IKEA announces its first land purchase in India!
IKEA Group, the leading Swedish home furnishings company today announced the purchase of its first land parcel to build retail stores in India, in the city of Hyderabad. This step is yet another affirmation of IKEA’s expansion plans in India. The company is in parallel evaluating suitable sites in the cities of Bangalore, Mumbai, and Delhi NCR (National Capital Region) to open 25 stores in the long term.
The strategically located, 13 acres site, is close to the IT hub in Hyderabad’s HITEC city and is within easy access to public transport and next to an upcoming metro line.
Talking on the occasion, Chief Minister of Telangana State, K. Chandrashekar Rao said “It’s a matter of great pride for Telangana that IKEA has initiated its expansion plans in Hyderabad. We believe that IKEA will bring best business practices, great employment opportunities and contribute to the overall development of the city. It’s a priority for the state government to attract global brands which can bring modern processes, global know how and innovation. We believe that IKEA will work as a catalyst in our development plans. The government is committed to provide the necessary support to IKEA for its future expansion plans in the state.”
Juvencio Maeztu, Chief Executive Officer, IKEA India, said, “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 as we have bought our first land to build an IKEA store. We will bring a unique shopping experience through our inspiring stores offering affordable home furnishing products.
He further added, “We strongly believe that Hyderabad offers a business friendly environment with a proactive and progressive government. Its unique socio-cultural diversity with a rapidly emerging women workforce resonates with our core belief in diversity and is an enabler for our goal to recruit 50% women managers and coworkers”
K T Rama Rao, Minister of Information Technology and Panchayati Raj, expressed, “IKEA coming to Hyderabad will set new benchmarks, not only for the way furniture business is done but also retail in general. IKEA will impart skill development and training to the youth and will create large indirect employment around services, furniture assembly etc besides co-workers in the stores. That Hyderabad is chosen by IKEA affirms the prestigious status it has and how it continues to be the most favoured destination.”
Jupally Krishna Rao, Minister of Industries, Handlooms and Textiles said, “With IKEA coming to Hyderabad, we strongly believe that besides opening retail stores, it will also contribute to the overall growth of our manufacturing industry and have a positive impact on the local community. We welcome IKEA to Hyderabad and believe our new progressive Industrial Policy will support them to have a smooth opening process”.
IKEA has been sourcing from India for the last 28 years and it plans to double its sourcing volumes in the country by 2020. Around 45,000 people work directly for 50 IKEA suppliers in India and about 400,000 in the extended supply chain. IKEA has recently organized three “Make More in India" campaigns, including one in Telangana, to look for new suppliers.