Ikea to invest in India with West Bengal store openings

By

Maverick Martins

Published
May 1, 2018

Swedish home furnishings company Ikea, as part of its expansion plan in India, is looking at West Bengal and sought appointment with the Chief Minister Mamata Banerjee for a possible investment of Rs 2000 crore (approx $ 301 million) in the state.
 

Ikea is planning to open 2 stores in the state with an investment of Rs 2000 (approx $301 million) that will create close to 4000 jobs in the state, according to a PTI report.
 
Ikea earlier this month had signed a memorandum of understanding (MoU) with the Gujarat government, where it has promised to invest around Rs 3000 crore in the state.

In a letter to Banerjee, a senior official of the company has promised an investment of Rs 1,000 crore (approx $150.5 million) for each store that will open in the state.
 
"West Bengal is one of the key markets in Ikea's plans in India and we would like to start working in your state for establishing Ikea's expansion plans. Each Ikea store in your state will be an investment of Rs 1,000 crore and generating employment of 800 directly and 1,200 jobs indirectly," Ikea's letter to Banerjee read.
 
"We see West Bengal as a market for 1-2 Ikea stores and touch points, which means investment of more than Rs 2000 crore," it added.
 
Ikea has set a target of 25 stores by 2025 for the Indian market with an investment of Rs 10500 crore. It will be opening its first India store in Hyderabad later this year.