IKEA to invest ₹3,000 cr in Maharashtra

Our Bureau Mumbai | Updated on February 22, 2018 Published on February 22, 2018

Swedish co to set up multi-format stores, experience centres

Swedish furniture retailer IKEA said it will invest ₹3,000 crore in Maharashtra to set up multi-format stores as well as experience centres.

The company said it will start online retailing beginning 2019.

“We will be investing ₹3,000 crore over the long-term to set up multi-format stores and experience centres,” said Patrik Antoni, Deputy Country Manager, IKEA India.

The Navi Mumbai store of IKEA is expected to be operational by 2019.

The Swedish-headquartered retailer plans to open 25 stores across the country by 2025. Its first store in Hyderabad is expected to be opened later this year.

The Maharashtra operations will be led by Per Hornell.

Antoni, meanwhile, said that the company had recently invested ₹750 crore in setting up IKEA-owned distribution centre.

Asked about its online retailing platform, Hornell said that the company was still working on it.

“We expect to adopt a multi-channel approach. The online retailing too, will be launched in a phased manner”.

He said the company was committed to its ₹10,500 crore investments for the Indian market. Antoni did not specify if the company planned to scale up the investment targets.

Speaking about the sourcing opportunities, Maharashtra Operations Head Per Hornell said the company is working with suppliers in categories such as textiles, carbon steel, metal and plastics.

Globally, India accounts for about three per cent of the retailer's total sourcing.

The company is also looking to partner with State governments to source local sustainable raw materials including bamboo, jute, rubber wood, banana barks, coir and water hyacinth.

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Published on February 22, 2018
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