According to experts, the company will sell its products online as well as open franchises and showrooms in different cities, through which a large number of people will get the opportunity of trade and employment. In December 2018, the company had signed an agreement with the Uttar Pradesh government to invest Rs 5,000 crore in Noida and other cities of the state. IKEA started its first centre in Hyderabad at a cost of Rs 700 crore in 2016. IKEA plans to open a total of 25 centres in India by 2025 by investing Rs 10,500 crore. About half of the investment will be made in UP alone. 

 

Apart from the investment, this venture will generate direct and indirect employment of about 50,000 in the next five years. The company will take services of local artisans and workers in its venture which will create another ecosystem of jobs at the local level also.

 

INGKA CENTRES ENTER INDIAN MARKET

Ms Cindy Andersen

Ingka Centres, part of the Ingka Group, (which also includes IKEA Retail and Ingka Investments), has taken its first step to expand into India with a major land acquisition in India. The 47,833 sq. m plot in Noida, Uttar Pradesh 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. 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 the ‘many people’. 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. Located in Uttar Pradesh, 25 km from New Delhi, Noida is renowned for the quality of its infrastructure, open spaces and for being India’s greenest city. The site is close to the city centre of Noida, with excellent transport links.

Total volume of investment into the project is planned to be close to Rs 5,500 crore (above 600 million euros). The new development is expected to create more job opportunities, support infrastructure development, and growth of the organised retail and home furnishings sector in the region. Cindy Andersen, Ingka Centres Managing Director, commented: “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.”