Published
Feb 14, 2018
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Ikea to invest Rs 750 crore on distribution centre in Maharashtra

Published
Feb 14, 2018

Swedish home furnishing major Ikea has earmarked an investment of Rs 750 crore (approx $117 million) for a distribution centre in Maharashtra, which will cater to the needs in the state, a top company official said.

Photo d'archives/REUTERS/Yves Herman


Ikea, which enters the Indian market later this year, has already begun investing heavily in the country and recently opened Rs 100 crore (approx $15.6 million) distribution centres in Pune and is on the lookout for land to build a bigger centre.
 
Last year, the furniture retailer had opened its first experiential centre 'IKEA Hej (Hello in Swedish) Home' in Hyderabad where it is expected to open its first store this year.

“We have opened a 2.3 lakh sq ft distribution centre in Pune, on leased land and have pumped in Rs 100 crore into this. We will expand this to 3.7 lakh sq ft by next year,” Bimal Patel, Manager of Distribution Operations at IKEA India, was quoted as saying by news agency PTI.
 
“We are also scouting for more land in Maharashtra to build our own warehousing facilities over the next two to three years, and have earmarked an outlay of Rs 750 crore for this,” he further said.
 
“We have hired about 100 people and 50 percent of them are women. We are looking to hire another 200 people once our distribution operations are running in full steam,” Patel added.
 
Ikea is expected to open three flagship stores in India this year, one in Hyderabad, one in Mumbai, and one in Bengaluru.

The company also recently acquired land to open stores in NCR Delhi.  Ikea has set a target of 25 stores by 2025 for the Indian market.

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