Swedish multinational and home furnishing major Ikea has announced it has purchased its first land in the country in Hyderabad where its first store is expected to be set up by the end of this year or early next year, according to media reports. The land acquisition takes the company closer to its plan of setting up 25 stores in India at an investment of Rs 10,500 crore over the next decade. The company is also evaluating suitable sites in Bangalore, Mumbai, and Delhi NCR (National Capital Region) to open 25 stores in the long term. “This step is yet another affirmation of IKEA’s expansion plans in India. The company is in parallel evaluating suitable sites in the cities of Bengaluru, Mumbai, and Delhi NCR (National Capital Region) to open 25 stores in the long-term,” Ikea said in a statement. In May 2013 the government had cleared Ikea’s proposal to invest Rs 10,500 crore in India to open local stores. Earlier this year Telengana government announced that Ikea India would set up a business centre in Hyderabad with investment of Rs 500 crore. The company has agreed to purchase 50,000 square metres of land here at the cost of Rs 19.21 crore per acre, a release from the chief minister’s office said. Ikea has been sourcing from India for the last 27 years for its stores around the world. At present, IKEA Group sources about 315 million euros worth of products in India.
