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IKEA to invest ₹5,500 cr to build mall in Noida

Our Bureau Hyderabad | Updated on February 19, 2021 Published on February 19, 2021

‘Acquisition of 47,833 sq. m plot, amilestone in Ingka Centre’s vision’

Ingka Centres, part of the Ingka Group, which includes IKEA Retail and Ingka Investments, has taken the first step towards expanding in India with the acquisition of 47,833 sq. m plot at Noida in Uttar Pradesh.

This plot will be developed into an IKEA anchored retail destination, adding to Ingka Centres’ 45 existing Meeting Places around the globe. The project may see total investment of close to ₹5,500 crore (more than €600 million).

The acquisition reinforces the Ingka Group’s long-term expansion plans in India. This comes close on the heels of launching the second IKEA India store in Mumbai in December 2020. IKEA Hyderabad, which was the first store in India, has been open for more than two years now and the company operates online in Mumbai, Pune and Hyderabad.

Ingka Centres’ move to India is part of its global vision to expand into new markets. Noida is chosen as it is seen as a new retail-led destination matching the lifestyles of the fast-growing population across the National Capital Region.

Cindy Andersen, Ingka Centres Managing Director, in a statement, said: “India is an exciting and dynamic market, and today’s acquisition is a key milestone in our strategic vision to transform the business in response to the changing retail environment. Millions of people live within the easy reach of Noida and we want to build emotional connections with them, by bringing as much value as we possibly can to their lives and communities.”

Meeting Place concept

Ingka Centres’ Meeting Place concept is very different from a typical mall, providing a sustainable mixed-use destination that brings ‘many people’ together for multiple reasons. Meeting Places are anchored around an IKEA store.

Peter Betzel, CEO and CSO, IKEA India said: “We are happy to announce the first IKEA store in Noida together with Ingka Centres. Delhi NCR is one of our most important markets in India and we will reach the many people with our beautiful, affordable, well designed and sustainable home furnishing products. This next step in our expansion is in line with IKEA’s ambition to meet 100 million people in India in the coming years.”

UP Chief Minister Yogi Adityanath welcomed IKEA and assured all required support.

The Ingka Group is a strategic partner in the IKEA franchise system, operating 378 IKEA stores in 30 countries.

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Published on February 19, 2021
IKEA
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