Swedish home furnishings giant IKEA has opened its first store in India, kicking off its retail journey five years after it received approval to invest in the country’s single-brand retail sector.
The company, which has employed 950 people directly and another 1,500 indirectly at its store in Hyderabad, plans to hire 15,000 in the coming years as it expands operations in India. IKEA Group CEO Jesper Brodin said the opening of the first 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 here is the first of 25 such outlets planned to be set up in India by 2025. In 2013, IKEA received nod from the government to invest Rs 10,500 crore in single-brand retail. IKEA had originally planned to open its first store in India by 2017, but it was delayed.
The opening of its first store here was scheduled for July 19 this year but the company again pushed it back by almost 20 days to August 9, citing quality commitments. Out of the total outlay of Rs 10,500 crore, the company has so far invested Rs 4,500 crore in its different projects in India.