Swedish furniture giant IKEA today said it will build a 400,000-sq-ft store on the 23 acre land in Navi. IKEA acquired this land from Tata Group firm Rallis earlier this year.
The plot was bought for Rs 214 crore and the site is located in Turbhe, on the Thane Belapur Road here.
IKEA plans to employ 500 people in the store and expects to have 5 million visitors per year. It did not say when it will open its store here.
“The company in parallel is evaluating suitable sites in the cities of Bangalore, Mumbai and Delhi & NCR and plans to open 25 stores in India by 2025,” IKEA said in a statement today.
The plot Navi Mumbai is the second land buying done by IKEA in the country after it bought 13 acre plot near Hitech City in Hyderabad. The chain also plans to build a 400,000 sq ft store in Hyderabad.
In April this year, there were reports that IKEA is in talks with Oberoi Realty to buy 350,000 sq ft space in the latter’s upcoming project in Borivali here for Rs 900 crore. It has not been confirmed by both the companies.
Juvencio Maeztu, Chief Executive Officer, IKEA India, said, “Along with setting up retail stores, we will expand our supplier landscape and grow local sourcing as much as possible. Each IKEA store will employ 500-700 co-workers directly and another 1500 indirectly, engaged in providing services. We are committed to having 50 per cent women in our organization at all levels and giving equal opportunities to all. We will bring a unique shopping experience through our inspiring stores offering affordable home furnishing products for the many people in Mumbai.”
IKEA has been sourcing from India for the last 30 years and it plans to double its sourcing volumes by 2020. Through it 50 suppliers, IKEA today employs 45,000 people directly and about 400,000 in the extended supply chain. It has recently organized three “Make More in India” campaigns, including one in Mumbai to look for new suppliers.
The IKEA Group has 321 stores in 28 countries. In addition, there are more than 40 stores run by franchisees outside the IKEA Group.