Swedish home furniture retailer Ikea, which on Thursday laid the foundation stone of its first store in the country, said it will double sourcing of products and material from India to 600 million euros in the next three to four years and also launch stores in Bengaluru, Delhi and Mumbai by 2018, reports fe Bureau in Hyderabad.
Ikea India CEO Juvencio Maeztu said the firm has already bought land to open its Mumbai store and is talking to the Karnataka and Delhi governments for the same.
The Hyderabad store will open in August 2017. The Ikea Group is the first major single-brand retailer to get foreign direct investment approval in India.
Maeztu said that the recent passage of the goods and services tax (GST) Bill in Parliament will send out a positive message to the global investor community.
Addressing the media after the ground-breaking ceremony in Hyderabad, Maeztu said, “The Hyderabad store will be Ikea’s first store in the country and will form part of a chain of stores planned across the country. The project is expected to be ready by mid-2017 which will require an investment of about `700 crore.” The Ikea Group has got the Foreign Investment Promotion Board’s approval to invest about `10,500 crore over 10 years for opening about 25 stores. However, the company intends to invest more in a phased manner.
“India is an important market for Ikea. We hope to bring in unique home furnishing solutions,Maeztu said. “We are now building a 400,000 sq ft store in Hyderabad. It will employ 2,000 people, providing both direct and indirect employment. We expect to have more than 4 million visitors a year.”
In India, it has 50 suppliers with 45,000 direct employees and 400,000 people in the extended supply chain.
Globally, Ikea has over 328 stores in 28 countries. The company plans to expand to newer categories both in textiles and furniture.