The company plans to open 25 such stores by 2025 with the Mumbai store slated to open in early 2019. It plans to invest Rs 10,500 crore in India and also launch an online version in 2019.
Swedish home furnishing major IKEA today opened its first store in India, kicking off its retail journey five years after it received approval to invest in the country's single-brand retail sector.
The store, spread over 13 acres in Hitec city, Hyderabad, was supposed to open in July but was delayed to ‘fulfill quality commitments’. The company plans to open 25 such stores by 2025, with the Mumbai store slated to open in early 2019, followed by Bengaluru and Delhi-NCR.
IKEA Group CEO Jesper Brodin told PTI the company has also identified four more cities in India where it plans to set up its stores but did not disclose details.
Minister @KTRTRS along with Klas Molin, Ambassador, @swedeninIndia, Jesper Brodin, CEO, IKEA Group and Peter Betzel, CEO, IKEA India formally inaugurated IKEA store in Hyderabad today. @jayesh_ranjan, Prl Secy, IT and Industries Dept was also present. pic.twitter.com/kG7WGzNJbn
— Min IT, Telangana (@MinIT_Telangana) August 9, 2018
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 crore on the Hyderabad store alone, which has a built up area of 4 lakh sq ft.
IKEA researched the Indian market by visiting more than 1,000 homes in Hyderabad. "We knew from the beginning that we cannot be arrogant and try to copy and paste. We really put a lot of effort into listening and understanding," Juvencio Maetzu, Chief Financial Officer of IKEA, told CNNMoney.
The company will offer more than 7,500 products, of which 1,000 were produced in India and nearly 1,000 products will be priced below Rs 200.
Known for selling products that are to be assembled by the consumer, the furniture retailer has partnered with UrbanClap to offer assembly services in India. In addition, 150 out of the company’s 950 employees will be dedicated to assembly and delivery services.
The company employs another 1,500 people indirectly and plans to employ 15,000 people as it expands its India operation. Commenting on the company's recruitment plans, IKEA India HR Manager Anna-Carin Mansson told PTI the company's aim is to make retail an attractive career choice for young people in the country. IKEA said it has adopted a ‘non-negotiable’ approach to hire 50 percent women at all levels in India, even ‘including forklift drivers and assembling co-workers’.The Hyderabad store, in which the company has invested Rs 1,000 crore, will also come with a 1,000 seater restaurant which will serve its famous Swedish meatballs, among other things.