Ikea buys 23 acres in Mumbai, plans to open 400,000-sq-ft store

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NEW DELHI: Ikea, the world’s largest furniture retailer, announced Friday the purchase of a land parcel in Mumbai, for its second store in India after Hyderabad.

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The Swedish company has bought 23 acres (9.31 hectares) in Navi Mumbai along the Thane-Belapur Road and plans to open a 400,000-sq-ft (37,161.22 sq m) store there.

Ikea’s first store in the country is expected to open in early 2017.

The proposed Mumbai store is expected to draw more than 5 million visitors a year, the company said in a statement, while explaining that the location has good access to public transport as it is next to a suburban railway station, Turbhe, located on the Thane-Belapur road.

The company is also evaluating suitable sites in Bengaluru and the National Capital Region centered around Delhi and plans to open 25 stores in India by 2025.

“Maharashtra is one of the most important markets for Ikea. Along with setting up retail stores, we will expand our supplier landscape and grow local sourcing as much as possible. Each Ikea store will employ 500-700 workers directly and another 1,500 indirectly, engaged in providing services. We are committed to having 50 percent women in our organization at all levels and giving equal opportunities to all,” said Juvencio Maeztu, CEO, Ikea India.

Ikea has been sourcing from India for the past 30 years for its global stores. It currently has 50 suppliers in the country with 45,000 direct employees and 400,000 people in the extended supply chain.

The company is one of the first large global retailers to have got permission for single-brand retail following the foreign direct policy announcements in multi-brand and single-brand retail in Sept. 2012. TNS

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