IKEA Group acquires land in Bengaluru

June 01, 2017 12:31 am | Updated 12:31 am IST

The Swedish home furnishings company IKEA Group on Wednesday said it had acquired its first land parcel in Bengaluru. The 14-acre site is strategically located in Nagasandra on Tumakuru Road and has been acquired from the Bangalore Metro Rail Corporation.

It is planned to be around 4.5 lakh square feet and is expected to host more than 5 million visitors per annum. It will be connected to the Nagasandra metro station to offer a sustainable commute option for customers.

This will be the company’s third in India after Hyderabad and Mumbai. “The first IKEA India store in Hyderabad will open early next year,” the company said in a press release.

Earlier, in 2016, IKEA had announced plans to invest ₹2,000 crore in Bengaluru and open four stores. According to the company, each IKEA store will employ 500-700 co-workers directly and another 1,500 people indirectly in different services.

There are currently 390 IKEA stores in 46 countries with a sales volume of €34.2 billion.

The IKEA Group is the first major single-brand retailer to get FDI approval and plans to open several stores in India’s metros.

Commenting on IKEA’s plans, Chief Minister Siddaramaiah said “We are happy that we will soon see an IKEA store in Bengaluru. IKEA will bring best business practices, many employment opportunities, infrastructure development and contribute to the growth of the retail sector in the State. The government is committed to provide the necessary support to IKEA for its future expansion plans in the State.”

IKEA India Chief Executive Officer Juvencio Maeztu said, “Karnataka is a highly strategic and important market for IKEA. Along with retail stores, IKEA’s purchasing team will also grow local sourcing and engage with local artisans and communities in many projects.”

The company is evaluating suitable sites in Bengaluru, Mumbai, Delhi & NCR, Chennai and Pune as part of plans to open 25 stores in India by 2025.

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