IKEA to build 400k-sq ft store in Navi Mumbai

Swedish furniture giant to employ 500 people in the store, eyes 5 million visitors per year

Swedish furniture giant IKEA said on Friday that it would build a 400,000-sq-ft store in Navi Mumbai on the 23-acre land it bought from Tata group firm Rallis in March 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 five million visitors a year. It, however, did not say when it would open its store here.

“The company in parallel is evaluating suitable sites in the cities of Bengaluru, Mumbai and Delhi national capital region, and plans to open 25 stores in India by 2025,” IKEA stated.

The plot in Navi Mumbai is the second land purchase done by IKEA in the country after it bought an 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 was in talks with Oberoi Realty to buy 350,000 sq ft of space in the latter’s upcoming project in Borivali here for Rs 900 crore. None of the companies confirmed this, though.

Juvencio Maeztu, CEO of IKEA India, said: “Along with setting up retail stores, we will expand our supplier landscape and grow local sourcing as much as possible.”

IKEA has been sourcing from India for the past 30 years and it plans to double its sourcing volumes by 2020. Through it 50 suppliers, IKEA employs 45,000 people directly and about 400,000 in the extended supply chain. It recently organised 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 around 40 stores run by franchisees.