Furniture retailer major, IKEA revealed its plans to invest Rs 12,500 crore to set up 25 stores in the country over the next decade, says a PTI report.
Each new store of the company requires an investment of around Rs 500 crore. The outlets will be in cities like Mumbai, Delhi, Hyderabad and Bangalore, according to the Swedish furniture retailer.
IKEA India has already received FIPB nod to invest Rs 10,500 crore. Besides, it will mobilise around $500 million more from its global partners for investing in these proposed stores.
"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," Juvencio Maeztu, Chief Executive, IKEA India 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 very large area of land that is near a highway," he added.
The company is likely to set up its first store in Bangalore or Hyderabad within the next couple of years and would require very large space as each store will be set up in an area measuring 3,50,000 square-feet, he said.
"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.
Typically IKEA operates large format stores located on expressways close to large cities; where it sells various household goods such as flat pack furniture, furnishings etc at relatively lower prices. IKEA also plans to tie up with local suppliers for raw material for its forthcoming stores in the country.