Swedish retail giant IKEA
has acquired a fourteen-acre plot on the outskirts of north Bengaluru
to set up its third store in the country, which will potentially employ over 2,000 workers in the city.
"Karnataka is a highly strategic and important market for IKEA.
Along with retail stores, IKEA's purchasing team will also grow local sourcing and engage with local artisan and communities in many projects," said Juvencio Maeztu, chief executive of IKEA
India, in a statement.
The land, acquired from Bangalore Metro Rail Corporation Ltd, is near the Nagasandra
metro station, in line with IKEA's plan of customers using public transport to get to its stores. The store in Bengaluru
will be the third for IKEA
in the country after those in Hyderabad and Mumbai.
The store in Bengaluru
will create employment opportunities for 500-700 people directly, half of which will be women, and another 1,500 jobs indirectly. IKEA
says it will span 450,000 square feet and is expected to have more than five million visitors per year. The company did not disclose investment numbers.
will bring best business practices, many employment opportunities, infrastructure development and contribute to the growth of the retail sector in the state. We believe IKEA
will work as a catalyst in our development plans," said Karnataka chief minister Siddaramaiah.
The Swedish retailer plans to open 25 stores in India by 2025 across all major Indian metros and then even more in Tier-II cities. Recently, Maeztu told Business Standard that IKEA
has no plans to become an e-retailer, and will only facilitate online orders in cities where it opens its megastores.
While the land in Bengaluru
has been acquired, IKEA
has not disclosed when its store will open its doors to customers in the city. The first store in Hyderabad is expected to open by December this year, and the Mumbai one early next year.
The company is also looking for land to set up stores in Delhi-NCR and Chennai. NCR is National Capital Region.
Apart from selling in India, IKEA
also plans to double its sourcing from the country to 600 million Euros by 2020. It said Karnataka could play a key role in its global supply chain.