Ikea parent pumps Rs850 crore in India entity
Premium- The infusion is part of the Rs10,500 crores worth of investment announced by the group into India when it first announced plans to open stores here
NEW DELHI :
Ikea India has received ₹850 crore in funding from Ingka Holding Overseas BV and Ingka Pro Holding BV as part of an initial funding promised by the furniture retailer as it eyes rapid expansion in the market.
The infusion is part of the ₹10,500 crores worth of investment announced by the group into India when it first announced plans to open stores here.
“India is identified as a future growth market for Ingka group. The fund infusion received is part of the Rs10,500 crores announced initially. This new infusion will support our omni-channel expansion plans in India to enable us to reach many more people in India for their life at home needs with our affordable and sustainable products," said a company spokesperson.
Ingka Holding Overseas BV has pumped in a bulk of the money along with Ingka Pro Holding BV, according to data shared by business intelligence platform, Tofler on Thursday. Ingka Investments—is one of the three core businesses of Ingka Group, the largest owner and operator of Ikea Retail.
In India, Ikea operates two large stores—one each in Navi Mumbai and Hyderabad. It also has an online presence across Hyderabad, Mumbai, Bengaluru, Surat, Ahmedabad and Vadodara.
It has been stepping up operations in India.
Last December, the Swedish retailer opened its first small format city store at Worli, Mumbai. By 2025 the retailer plans to have four small stores in Mumbai—this is in addition to its large-format store in Navi Mumbai that opened earlier.
Ingka Centres, part of the Ingka Group (which also includes IKEA Retail and Ingka Investments), also plans to open two separate shopping centres in India—both in the Delhi-NCR region. In November it announced plans to open one such shopping centre in Gurugram for an estimated ₹3,500 crores. Another such mall will come up in Noida at a cost of ₹5,500 crore.
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