With its first store in India set to open next year, Swedish furniture retailer Ikea will consider setting up a production unit in the country in order to fully tap the potential of ‘big middle class’ consumers in the market.
The company, which has already purchased land in Hyderabad and Mumbai to start retail operations, is also looking to double sourcing of products for its global operations from India by 2020.
“It is important for us to set up our production (unit) in India,” Ikea Group President and CEO Peter Agnefj told PTI here.
Explaining the reasons to have production facilities in India, he said: “On one hand that would support the growth of the economy and secondly, what we do is that we sell products, which are inexpensive. You can not distribute these inexpensive products long distances because if you do that then you would ruin the margin of the product.” Agnefj said: “So it’s important for us to go for the local production. If we have the right technology, right raw materials which is existing there then we can combine with the knowledge of Ieka and turn into a fantastic product.” —PTI
