Ingka Centres, part of the Ingka group, which also owns most Ikea stores worldwide, on Friday said that it was setting up its first shopping centre in India for an investment of Rs 5,500 crore. This will mark a significant step-up for the group's big-box retail plans in the country.
The group already has two flagship Ikea stores in India, one in Hyderabad, the other in Navi Mumbai, measuring over 400,000 sq ft each.
The proposed mall, to be launched in Noida, Uttar Pradesh, will add to Ingka Centres' growing list of properties across the world. The company has 45 shopping centres across Europe, Russia and China. It plans to enter the United States this year and is looking to foray deeper into existing markets of operation.
The India shopping centre is expected to take around two to three years to build, industry experts said, given Ingka group's focus on quality. Land for the project, a 48,000-square-metre plot, has been acquired in Noida, the company said on Friday.
The group also said that it was unveiling its 'Meeting Places' concept, providing a sustainable mixed-use destination that would bring ‘many people’ together for multiple reasons.
"Meeting Places are always anchored around an Ikea store and are designed to meet the needs of local communities bringing value for customers, communities, and partners," the company said.
Peter Betzel, chief executive officer and chief sustainability officer, Ikea India, said that Delhi-NCR was an important market for the retailer.
"This next step in our expansion is in line with Ikea's ambition to meet 100 million people in India in the coming years," he said.
Ikea is also expected to open two smaller city-centre stores in Mumbai, another priority market for the retailer. The company has already launched online stores in Mumbai, Pune and Hyderabad. It is also eyeing a store in Bengaluru, another priority market, in the future.