IKEA to open first store in Hyderabad
Dated: March 09, 2016
Swedish furniture retailing giant IKEA will open its first store in India at Hyderabad in the second half of 2017 even as it scouts for more sites in Delhi-NCR, Mumbai and Bengaluru. The company, which received government approval in 2013 for its Rs 10,500 crore proposal to open retail stores under 100% FDI, plans to open 25 stores by 2025 in nine Indian cities.
"We will open our first store in Hyderabad in later half of 2017. Digging for construction of our first store in India started this week," said IKEA Asia Pacific Retail President Mikael Palmquist
IKEAs first store in Hyderabad will be a massive 4 lakh square feet in size and will include all features of a global IKEA store, including restaurant and play and development area, he added. In July last year, the company had announced purchase of 13 acre land close to the IT hub in Hyderabads HITEC city. Bullish on the Indian market, Palmquist said IKEA expects its stores in the country to be among "the most visited stores in the world" and hence the company has prepared for it by planning bigger restaurants and more seating capacity to suit high visitation stores.
Elaborating on IKEAs expansion plans in India, he said: "After Hyderabad, in the first phase of growth, we plan to open stores in Delhi, Mumbai and Bangalore. We are searching for land in these cities. We want to open more than one stores in locations where our stores come up."
At present, IKEA sources products worth Euro 300 million for its global operations from India. Palmquist said there is a need for harmonisation of laws related to composition of raw materials in India with Europe so that more exports can happen from here.