Ikea To Invest Rs 12,500 Crore To Establish 25 Stores In India

Ikea, the world's largest furniture retailer, is planning to invest Rs 12,500 crore to establish 25 stores in India over the next decade. The new stores will come up in Mumbai, Delhi, Hyderabad and Bangalore.

Foreign Investment Promotion Board (FIPB) has already given Ikea its go-ahead to invest Rs 10,500 crore.

"We are looking at investing around Rs 12,500 crore to set up 25 stores at a cost of Rs 500 crore each. We will be mobilising $500 million from our global partners for this venture," Ikea India chief executive Juvencio Maeztu said.

"It is difficult to specify any time-frame when we will set up the first store, still I can say we are working on it and we are in talks with different states and are looking at all major metros for land as we require a very large area of land that is near a highway," he added.

The company is likely to open its first store in Bangalore or Hyderabad. "For now, the priority is the right location and we are focusing on all major metros, the right location and the good price of land, which is important for us to start right," he said.