Swedish furniture retailer Ikea is scouting for locations in four cities — New Delhi, Bangalore, Mumbai, Hyderabad — to open its outlets, a top company official said on Wednesday.
The company received approval from the Foreign Investment Promotion Board in November 2012 to invest Rs 10,500 crore over a decade, with plans to open 25 stores. A typical Ikea store will be around 350,000 square feet and the company will invest Rs 500 crore on each of them.
“We are in conversations in various cities and the biggest priority for us is Delhi, Bangalore, Mumbai, Hyderabad and we will follow with more,” Juvencio Maeztu, CEO, Ikea India, said on the sidelines of the India Retail Forum.
Maeztu and other senior executives had met officials from the Telangana government in July, in connection with a store in Hyderabad. However, Maeztu said it was still not certain that the first store will open there. A source said that the first store is likely to open in Bangalore and it would take about two years.
Officials said identifying key locations is time consuming, given the huge size of real estate. “Its about metro connection, highway accessibility, it requires a long-term process to really feel confident that everything is right,” Maeztu said.