HYDERABAD: Swedish home furnishing firm Ikea Group has purchased 13 acres in Hyderabad for setting up its first retail store. This is part of the company’s proposal to open 25 stores across the country
“The company is also evaluating suitable sites in Bangalore, Mumbai, and Delhi NCR (National Capital Region) to open 25 stores in the long-term,” Ikea said in a statement.
The 13-acre site, close to the IT hub at Hi-tech city is within easy access to public transport and to the upcoming Metro rail.
Ikea has been sourcing from India for the last 28 years and it plans to double its sourcing volumes by 2020. Around 45,000 people work directly for 50 Ikea suppliers in India and involves over 4 lakh as part of its extended supply-chain.
“We believe that Ikea will bring best business practices, great employment opportunities and contribute to the overall development of the city,” said chief minister K Chandrasekhar Rao adding that Ikea will work as a catalyst in the government’s development plans.
“India is a very promising market for IKEA as it offers us the opportunity to source, retail, conduct CSR initiatives through IKEA Foundation and empower social entrepreneurs through Next Generation projects. Our focus now is to bring all of it together in Hyderabad,” said Juvencio Maeztu, CEO, IKEA India.
“IKEA coming to Hyderabad will set new benchmarks, not only for the way furniture business is done but also retail in general,” said IT minister K T Rama Rao.
According to KTR, Ikea will impart skill development and training and will create large indirect employment around services, furniture assembly etc besides co-workers in the stores.