Post the nod from the Foreign Investment Promotion Board (FIPB), world's largest furniture retailer IKEA has announced its 10-year plan of investing ₹12,500 crore in India to set up 25 stores across major Indian cities.
To set up a single store, IKEA would require ₹500 crore. The Swedish furniture retailer added that the first batch of stores will be opened in Mumbai, Delhi, Hyderabad and Bangalore.
Ikea India chief executive Juvencio Maeztu said it was difficult to announce a launch date at this point. However, he added that the company is looking at setting up stores at all major metro cities and has been looking out for areas measuring 3,50,000 sqft close to the highways for its stores.
Earlier, FIPB had approved Ikea India's request of investing ₹10,500 crore. Following the approvals, the Swedish furniture maker plans to set up its first store in Bangalore or Hyderabad within a few years, reported PTI.
"For now, the priority is the right location and we are focusing on all major metros, the right location and the good price of land, which is important for us to start right," Ikea India chief executive Juvencio Maeztu said.
Ikea is known for setting up stores on expressways, close to large cities. It sells various household furniture with about 9,500 varieties of products. Ikea has plans to tie up with local suppliers for raw material for its upcoming stores in India.
Ikea Group has 298 stores in 26 countries. In 2012, the firm opened 11 new stores in nine countries with 8,000 new employees.