IKEA To Open Its Second Store In India, In Navi Mumbai, With An Investment Of Rs 1,500 Crore

History of IKEA With Indian Market:

IKEA is a Sweden-based furniture giant that made its debut in India with its gigantic 13-acre complex. It was built in the HITECH City area of Hyderabad.

The relations between IKEA and India have been in progress since 1972. During that year IKEA signed an agreement with Travancore Mats and Matting Company.

Travancore Mats and Matting Company is a Kerala-based Company that supplied coir mats to IKEA. IKEA has, since then, has shown a generous amount of interest in the local Indian market for the local artisans, carpet, and textile makers!

IKEA was ready to enter India in 2007 but due to strict FDI regulations, their entering was postponed. In 2013, IKEA decided to invest Rs 10,500 Crore in the Indian market and they were presented with a chance where the investment norms or standards were relaxed.

Their initial location for the project in India was chosen as Mumbai but their emphasis later shifted to Hyderabad.

Their first retail store was opened in Hyderabad in 2018 and then online stores in Mumbai, Hyderabad, and Pune.

See Also: Wakefit, Sleep And Home Solutions Company, Raises ₹185 Crores In Series B

IKEA Store In Mumbai
Image Source

IKEA Accounces Opening Of Its Second Store in Mumbai

IKEA has announced the opening of their lavish second Indian store in Mumbai.

A massive investment of Rs.1,500 Crore has slowly turned cold due to the Coronavirus pandemic but the doors of the ginormous IKEA complex will be thrown open to their customers after an inauguration ceremony at 11 AM on 18th December 2020.

The pandemic situation made the expansion rate slower than expected but growth will be observed after the store will be open to their customers!

The Mumbai store is considered to be IKEA’s first largest “Big format” store covering over 3-5 lakh sq. ft area.

The store has made more than 7000 home furnishing ranges available to their customers and is located near Turbhe local railway station, Navi Mumbai.

Out of their 7000 products, 2000 will be locally-sourced and the company expects to attract around 5 Million customers in Mumbai after the Covid situation is under control.

Mumbai is the first omnichannel market for IKEA, said CEO and chief sustainability officer, Peter Betzel.

This store will house Småland, a huge children’s shopping area, inspired by their Hyderabad complex, and a massive 1,000 seater restaurant which will serve 100% Indian as well as Swedish cuisines.

IKEA has currently hired 600 direct workers and 300 indirect workers and is planning to expand their portfolio to 100 Million people in India, by 2022.

IKEA is ready to conquer the Indian market with another store in Bengaluru which is expected to open in the next 12 months!

IKEA has decided to open its stores in Delhi-NCR too with multiple format stores which will be a blend of a shopping center, small stores, and big centers.

IKEA has made sure their customers, especially the ones with thin wallets, don’t miss out the good products since Indians prefer value-for-money products and IKEA has focused on that.

IKEA has observed the behavior of their buyers that they would choose the options online but would like to pick up the product from stores. Therefore they have made this facility available in Mumbai from the start.

It was available in the Hyderabad store too, but it was not introduced during their initial opening.

IKEA Investments And Job Vacancies

IKEA has already invested Rs.7000 Crore in India in their two massive stores and other fulfilment centres located in the country.

According to a PTI report, it is expected that IKEA will invest around Rs.6000 crore in Maharashtra in next ten years.

IKEA has reported that they will be fulfilling the daily needs of people by giving over 6000 job offers to Indians and 50% of those will be reserved for women.

See Also: Ola To Set Up World’s Largest Scooter Factory In Tamil Nadu, Investing Rs. 2,354 Crore

Kritika
Student with ambitions, writer with ideas.