Ikea, the furniture major has decided to invest for additional Rs 100 crore to take more warehouse space in Chakan near Pune.
The warehouse will serve the distribution needs of company’s upcoming stores in Hyderabad, Navi Mumbai, Gurgaon and Bangalore.
The company is also planning to simplify the foray by establishment of 3.3 lakh sqft warehouse will also double up as a distribution centre for its planned online foray.
Ikea India’s distribution manager said, “The warehouse will employ 100 more people by the end of 2018 in addition to 100 who are working at its existing facility, which is spread across 2.7 lakh sqft.”
Bimal Patel, distribution operations manager, Ikea India, said, “We don’t want to differentiate between offline and online, but give all options to the customers.”
He said, the new distribution centre will be built in accordance with global standards. The company's deputy country head in India, Patrik Antoni, had earlier said finding wood in India is a challenge as plantation in the country is very less.
Ikea has 52 suppliers from India to supply to its global market. While, Patel did not outline specifics but he hinted that it will only go up as the Swedish retailer expands its footprint in India.