After Hyderabad, IKEA heads to Noida with an investment of INR 500 Cr

Major ready-to-assemble furniture company IKEA has reportedly hit the headlines for signing a Memorandum of Understanding (MoU) with the Uttar Pradesh Government aimed at opening its store in the Indian state. As per trusted sources, the deal is worth INR 5,000 crores, which will have IKEA set up an outlet in Noida. The proposed store would provide employment to about 8000 workers both directly and indirectly.

Yogi Adityanath, Chief Minister of Uttar Pradesh stated that continuous efforts by the government have resulted in a profitable business environment within the state. He further mentioned that industrial institutions aiming for big investments are setting up their establishments, since the policies of the state government endorse that any individual or institution can easily invest in the state. Moreover, the state government will offer all possible assistance to the interested investors and industrial institutions, Adityanath added.

The company is reportedly looking to develop both retail and commercial parks that would comprise offices, shopping centers, and integrated commercial ventures in the state that would be owned by IKEA or by autonomous developers, stated IKEA. Peter Betzel, CEO of IKEA was quoted saying that they are seeking to establish a mix of large and small city center like stores but as part of the immediate plan the company would set up an IKEA store of a large format in Noida, which it is currently land scouting for.

Betzel further elaborated that the store is anticipated to receive an investment worth INR 1000 crore, which is set to create 1000 direct jobs and another 1000 indirect jobs throughout the value chain.

Reportedly, in 2015, a similar MoU aimed at opening three stores in Lucknow, Agra, and Noida, was inked by the company with the Akhilesh Yadav-led government but unfortunately it failed to move forward.  At that time, IKEA had also signed MoUs with Telangana, Karnataka, and Maharashtra state governments, cite sources.   

For the record, earlier in 2018, IKEA launched its first Indian store in Hyderabad. The Swedish company reportedly aims to have its presence throughout 49 Indian cities by 2030, reported sources.