Swedish home furnishing retailer Ikea group announced the purchase of its first land parcel to build retail stores in Hyderabad, moving closer to its plan of setting up 25 stores in India at an investment of Rs 10,500 crore over the next decade.
The 27-billion Euro chain has bought 13 acres close to the information technology hub in Hyderabad, where its first store is expected to be set up by the end of this year or early the next. The company’s proposal for the largest foreign direct investment (FDI) in the Indian retail space secured the Cabinet’s approval in January 2013.
"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 Bengaluru, Mumbai, and Delhi NCR (National Capital Region) to open 25 stores in the long-term," the company said in a statement.
IKEA, which has been sourcing from India for the last 28 years, plans to double its volumes in the country by 2020, the company said. Around 45,000 people work directly for 50 IKEA suppliers in India and about 400,000 in the extended supply chain. It has recently organized three ‘Make More in India’ campaigns, including one in Telangana, to look for new suppliers.
..... Devashree Goenka