Ingka Centres, which is part of the Ingka Group that operates IKEA Retail, on Friday said it plans to invest about ₹5,500 crore, or more than €600 million, to set up its first shopping centre in India.
The Swedish firm has acquired a 47,833 sq. m. plot in Noida, Uttar Pradesh, for ₹850 crore for developing an IKEA-anchored retail destination.
“Ingka Centres has today taken its first step to expand into India with a major land acquisition in India,” the company said in a statement.
“The total volume of investment into the project is planned to be close to ₹5,500 crore (above €600 million). The new development is expected to create more job opportunities, support infrastructure development, and growth of the organised retail and home furnishings sector in the region.”
A tweet from the official handle of the Noida Authority CEO added that the investment would happen over the next seven years.
Ingka Centres, which has a portfolio of 46 assets in 16 markets, including Russia and China, said the move to India is part of its global vision to expand into new markets.
The “IKEA-anchored destinations deliver a powerful retail attraction and new experiences reflecting the needs of the local communities. India will play a central role in Ingka Centres’ vision to shape Meeting Places with destinations that appeal to the ‘many people’.”
Cindy Andersen, Ingka Centres MD, said: “India is an exciting and dynamic market, and today’s acquisition is a key milestone in our strategic vision to transform the business in response to the changing retail environment. Millions of people live within easy reach of Noida. We look forward to presenting our Meeting Place concept to this market, a concept built around local communities’ needs, and which goes far beyond shopping.”
The announcement follows the launch of the second IKEA India store in Mumbai in December 2020. The first IKEA store was set up in Hyderabad about two years back.
Peter Betzel, CEO and CSO, IKEA India, said, “We are happy to announce the first IKEA store in Noida together with Ingka Centres. Delhi NCR is one of our most important markets in India. This next step in our expansion is in line with IKEA’s ambition to meet 100 million people in India in the coming years.”