IKEA evinces interest in setting up shop in UP
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IKEA evinces interest in setting up shop in UP

Last Updated: Thursday, October 24, 2013, 12:32
 
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IKEA evinces interest in setting up shop in UP
Lucknow: Swedish furniture chain IKEA, which proposes to invest around Rs 10,500 crores in India, has expressed willingness to set up their first integrated unit for furniture manufacturing and selling in Uttar Pradesh.

Representatives of the Swedish furniture chain IKEA met Principal Secretary, Infrastructure and Industrial Development Department, Surya Pratap Singh yesterday expressing willingness to set up their first integrated unit for furniture manufacturing and selling in the state, an official spokesman said here.

During meeting it was informed that IKEA planned to establish its stores in four states and UP was high on their priority.

It was agreed that the IKEA officials would visit Noida and Greater Noida early next month to see for themselves the infrastructure and identify appropriate site, he said.

During interaction, Communication Manager India of IKEA, Patrik Antony, made a presentation through a short film on the business concept and strategy of IKEA.

It was informed that at present IKEA had 342 stores across the world with 1,54,000 co-workers and turnover of around Euros 27.5 billion.

A model IKEA store comprises of showroom, market hall and self-service warehouse along with a restaurant.

An area of around 12-17 acres of land was required with customised specifications and ease of accessibility through public transport.

Appreciating the interest shown in UP, Singh said: "Investment in industries is welcome provided that such investment must not affect local businesses negatively."

"Along with a large consumer base and growing middle- class, UP has around 40,000 hectares of land available for industries. Therefore it cannot be ignored any more by entrepreneurs, Indian or foreign," he added.

Expressing interest for land in Noida or Greater Noida, Property Manager IKEA Jeff Dolin said, "by 2020, we plan to double our turnover and that is possible only by tapping into the vast consumer base in India.

"UP is one of the priority states for us and we will be aiding in growth of whole furniture sector by providing low- cost quality products," he added.

Allaying concerns about adverse impact on local furniture business due to IKEA's proposed entry, Dolin said that in addition to need for local suppliers, the chain creates a lot of work opportunities for local manufacturers for achieving viability.

"Our expansion in UP will depend upon our experience from the first store," he said.



PTI

First Published: Thursday, October 24, 2013, 12:32


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