- The Swedish furniture giant IKEA will invest another 850 crore rupees in India.
- IKEA has a large online presence in many cities and plans to open physical units in cities like Noida, Mumbai, Bengaluru, Surat, Ahmedabad, and Vadodara.
- The company has decided to open 25 stores across the country by 2025.
Ikea, the Swedish furniture giant, will invest another 850 crore rupees in India in order to support its growing business. The company has planned to invest 10,500 crore rupees in India and a good sum has already been invested in the units in Navi Mumbai and Hyderabad. It also has a large online presence in many cities and plans to open physical units in cities like Noida, Mumbai, Bengaluru, Surat, Ahmedabad, and Vadodara.
“India is identified as a future growth market for Ingka group. The fund infusion received is part of the Rs 10,500 crores announced initially. This new infusion will support our omnichannel expansion plans in India to enable us to reach many more people in India for their life at home needs with our affordable and sustainable products,” said a spokesperson for Ikea India.
IKEA is the world’s largest ready to assemble furniture retailer and one of the oldest furniture companies. The company has decided to open 25 stores across the country by 2025. The company got permission to invest 10,500 crore rupees in 2013 and opened its first store in Hyderabad in August 2018. The company has already purchased land in the range of 10-23 acres to open large-format stores in cities like Mumbai, Bengaluru, and Gurgaon. The company typically invests around 1,000 crores per store.
Last year, the Swedish furniture giant signed an MoU with the Yogi government to set up the largest unit in Noida. Although IKEA has a presence in India and its stores are successfully running in cities like Hyderabad and Mumbai, it has no giant shopping centers in India for which the company is known around the world. The luxury furniture brand is now all set to open up its largest shopping center in Noida.
The decision of the luxury furniture giant IKEA to open a shopping center in Noida shows the rising purchasing power capacity of the city and its surrounding areas. As per data from the Department of Economics and Statistics, UP, Gautam Buddha Nagar District, which comprises Noida and Greater Noida, had a per capita income of a staggering 3,68,081 lakh rupees per annum in 2018. The district is followed by Meerut (88,273), Lucknow (71,846) Kasganj (71,294), Ghaziabad (64,907), Kanpur Nagar (57,308), Aligarh (47,849), and Agra (68,795).
In the last few decades, Noida has risen exponentially on the city index of the country, riding on Information Technology enabled services and media businesses, which are flocking to the city given its efficient administration and world-class infrastructure.
Such a huge investment by Ikea in Indian cities also shows that the company believes that it has prospects to do good business in India given the rising purchasing power of Indian consumers.