The Swedish home furnishings company, The IKEA Group, has acquired a 14-acre site in Bengaluru, which will enable it to set up its third store in the country after Hyderabad and Mumbai. Of the 25 stores planned in India by 2025, the first IKEA India store in Hyderabad will open early next year.
The 14-acre land parcel, acquired from the Bangalore Metro Rail Corporation, is located at Nagasandra on Tumkur road. The store is planned to be around 4.5 lakh square feet and is expected to have more than 5 million visitors per year. It will be connected to the Nagasandra metro station to offer easy access for the customers.
Besides creating many new job opportunities, IKEA’s entry will also have a positive impact on the GDP, infrastructure and local communities, while providing a unique home furnishings destination for many people in Bengaluru.
Karnataka Chief Minister Siddaramaiah in a statement said, “IKEA will bring best business practices, many employment opportunities, infrastructure development and contribute to the growth of the retail sector in the State. IKEA will work as a catalyst in our development plans.”
IKEA India Chief Executive Officer Juvencio Maeztu said, “Karnataka is a highly strategic and important market for IKEA. Along with retail stores, IKEA’s purchasing team will also grow local sourcing and engage with local artisan and communities in many projects. Our first Indian sofa supplier is from Karnataka supplying to our global stores.”
“Each IKEA store will employ 500-700 co-workers directly and another 1,500 people indirectly in different services. We are committed to inclusion and diversity and having 50 per cent women in our organisation at all levels is non-negotiable,” he said.
This land acquisition reiterates IKEA’s long-term plans in India. The company is evaluating suitable sites in the cities of Bengaluru, Mumbai, Delhi & NCR, Chennai and Pune and plans to open 25 stores in India by 2025.