IKEA TO SET UP STORE IN BAN­GA­LORE

Financial Chronicle - - FRONT PAGE - FC BUREAU

The Swedish home fur­nish­ing ma­jor, IK-EA, held a ground-break­ing cer­e­mony of its third In­dia store in Ban­ga­lore on Thurs­day.

The Swedish home fur­nish­ing ma­jor, IKEA, held a ground-break­ing cer­e­mony of its third In­dia store in Ban­ga­lore on Thurs­day. The 500,000 sqft store that will come up in 2020 near Na­gasan­dra on Tumkur Road will be lo­gis­ti­cally con­nected to the Metro sta­tion.

Pe­ter Bet­zel, CEO, IKEA In­dia said Kar­nataka was a pri­or­ity mar­ket for the com­pany and it would in­vest Rs 2,000 crore here: Rs 1,000 crore will go into the con­struc­tion of the store while rest will be used in set­ting up multi-chan­nel for­mats in­clud­ing meet­ing places and ex­pe­ri­en­tial stores. The store will di­rectly em­ploy around 1000 peo­ple while an­other 1500 will be em­ployed in­di­rectly.

“Ben­ga­lore is a spe­cial city for us as we have ac­tive par­tic­i­pa­tion from our to­tal value chain – IKEA Foun­da­tion, IKEA sup­pli­ers, IKEA so­cial en­trepreneurs and now IKEA re­tail. This city is truly cos­mopoli­tan with many peo­ple mov­ing in to find new op­por­tu­ni­ties,” he said.

With the IKEA store, we will con­trib­ute to a bet­ter ev­ery­day life for all Ben­ga­lore­ans with well-de­signed, func­tional home-fur­nish­ing so­lu­tion. We will con­trib­ute pos­i­tively to the state’s de­vel­op­ment by cre­at­ing em­ploy­ment op­por­tu­ni­ties, in­vest­ing in skill/com­pe­tence de­vel­op­ment, grow­ing lo­cal sourc­ing to meet In­dia and global de­mands and bring­ing IKEA’s global best prac­tices to grow In­dia’s re­tail and man­u­fac­tur­ing sec­tor,’’ said Bet­zel.

The store that will stock over 7500 prod­ucts is ex­pected to at­tract over seven mil­lion visi­tors a year. It will have 2000 park­ing slots and a 1000-seater restau­rant serv­ing Swedish and In­dian cui­sine.

It will also have a su­per­vised chil­dren’s play area called “Sma­land”. Speak­ing on the oc­ca­sion, Deputy chief min­is­ter of Kar­nataka, G Paramesh­wara said, “IKEA's en­try re­flects Kar­nataka's pro­gres­sive poli­cies for ease of do­ing busi­nesses.

We see IKEA as a strong part­ner in in­creas­ing lo­cal man­u­fac­tur­ing in the state and bring best prac­tices in re­tail and sup­ply chain. We also see IKEA as a great con­trib­u­tor in the state’s sus­tain­abil­ity ef­forts.

IKEA will create many jobs and its com­mit­ment to em­ploy 50 per cent women will en­able many more women in the state to join the work­force.

We will ex­tend full sup­port to fa­cil­i­tate ease of do­ing busi­ness here and to be able to open the store very quickly to IKEA.” In­dia has been a sourc­ing part­ner for IKEA in the last 35 years.

It cur­rently has 55 sup­pli­ers in the coun­try who di­rectly em­ploy 45,000 peo­ple and some 400,000 peo­ple are in­di­rect ben­e­fi­cia­ries of this sup­ply chain. IKEA Foun­da­tion, its phil­an­thropic arm, has in­vested $175 mil­lion in In­dia in the last 18 years and has al­ready touched the lives of some 120 mil­lion needy chil­dren. It has a man­date to im­prove the lives of 1 mil­lion women by 2019.

IKEA re­ported an over­whelm­ing cus­tomer re­sponse in its first story in Hy­der­abad. The store re­ceived over a mil­lion visi­tors in six weeks into its launch.

The sec­ond IKEA store will come up in Mum­bai by end of next year. The Swedish com­pany has a man­date to es­tab­lish stores in 49 cities across the coun­try by 2030.

IKEA has 423 stores in 50 coun­tries with a sales vol­ume of 38.3 bil­lion eu­ros. Some 936 mil­lion cus­tomers vis­ited IKEA stores in FY17 and more than 2.3 bil­lion peo­ple vis­ited IKEA on­line. It cur­rently has direct peo­ple strength of 194,000.

IKEA In­dia CEO Pe­ter Bet­zel with Kar­nataka deputy CM G Paramesh­wara, in­dus­tries min­is­ter KJ Ge­orge and oth­ers at a cer­e­mony in Ban­ga­lore on Thurs­day

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