Exclusive: Retail giant Ikea scouting for 25 acres of land in South Delhi, Dwarka areas

IKEA

Ingka Centres, part of the Ingka Group, which also includes IKEA Retail and Ingka Investments, is scouting for land in the national capital, preferably in areas like South Delhi and Dwarka, sources aware of the matter told Moneycontrol.

The sources, however, refused to divulge the details about the pricing of the land offered to the Swedish retail giant by the Delhi Development Authority (DDA). According to real estate experts, the price of a licensed or sanctioned plot in South Delhi and Dwarka areas will be around Rs 50 crore to Rs 75 crore per acre. A government official in the know said that the retail giant had been looking for suitable plots of 25 acres preferably in these areas.

Representatives of Ingka Centres had approached DDA seeking a large land parcel to set up its store but the talks were not fruitful, as per sources at the authority. Undeterred, the retailer approached DDA seeking land for its store once more.

“Earlier they were seeking a large land parcel, anywhere in Delhi, but the pricing did not suit them. But recently an IKEA delegation has again met the top authorities in DDA and resumed the talks on buying the land for their store,” the source told Moneycontrol.

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

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Ashish Mishra

Prinicipal Correspondent|moneycontrol

The source added that DDA has asked the IKEA group to first submit a detailed revised proposal in writing but it is yet to do so. DDA will take a call after the proposal is submitted, the source said.

When approached, IKEA in a statement said, “We are exploring to expand our omni channel presence in different markets in India including Delhi NCR (National Capital Region) to bring our home furnishings solutions closer to the many people.”

The group operates 482 IKEA stores in 31 countries and has already established small city stores in Mumbai, Hyderabad, Bengaluru and Navi Mumbai in the first phase of its India plan. Additionally, IKEA has started delivering orders in Pune, Surat and Vadodara.

IKEA has already said its mixed-use retail centre in Gurugram will become operational in late 2025.

Ingka Centres will also be setting up a shopping centre in Noida, with an investment of Rs 5500 crore, as reported by Moneycontrol. For its Noida centre, IKEA had purchased a commercial plot measuring 48,000 square metres (around 11.86 acres) in Sector 51 from the Noida Authority on February 19, 2021, for Rs 850 crore.

The Ingka Group first forayed into India in 2018 with the first IKEA store in Hyderabad, following which it has opened two more of its flagship stores in Mumbai and Bengaluru, along with two city store formats in Mumbai.

Expanding its store presence, IKEA is considering opening stores in Chennai and Pune. This strategic move aims to cater to the growing demand for IKEA products across various Indian cities.

Currently, 30 percent of the products available in IKEA’s Indian stores are locally sourced, and the company is exploring the possibility of promoting exports. IKEA is also looking to develop India as an export hub for wooden furniture, enabling it to diversify its sourcing across the country.