"We are also scouting for more land in Maharashtra to build our own warehousing facilities over the next two to three years, and have earmarked an outlay of Rs 7.5 billion for this," he said.
The distribution centre has been set up to service its first store scheduled to be opened in Hyderabad by the middle of the year, followed by the second store in Mumbai in 2019.
The company has also purchased land in Bengaluru and Gurgaon to open more outlets. Ikea India plans to set up 25 stores by 2025, investing Rs 105 billion.
The company has so far hired 100 people for its distribution operations in Pune, and is looking to employ at least 200 more there.
"We have hired about 100 people and 50 per cent of them are women. We are looking to hire another 200 people once our distribution operations are running in full steam," he said.
The company will employ 600-700 people per unit, he said.
Ikea will operate a non-bonded warehouse for domestic goods, and a custom warehouse which will stock imported goods, Patel said.
Last year, Ikea India had committed to double its local sourcing from Euro 318 million to Euro 600 million by 2020.
According to the retail policy, the overseas companies
have to mandatorily source 30 per cent of their wares locally, preferably from small suppliers.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.