Iconic furniture retailer IKEA could open its first Indian store in Noida, with company executives set to begin scouring the massive suburb -- a location thought to be attractive for its infrastructure, relatively lower rentals and proximity to the national capital -- for a suitable site.
IKEA has committed to invest Rs. 10,500 crore -- the biggest ever FDI proposal in single-brand retail -- to set up several mega stores in India, hit by a crippling economic slowdown.
"By 2020, we plan to double our turnover and that is possible only by tapping into the vast consumer base in India. UP is one of the priority states for us and we will be aiding in growth of whole furniture sector by providing low-cost quality products,” Jeff Dolin, property manager, IKEA India, said Wednesday.
The Swedish company, founded in 1943, is a global design and lifestyle brand leader with a secretive business model that could transform India's home décor market with its contemporary product line-up. It also runs a food division in many countries.
Dolin, along with other company executives, met top UP officials in Lucknow in Wednesday for talks to set up their “first integrated unit for furniture manufacturing and selling,” a UP government statement said.
“IKEA officials would visit Noida and Greater Noida early next month to see for themselves the infrastructure and identify an appropriate site,” the statement said.
IKEA currently runs 342 stores globally. A typical IKEA spreads over several acres of land comprising of showroom, warehouses and a café.
Dolin said the company will create a lot of work opportunities for local manufacturers. "Our expansion in UP will depend on our experience from the first store," he said.