Swedish home furnishings major IKEA today opened its first store in India in Hyderabad. The company, which has employed 950 people directly and another 1,500 indirectly at its store here, plans to hire 15,000 in the coming years as it expands operations in India.
IKEA Group CEO Jesper Brodin said the opening of the first store in India marks a milestone in the company's journey here which began over three decades ago through sourcing of products.
Jesper stated, “We have a long-term commitment to India, which is an important market for us.”
The store here is the first of 25 such outlets planned to be set up in India by 2025. It was in 2013, IKEA received the nod from the government to invest Rs 10,500 Cr in single-brand retail.
The Swedish retailer had originally planned to open its first store in India by 2017, but it was delayed. Out of the total outlay of Rs 10,500 crore, the company has so far invested Rs 4,500 crore in its different projects in India. It has invested Rs 1,000 Cr on the Hyderabad store alone, which would have a range of around 7,500 products. The store is spread over 13 acres of land and has a built-up area of 4 lakh sq ft.
The company said it would increase its investments in India as it looks to accelerate expansion in the country faster than it would usually do elsewhere. Besides retail, IKEA said it will also enter ecommerce segment in India by next year, besides exploring small format stores as part of its India expansion plans.
After Hyderabad, Ikea's second store would be in Mumbai next year, followed by Bengaluru and Delhi-NCR. The retailer has also identified four more cities in India where it plans to set up its stores but did not disclose details.