After setting up a store, IKEA could also open a production unit in India
Advertisement
Advertisement
IKEA’s first store in India is all set to open in the second half of next year, and it plans to open 25 such stores in 25 cities of India by 2025. This has also led the Swedish furniture retailer to consider setting up a production unit in the country so that it can fully tap the potential of 'big middle class' consumers here. As per reports, it has already purchased land in Hyderabad and Mumbai where it would start retail operations, and aims to double sourcing of products for its global operations from India by 2020.
"It is important for us to set up our production (unit) in India," said
He also went ahead to explain the reason for a production facility in India, saying, "On one hand that would support the growth of the economy and secondly, what we do is that we sell products, which are inexpensive. You can not distribute these inexpensive products long distances because if you do that then you would ruin the margin of the product."
Agnefjall further said: "So it's important for us to go for the local production. If we have the right technology, right raw materials which is existing there then we can combine with the knowledge of IKEA and turn into a fantastic product.
Advertisement
"Then only, I think we can reach the big middle class and not the affluent few but the many people in India. There is enormous growth of the people of the middle class year by year and by 2025 it would look different from today," he added.
He was also asked about the total investments that IKEA thinks would go into the Indian market, to which he said that as per estimates, more than 1.5 billion euros would be invested in India for storage and distribution.
Image source
Advertisement
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check
- Realme C65 5G with 5,000mAh battery, 120Hz display launched starting at ₹10,499
- 8 Fun things to do in Kasol
- SC rejects pleas seeking cross-verification of votes cast using EVMs with VVPAT
- Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market