IKEA to open Navi Mumbai store Friday; plans more investment in Maharashtra

Topics IKEA

The world's largest furniture retailer IKEA said it will open its second store in the country in Navi Mumbai on Friday and plans to invest around Rs 6,000 crore in Maharashtra over the next 10 years.

The new store is its first big format store in Maharashtra, spanning over 5.3 lakh sq ft and situated near the Turbhe local railway station and stocks over 7,000 home furnishing products.

IKEA also plans to set up two city centre stores in Mumbai, a company official said.

The IKEA city centre stores would be smaller than the Navi Mumbai flagship store, which is a big format outlet.

"With a planned investment of Rs 6,000 crore by 2030, IKEA aims to meet 25 million people in Maharashtra. IKEA will provide over 6000 jobs, of which 50 per cent will be for women," the company said.

IKEA India, part of the Ingka Group, is also working on its third store in India at Bengaluru, followed by Delhi, though it did not share any timelines for these stores.

Peter Betzel, CEO and chief sustainability officer at IKEA India, told reporters that Mumbai is the first omni-channel market for the firm.

"Today marks a major milestone as Mumbai is the first omni-channel market for IKEA in India... people can now visit our store, shop online or buy their favourite and affordable products through our 'Click & Collect' service," said Betzel.

The new store will provide over 600 jobs, of which 50 per cent will be for women.

The Navi Mumbai store will house the largest children's area 'Smaland' for IKEA globally, along with one of its largest 1,000-seater restaurants with almost 100 per cent locally-sourced food range, the company said.

IKEA opened its first retail store in India at Hyderabad in August 2018, followed by online stores in Mumbai, Hyderabad and Pune.

Talking about Mumbai, IKEA India Market & Expansion Manager and Maharashtra MD Per Hornell said the city has good potential with good home furnishing interests.

"We are at the moment working on two city stores, which will be opened up during the coming year. These stores would be in the size of around 80,000 sq feet," he said.

The company would also continue to invest in its e-commerce solutions, strengthening the customer interface and develop logistical capacity under its omni-channel approach, he added.

"The next destination is Bengaluru, where we have bought land," Hornell said, adding construction is ongoing and the company is trying to complete it as early as possible.

"We are firming our plans for Delhi as well," he said, but added that it is too early to share any timeline for that.

For Delhi, the company is presently going through discussions for land in Noida and Gurgaon as well.

IKEA aims to reach 100 million Indian customers by 2022 through its omni-channel approach, he said, adding that the company has a long-term commitment for the Indian market.

"IKEA is not a company for a sprint but a company for a marathon and our engagement and commitment to India, it does not need to meet short-term goals to justify. Our belief and role in India for IKEA goes beyond that type of... thinking. It's always the long-term consideration...," he added.

Ingka Group is a strategic partner in the IKEA franchise system, operating 378 IKEA stores in 30 countries. Ingka Group has three business areas -- IKEA Retail, Ingka Investments and Ingka Centres.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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