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Swedish firm IKEA buys land in Hyderabad for retail store

Describing India as a very promising market for IKEA as it offers opportunity to source, retail, conduct CSR, IKEA India CEO Juvencio Maeztu said the store would offer a unique shopping experience.

July 10, 2015 04:25 pm | Updated 04:25 pm IST - Hyderabad:

Swedish furniture major IKEA has purchased 13 acres near the IT hub of Hyderabad for setting up retail store. The company announced its first land purchase in India on Friday, after IKEA India CEO Juvencio Maeztu met Telangana IT Minister K.T.Rama Rao, Industries Minister Jupally Krishna Rao and senior officials.

“This step is affirmation of IKEA’s expansion plans in India... evaluating suitable sites in Bengaluru, Mumbai, and Delhi NCR [too] to open 25 stores in the long term,” a statement said. The 13 acres site is close to Hi-Tec City, the IT hub of Hyderabad.

Describing India as a very promising market for IKEA as it offers opportunity to source, retail, conduct CSR... IKEA India CEO Juvencio Maeztu said the store would offer a unique shopping experience and affordable home furnishing products.

Half of workforce women

In a statement, on the land purchase agreement, he said Hyderabad offers business friendly environment with a proactive and progressive government. “Its unique socio-cultural diversity resonates with our core belief in diversity... an enabler for our goal to recruit 50 per cent women managers and co-workers.”

Chief Minister K. Chandrashekar Rao termed said: “It’s a matter of great pride for Telangana that IKEA has initiated its expansion plans in Hyderabad. The government is committed to provide necessary support to IKEA for its future expansion plans in the State.”

IT Minister Mr.Rao said: “IKEA coming to Hyderabad will set new benchmarks, not only for the way furniture business is done but also retail in general. IKEA will impart skill development and training to the youth and will create large indirect employment around services, furniture assembly etc besides co-workers in the stores.”

Though the release did have informatio on the investment proposed, the Telangana Chief Minister’s office had in May this year said that IKEA Group woud be investing Rs.500 crore and setting up its facility on 50,000 sq meters. IKEA, the office had said, has agreed to purchase land at Rs.19.21 crore per acre in the Knowledge City at Raidurg from the Telangana State Industrial Infrastructue Corporation.

The release from the company on Friday said IKEA has been sourcing from India for 28 years and plans to double the sourcing volumes by 2020. Around 45,000 people work directly for 50 IKEA suppliers in India.

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