Swedish furniture retailer Ikea is firming up plans for its India foray.
The company is scouting for store locations and looking at ways to source locally.
“The most important priority is to find the right location for our stores at the right price in major cities with easy access to public transport (metro) and good road network,” Ikea said in a statement.
The stores are expected to be spread across 3,00,000 square feet and therefore, location is going to be the key, experts said. The Ikea release said the company has already begun discussions with authorities and representatives in the main cities.
Earlier, Mikael Ohlsson, CEO, Ikea, had said that the company has been scouting for land in Haryana, Andhra Pradesh, Maharashtra and Karnataka. It is also focusing on local sourcing. “We are focused on finding suppliers with the right competence and strategic fit, at the same time developing and growing existing suppliers. A dedicated team is focusing on new business development for global, regional and future local supply.” Ikea had said.
In fact, the company has also built a product development centre with an aim to encourage product development, optimise production, contribute to innovation and material development.
The retail furnishing major also said that apart from textiles, the company will also focus on other materials such as wood, metal, plastic and lighting.
Earlier this year, the government paved the way for Ikea’s entry into India by giving approval to its investment plans of Rs10,500 crore. This is the largest investment made by any single brand retailer in India till date.
But it may be a while before Ikea is able to set up stores in India. As per reports, the company has been focusing on strengthening its back end and it is likely to take another three-four years for a store to come up.
The firm had proposed setting up 10 furnishing and homeware stores as well as allied infrastructure in over 10 years in India. Subsequently, it plans to open 15 more stores.
Getting it right
300,000 sq ft – The size of stores the company may look at
Rs10,500 crore Ikea plans to invest in India
10 stores it plans to initially open in the country.