IKEA will start its business in India in the second half of 2017, by opening a store in Hyderabad. The Swedish furniture retailer also plans to open other stores in Mumbai, Delhi-NCR and Bengaluru. By 2025, IKEA’s project in India includes other 25 stores in nine cities, according to DNA India
The furniture retailer got government approval for its RS 10,500 crore proposal as to be able to build retail stores under 100% FDI. The store in Hyderabad will measure 4 lakh square feet in size and will have all the facilities, such as play area and restaurant. The company bought 13 acre of land close to the IT hub in Hyderabad's HITEC city last year, for the building of the store.
As IKEA Asia Pacific Retail President Mikael Palmquist, said, "we will open our first store in Hyderabad in later half of 2017. Digging for construction of our first store in India started this week. After Hyderabad, in the first phase of growth, we plan to open stores in Delhi, Mumbai and Bangalore. We are searching for land in these cities. We want to open more than one store in locations where our stores come up."
IKEA expects a faster growth in India, compared to China, and they are ready to respond to a large request. The furniture retailer has been opening 3 stores a year in China in the last 15 years and expect to be able to open stores at the same rate until 2025.
Regarding the sourcing norms, Palmquist said that the "start date has changed from first investment from date of store opening.” Thus, the company still needs some time to invest in sourcing solutions as to find local entrepreneurs and to source raw materials.
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