IKEA to invest close to Rs 5,500 crore for shopping mall in Noida

Ingka Centres, part of the Ingka Group that includes IKEA Retail and Ingka Investments, plans to invest close to Rs 5,500 crore (over 600 million euros) for a shopping mall spread across a 48,000 square metre plot in Noida, Uttar Pradesh.

The company said the plot will be developed into an IKEA anchored retail destination, adding to Ingka Centres’ 45 existing Meeting Places around the globe. The acquisition reinforces the Ingka Group’s long-term expansion plans in India, it said.

The land allotment for the commercial plot located in Sector 51 was transferred by the Noida Authority to IKEA on February 19. The authority has received Rs 850 crore from IKEA.

The transfer was made at a programme held in the presence of top Noida Authority and IKEA officials and the Uttar Pradesh Chief Minister Yogi Adityanath and UP Cabinet Minister Satish Mahana joined the event virtually from Lucknow.

The chief minister of UP welcomed IKEA and assured all required support to get the project started soon.

“Rs 850 crore have been received by the Noida Authority for the commercial land and planned investment for the project is Rs 5500 crore. The project will be completed within seven years. It will include a shopping mall, retail outlets, a residential facility and meet centres spread across more than 47,500 sq m. The total area of the project is 49,500 sq m. More than 2000 people will receive employment. Around Rs 60 crore stamp duty has also been deposited by Ikea,” Praveen Mishra, additional chief executive officer, Noida Authority, told Moneycontrol.

IKEA will also construct the walkway connecting Delhi Metro’s Blue Line with Noida Metro’s Aqua Line’s in sector 51 Metro station as part of the deal.

“They have also promised to provide overhead connectivity for commuters of Blue Line and Aqua Line. This was part of the deal,” Mishra said, adding, parking for 250 cars will also be provided by IKEA within the plot area.

This announcement comes close on the heels of launching the second IKEA India store in Mumbai in December 2020. IKEA Hyderabad, which was the first store in India, has been open for more than two years and the company operates online in Mumbai, Pune and Hyderabad.

Ingka Centres’ move to India is part of its global vision to expand into new markets. Its IKEA anchored destinations deliver a powerful retail attraction and new experiences reflecting the needs of the local communities. India will play a central role in Ingka Centres’ vision to shape Meeting Places with destinations that appeal to ‘many people’, IKEA said in a statement.

Noida has been chosen as the perfect location for a new retail-led destination that will match the lifestyles of the fast-growing population across India’s National Capital Region, Ikea said in a statement.

“India is an exciting and dynamic market, and today’s acquisition is a key milestone in our strategic vision to transform the business in response to the changing retail environment. Millions of people live within easy reach of Noida and we want to build emotional connections with them, by bringing as much value as we possibly can to their lives and communities. We look forward to presenting our Meeting Place concept to this market, a concept built around local communities’ needs, and which goes far beyond shopping,” said Cindy Andersen, Ingka Centres Managing Director.

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Ingka Centres’ Meeting Place concept is very different from the typical mall; providing a sustainable mixed-use destination that brings the ‘many people’ together for multiple reasons. Meeting Places are always anchored around an IKEA store and are designed to meet the needs of local communities bringing value for customers, communities, and partners.

Peter Betzel, CEO and CSO, IKEA India said, “We are happy to announce the first IKEA store in Noida together with Ingka Centres. Delhi NCR is one of our most important markets in India and we will reach many people with our beautiful, affordable, well designed and sustainable home furnishing products. This next step in our expansion is in line with IKEA’s ambition to meet 100 million people in India in the coming years.”

Ingka Centres’ detailed plans for the project will be announced in the near future, the company said.