IKEA leases out one lakh sq ft land in Bengaluru
Swedish multinational furniture retail conglomerate IKEA is eyeing a small-store format, spread over 100,000 sq ft, in Whitefield, Bengaluru.
IKEA, which opened its first store in Hyderabad in 2018, has also invested in a 14 acre land parcel in Nagasandra, Bengaluru, for a large format store.
Earlier, IKEA India had told the media that small format stores would be city centre stores and would have the same look and feel as any other IKEA store.
The small format store in Whitefield will have a smaller range on display, and the presentation will be different. IKEA has set up a 270,000 sq ft distribution centre in Pune in partnership with IndoSpace Industrial Park, which is leased at a cost of Rs 20 crore per year. It has also earmarked a Rs 750 crore expansion plan.
4th Indian Cement Review Conference 2021
Earlier, the company planned a further investment of Rs 100 crore in Pune to add another 250,000 sq ft of space. The Swedish company employs 1,000 people per store and 1,500 people indirectly and also sources 1,000 products locally, pricing them at less than Rs 200 per piece. It sources from 50 local manufactures, and its annual exports from India are worth over Rs 2,555 crore.
The retail giant expects to expand in areas such as merchandising, store operations, supply chain, and allied assembly services.
The first big format store opened in Turbhe, Navi Mumbai, and will. Currently, the company has invested Rs 10,500 crore in India and has spent half that amount till now.
Also read: IKEA to launch its first mall in India
Also read: IKEA to invest Rs 60 bn in Maharashtra