World's largest furniture retailer IKEA on Friday said it has purchased its first land in the country in Hyderabad, moving closer to its plan of setting up 25 stores in India at an investment of Rs 10,500 crore over the next decade.
"This step is yet another affirmation of IKEA's expansion plans in India. The company is in parallel evaluating suitable sites in the cities of Bengaluru, Mumbai, and Delhi NCR (National Capital Region) to open 25 stores in the long-term," the company said in a statement.
IKEA bought 13 acre land close to the IT hub in Hyderabad's HITEC city.
In May 2013, the government cleared the proposal of the Swedish furniture major to invest Rs 10,500 crore for setting up single brand retail stores.
IKEA India chief executive officer Juvencio Maeztu said: "India is a very promising market for IKEA as it offers us the opportunity to source, retail, conduct CSR initiatives... Our focus now is to bring all of it together in Hyderabad as we have bought our first land to build an IKEA store."
In September last year, Maeztu said that the company is looking at "investing around Rs 10,500 crore to set up 25 stores at a cost of Rs 500 crore each."
IKEA, which has been sourcing from India for the last 28 years, plans to double its volumes in the country by 2020, the company said.
The company said it recently organised three 'Make More in India' campaigns, including one in Telangana, to look for new suppliers.
Around 45,000 people work directly for 50 IKEA suppliers in India.