Ikea to open in four Indian states

Swedish furniture chain Ikea is to open its first stores in four Indian states – Haryana, Maharastra, Andhra Pradesh and Karnataka.

However, Ikea says it will take three to four years before it can open its first store in India as it is focusing first on establishing a strong back-end facility.

“Ikea has already started the process of identifying the locations and acquiring land for setting up stores,” said CEO Mikael Ohlsson.

The company also plans opening in Noida in Uttar Pradesh.

The company will invest Rs10,500 crore (US$1.9 billion) to open 25 stores across India.

Ikea is also permitted to operate cafes and restaurants in India.

It has set up an Indian subsidiary named Ikea India Ltd. To comply with the 30 per cent sourcing clause, Ikea says it will collaborate with handicraft and handloom sector as well as with the National Institute of Design.

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