New Prospects for India- IKEA to Increase Investment in India
India’s exponential industrial growth over the past few years has made it a very attractive pool for foreign investors.
The same brings IKEA, a Swedish-founded multinational group whose products have gained a massive mass appeal all through-out. India’s ever-growing prospects in the retail sector have brought in the much-awaited brand to the country and Hyderabad becomes the first Indian city to witness the store.
The very first IKEA store launched in Hyderabad on August 9th and the city couldn’t hold on to its excitement. The company heads further delighted every ear by announcing its plan to open a total of 40 IKEA store.
The leading furniture brand had previously announced its plan to open 25 stores in India with an investment of Rs. 10,500 crore by 2025.
The IKEA officials reported that they would propose the Indian government to approve more Foreign Direct Investment (FDI) but nothing about the agenda of the further investment has been spoken about.
IKEA is revising its investment plans seeing the present robust growth of India in terms of the economic growth and geographic proceeds.
Increase in real estate prices is one of the major reasons for IKEA to revise its investment strategies.
IKEA finally opened its first store in Hyderabad since 2013 after receiving approval from the government to open retail stores with an investment of Rs. 10,500 crore in the country.
As per reports from Patrik Antoni, the Deputy CEO of IKEA India said that by far an investment of Rs. 4,500 crore has been done which includes the land too.
All these are the results of India’s booming industry with more young enthusiasts which are gradually creating a positive scenario.
Peter Betzel, the CEO of IKEA India has further announced that after Hyderabad it will be Mumbai in the next summer and then Bengaluru followed by Delhi.
Jesper Borodin, CEO of IKEA Group told the media that it was a moment great joy and honor of the group to extend its brand further, a journey that was started all the way back in 30 years when IKEA joined hands with the local Indian manufacturers.
Mr. Borodin also promised that the products of IKEA will be affordably priced without compromising on its quality. Also, he said the IKEA will surely come up with more stores and digital platform.
At the press conference Ramesh Abhishekh, Secretary, Department of Industrial Policy & Promotion (DIPP) stated that by 2020 Indian retail sector is expected to rise to $1 trillion which at present is $600 billion.
He also said that India could have had more foreign investment entry like that of IKEA had the retail sector not been in the unorganized sector.
The first IKEA store in Hyderabad has been spread over 13 acres sprawling land in the center of the HITEC City, the information technology hub. The 400,000 sq ft standing store set up with an investment of Rs. 1,000 crore, has come up with the largest restaurant for IKEA anywhere, with a seating arrangement of 1,000, serving Indian and authentic Swedish cuisine.
The store has almost 7,500 affordable home furnishing products amongst which, over 1000 products are priced below Rs. 200.
A total of 950 employees with over 50% woman staff, the IKEA Hyderabad store intends to recruit 15,000 people more in the next few years.
IKEA currently has 403 IKEA stores running successfully in 49 countries with a sales volume of 38.3 billion euro.
Founded by late Swedish entrepreneur Ingvar Kamprad, in 1943, IKEA witnessed 936 million customers in the FY17 and over 2.3 billion online purchasers.
Article Source: https://www.ndtv.com/india-news
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