IKEA is in an investment phase in India and parent Ingka Group had in September infused Rs 600 cr into the India subsidiary
New Delhi: IKEA India Pvt Ltd reported its net loss widened 12% to Rs 901 crore for the fiscal year ending March 2022 compared to a year ago.
However, the Swedish furniture and home products retailer reported a healthy 73% spike in its annual revenue that year to Rs 1,126 crore compared to fiscal year 2020-21 when the company had reported a revenue of Rs 650 crore, according to Registrar of Companies (RoC) data accessed by business intelligence platform, Tofler.
Tofler said IKEA incurred total expenses of Rs 2,027 crore in 2021-22.
IKEA operates three large format warehouse-size outlets in the range of 400,000 sq ft in Hyderabad, Mumbai and Bengaluru.
In July, IKEA rolled out its second city centre and relatively smaller format in Mumbai.
The 72,000 sq ft store located in R City Mall is IKEA’s first store in a mall in India. Prior to that IKEA had opened its first smaller store in the range of 80,000 sq ft in Worli, Mumbai.
Then in September, Ingka Group, the parent company, had infused Rs 600 crores in IKEA India Pvt Ltd.
The fund infusion came into its India subsidiary through Ingka Pro Holding BV, The Netherlands and Ingka Holding Overseas BV, The Netherlands. The capital infusion comes at a time when IKEA is expanding its stores in India.
Ingka Group has also announced that it would invest Rs 7,500 crores to develop in the NCR two Ingka Centres, large retail destinations that would house other brands and retailers apart from IKEA.