IKEA to invest Rs 6k cr to expand ops in Maha; Navi Mumbai store opens today

To broaden its reach in Mumbai, the company will open two additional IKEA city centre stores in the city next year. In Pune, the retailer has an online presence as of now. The firm has set a stiff target of reaching 100 million Indian customers by 2022 and plans to foray into Bengaluru and Delhi-NCR in the coming years.

IKEA plans to invest Rs 6,000 crore to expand its operations in Maharashtra by 2030. The investment is part of Rs 10,500 crore the Swedish retailer has earmarked for India.

The company, which is set to launch its big-format store in Navi Mumbai on Friday, has invested nearly Rs 1,500 crore on the project. The store marks the company’s second outlet in India and the first big-format one in Maharashtra. IKEA’s India expansion is expected to create room for employment opportunities. In a statement, the firm said it will provide over 6,000 jobs in the state, of which 50% will be for women. The Navi Mumbai store alone will employ close to 1,000 coworkers, the firm claims.

“We are in India for the long term,” a company official said during a virtual press conference on Thursday.

Peter Betzel, CEO & chief sustainability officer at IKEA India, said Mumbai is the first omnichannel market for the company in the country. Customers can opt for physical visits to the store, shop online or avail the brand’s click and collect service.

IKEA opened its first India store in Hyderabad in August 2018. About six million customers have visited the store premises so far, the firm said.