IKEA looks at next round of investment in India after fulfilling Rs 10,500-cr promise

New Delhi: Swedish furniture retailer IKEA is looking at the next round of investment in India after exhausting its commitment of Rs 10,500 crore when it entered the country 10 years back, according to the company’s India CEO Susanne Pulverer.

The company, which kicked off its retail operations in India with the opening of its first store in Hyderabad in August 2018, is currently setting up projects in Delhi-NCR that are expected to open in 2025 and will complete its committed investment for 10 years.

“This first investment that we committed is booked with the projects in NCR. So with that, we have exhausted the Rs 10,500 crore and we are looking at the next level of investment to further build IKEA presence in India, to expand volumes and increase sourcing.

So that is in the plan making and we will announce more when we are ready. The plans are being formulated, and we will make announcements when ready,” Pulverer told PTI.

In 2013, the government approved a Rs 10,500 crore FDI proposal by Ikea to set up 10 stores with allied infrastructure in 10 years. Subsequently, it had plans to open 15 more stores.

At present, 100 per cent foreign direct investment is permitted in single-brand retail trading through automatic route.

Currently, Ikea is operating stores in Hyderabad, Mumbai and Bengaluru and is investing around Rs 7,000 crore to enter the National Capital Region with two stores in Gurugram and Noida.

When asked as to whether the next tranche of investment would be on a similar scale or potentially higher, Pulverer said a decision regarding this would be taken by its parent company Ingka Group.