderabad next month for its first store in India that will open next year.
“IKEA is performing ground-breaking and laying of foundation stone for its first Indian store on August 11. After completion of the construction, the outlet is expected to open somewhere in July-August next year,” an IKEA official was quoted by PTI as saying.
IKEA India’s CEO Juvencio Maeztu along with other senior officials of the company are expected to attend the event, he was further quoted by PTI as saying.
IKEA was one of the first companies in India to get approval for setting up 100 per cent FDI in single brand retail.
“The decision by IKEA to set up its first store in Hyderabad will place the city on the international map of IKEA stores. The retail outlets have a standard design and each location entails an investment of US$ 100 million (Rs 550-600 crore),” the company was quoted by PTI as saying.
“In addition, the backward integration of supplier linkages will have tremendous economic impact to the state,” it was further quoted by PTI as saying.
Each store of IKEA may employ 500 – 700 workers directly and 1,500 indirectly.
At present, IKEA sources products worth 300 million euro for its global operations from India.
READ MORE: Local sourcing conditions: IKEA for ‘less detailed regulations’
IKEA to consider production unit in India
IKEA seeks 450 acres at Kandla port, to create furniture hub

Latest News

Simplicity should be the key 2023-24 mantra, says India EAS Index Report

The EAS Index Report identifies customer pain points across their interaction with brands and shares recommendations to ease the...

More Articles Like This