India’s First IKEA Store opens in Hyderabad.
Swedish Home Furnishing giant IKEA has opened their first store in India at Hyderabad. IKEA has landed over the path to start their retail journey after five years of receiving approval to invest in the country’s single-brand retail sector.
The company is kicking off by employing 950 people directly and another 1,500 indirectly at its store. Moreover, the company is planning to hire 15,000 in the upcoming years and is ready to expand operation in India.
The CEO of the IKEA Group Jesper Brodin said the opening of the store in India marks a milestone in the company’s journey here which began over three decades ago through sourcing of products.
“We have a long-term commitment to India, which is an important market for us,” he added.
The store in the Hyderabad is the first of 25 such outlets, which are planned to be set up in India by 2025. Although the company received a nod from the government in 2013 to invest Rs 10,500 crore in single-brand retail.
IKEA had initially planned to open its first store in India by 2017, but later it got delayed. Then the opening of the first store was scheduled for July 19 this year, but the company again rescheduled the date by almost 20 days to August 9, citing quality commitments.
As per the plan, out of the total outlay of Rs10,500 crore, the company has so far invested Rs 4,500 crore in its different projects in India.
The Hyderabad store alone hold an investment of 1,000 crores and it is equipped with a range of 7,500 products. The store is spread over 13 acres of land and has a built-up area of 4 lakh sq ft.
Furthermore, the company is willing to increase its investment in India as they are looking to accelerate their expansion faster in the country than it would be doing elsewhere.
Besides retail, IKEA said it will also enter e-commerce segment in India by next year, and will also explore small format stores as a part of its India expansion plans.
As per Brodin, ” We want to be accessible… we will try our best to speed up our expansion to move quicker than normally we do in IKEA”.
Replying on the company’s recruitment plans, IKEA India HR Manager Anna-Carin Mansson said the company’s aim is to make retail an attractive career choice for young people in the country.
she added, “Our aim is to recruit 15,000 people … in the coming years.”
IKEA said it has adopted a “non-negotiable” approach to hire 50 percent women at all levels in India, even “including forklift drivers and assembling co-workers.”
It also said it will offer delivery and assembly service to its customers who are not familiar with DIY (do it yourself) concept.
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