Ikea to invest Rs 5,000 crore in UP

New Delhi: Ikea is planning to invest Rs 5,000 crore in Uttar Pradesh, where the Swedish home furnishings major is planning to set up large and small format stores.

The investment would create over 8,000 direct and indirect job opportunities in the state, said Ikea in a statement.

Ikea, which is planning to set-up a large format store in Noida, has signed a memorandum of understanding (MoU) with the Uttar Pradesh government for opening of stores in the state.

"We plan to invest more than Rs 5,000 crore in the State over the coming years, which will create employment for over 8,000 jobs.

"In line with our new retail direction, we intend to set up a mix of large and smaller city center format stores complimented by e-commerce in the state over time," Ikea India CEO Peter Betzel said.

The company considers UP as an "important market" and for that Ikea is "in dialogue with the present Government to facilitate our expansion plans in the State," the statement said.

In 2013, Ikea received nod from the government to invest Rs 10,500 crore in single-brand retail.

Ikea has opened its first store in India in August this year in Hyderabad.

Ikea's second store will open in Mumbai next year, followed by Bengaluru and Delhi-NCR.