IKEA to say hello to Hyderabad today

Swedish firm looks to enhance engagement with India

August 09, 2018 12:33 am | Updated 07:38 am IST - HYDERABAD

Hyderabad, Telangana,08/08/2018: Customers admiring newly launched IKEA’s first India store in Hyderabad on Wednesday, the store is 4,00,000 sq. ft. large and is spread over 13 acres in heart of city.--Photo: Nagara Gopal

Hyderabad, Telangana,08/08/2018: Customers admiring newly launched IKEA’s first India store in Hyderabad on Wednesday, the store is 4,00,000 sq. ft. large and is spread over 13 acres in heart of city.--Photo: Nagara Gopal

Swedish home furnishings major IKEA is set to take its engagement with India, from where it has been sourcing for over three decades now, to the next level with its first store in the country opening in Hyderabad on Thursday.

This is a landmark moment, the company said ahead of the opening of the 400,000 sq ft store in the heart of city’s IT hub as IKEA leadership spoke of an impending review of the growth plans for India, essentially to become accessible to customers in more locations at an accelerated speed.

A re-look at the strategy, by the company that had secured government of India approval to invest up to ₹10,500 crore, would translate into the company looking beyond the 25 stores proposed in the country by 2025.

In doing so, the 75-year-old firm would look to invest not just in developing large format stores in major cities, but also in smaller ones in locations elsewhere. Building a strong online presence, backed by the same level of service and delivery available to customers visiting the stores, is another component the company intends to focus on.

“We stay committed... to [provide] great quality [products] at affordable prices to many more in India, [become] accessible,” IKEA Group CEO Jesper Brodin told a large gathering at the store here on Wednesday, adding the firm would find ways to reach customers.

He said while pointing out that IKEA’s journey in India began many years ago and the company “today is a big base of suppliers [from India and enjoyed] very good relationship with many companies.”

A statement from the company said IKEA’s business idea is based on ambition of reaching the many people with thin wallets. It had set a goal to reach 200 million people in the next three years. After Hyderabad, the company would be opening stores next in Mumbai, Bengaluru and National Capital Region. The plan is to open retail stores in more than 40 cities across the country.

Senior executives of IKEA, however, were tight-lipped on when the company would approach the government seeking permission to invest more.

The Hyderabad store, developed with an investment of ₹1,000 crore, is spread over 13 acres and showcase over 7,500 home furnishing products 365 days a year from 10 a.m. to 11 p.m daily. One thousand products are priced below ₹200, the company said. An added attraction to the visitors would be the 1,000-seater restaurant dishing out both Swedish and Indian delicacies.

IKEA India CEO Peter Betzel said the company representatives visited 1,000 households to understand the needs of the customers. The showcase includes several products specific to India market, he added. The store in Hyderabad employs 950 people directly, half of them women, and 1,500 indirectly in services and expects to host close to 7 million visitors each year.

Secretary to the Centre’s Department of Industrial Policy and Promotion Ramesh Abhishek said IKEA sourcing from the country has gone past €350 million mark and offered enormous opportunity for MSMEs.

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