This is an interesting move by IKEA and certainly both good for IKEA and India at the same time. IKEA will tap a huge virgin market with a growing Indian Middle Class.
NEW DELHI—Swedish housewares giant IKEA Group asked India for permission to invest €1.5 billion ($1.9 billion) in the country to set up 25 retail stores in coming years, a major commitment that provides some relief for New Delhi policy makers who have been trying to boost sagging foreign-investor sentiment.
It could take several years for IKEA to set up its first store, retail-industry experts say. The company will have competition when it arrives, as India already has at least two big-box homewares retail stores. One chain, Lifestyle’s Home Centre, which is controlled by Dubai’s Landmark Group, has 12 home-furnishing superstores across India that sell most of the same items as IKEA, including sofas, bedroom sets, and kitchen and bathroom items.
- * Ikea Applies for Big Indian Investment (chindia-alert.org)
- IKEA to invest $1.2B in India to open 25 stores (goerie.com)
- IKEA to invest $1.2B in India to open 25 store (goerie.com)
- Canada – IKEA Now Hiring in Winnipeg (jobmarketmonitor.com)
- Ikea Applies to Invest Almost $2 Billion in India (online.wsj.com)