IKEA to invest big on India, set to double sourcing to $650 million

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IKEA, the largest furniture retailer in the world has its eyes set on India, with the company looking at India operations in the near future. Hyderabad will house the first IKEA store in the country, with it likely to be operational by the end of this year.

Ikea
Hyderabad will house Ikea’s first Indian store, with over 7,500 products on sale.

While IKEA hasn’t opened any stores yet, it has a close relationship with India, with it sourcing products worth around $350 million currently. The company aims to almost double this to $650 million by 2020.

Asian countries are the highest suppliers of products to Ikea, with China topping the list. India has around 50 suppliers, with close to 50,000 individuals employed directly in the supply process.

State No. of suppliers
Uttar Pradesh 9
Tamil Nadu 7
Maharashtra 7
Karnataka 6
Gujarat 6
Haryana 5
Rajasthan 3
Punjab 3
Kerala 3
Madhya Pradesh 1

 

The company will open its second store in Mumbai, expected to be operational next year. It is also looking at Delhi, Bengaluru, Gujarat, and Tamil Nadu for future stores. Each store will employ around 2,000 individuals for smooth operation, with 50 per cent of all employees expected to be women.

A total of 25 stores will be opened by 2025, with the investment standing at Rs.10,500 crore.

The Hyderabad store will house over 7,500 products, with a restaurant, play arena, and day-care centre for kids. IKEA expects six million customers a year at this store.

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