"International Trade Fair for Furniture Production Technologies, Woodworking Machinery, Tools, Fittings, Accessories, Raw Materials and Products"
IKEA India, the Swedish home furnishings retailer, celebrates the ground-breaking ceremony of its third India store in Nagasandra, Bengaluru on June 22.
Following the grand opening of its first IKEA India store in Hyderabad four months ago, this is yet another step to its long term commitment to India. The ceremony took place in the presence of the Honorable Deputy Chief Minister of Karnataka, Dr. G. Parameshwara, Peter Betzel, CEO, IKEA India, IKEA suppliers, coworkers and many other distinguished guests.
Karnataka is a priority market and IKEA India will invest 2000+ crores in long term. Close to Rs. 1000 crores will be invested for its first Bengaluru store. The store will employ 800-1000 direct coworkers and engage another 1500 indirectly in services.
The 500,000 sq. ft. store, planned to open in summer 2020 is connected to the Nagasandra Metro Station. IKEA store is expected to attract more than 7 million visitors per year. The store will offer a wide range of beautiful and affordable home furnishing solutions for the many people in Karnataka. The IKEA store will have around 2000 parking space and a 1000 seater restaurant serving Swedish and Indian delicacies. It will also house a supervised children’s play area called “Småland”. Around 7500 products will be on offer with solution to create a better and brighter everyday life at home.
Talking at the groundbreaking ceremony, Peter Betzel, CEO, IKEA India, said, “Bengaluru is a very special city for us as we have active participation from our total value chain - IKEA Foundation, IKEA suppliers, IKEA social entrepreneurs and now IKEA retail. This city is truly cosmopolitan with many people moving in to find new opportunities. With the IKEA store, we will contribute to a better everyday life for all Bengalureans with well designed, functional home-furnishing solution. We will contribute positively to the state’s development by creating employment opportunities, investing in skill/competence development, growing local sourcing to meet India and global demands and bringing IKEA’s global best practices to grow India’s retail and manufacturing sector.”
Honorable Deputy Chief Minister of Karnataka, Dr. G. Parameshwara said, “I welcome IKEA to our state. IKEA's entry reflects Karnataka's progressive policies for ease of doing businesses. Bangalore's mega city with improving infrastructure continues to attract investments. We see IKEA as a strong partner in increasing local manufacturing in the state and bring best practices in retail and supply chain. We also see IKEA as a great contributor in the state’s sustainability efforts. IKEA will create many jobs and its commitment to employ 50% women will enable many more women in the state to join the workforce. We will extend full support to facilitate ease of doing business here and to be able to open the store very quickly to IKEA.”
IKEA has a very strong diversity and inclusivity agenda with a commitment to employ 50% women co-workers at all levels. The Bengaluru store will employ 800-1000 direct co-workers and another 1500 indirectly providing services such as assembly, delivery etc. IKEA is committed to being people and planet positive and is integrated into our business. IKEA stores will have solar panels, LED lights, rain water harvesting, water treatment plants and modern waste management systems. IKEA will use EV for deliveries and even co-worker transportation in the future.
IKEA aims is to reach out to the many people with thin wallets by offering products with everyday low prices. In the Hyderabad store, there are 1000 products priced below Rs.200. Besides its big format stores, IKEA will create a multichannel experience for its customers in India. It will launch e commerce in Mumbai next year and introduce other touch points that will bring the brand closer to customers. IKEA aims to be present in 49 cities by 2030.
IKEA has been sourcing from India for close to 35 years for its global stores. In India, IKEA currently has more than 55+ suppliers with 45,000 direct employees and 400,000 people in the extended supply chain. IKEA Purchasing organisation works with 7 suppliers and are looking to sign up many more suppliers with a strategic and value fit. In India, IKEA aims to maximize local sourcing in the long term to make the products more affordable.
IKEA Foundation, its philanthropic arm has been working with the community for 18 years and currently has 7 running projects centered around livelihood and resources. IKEA Foundation is also working on DISHA, a skill development program to train 1 million women to join the workforce. The Hyderabad store has employed around 100 women from this program so far. IKEA also works with 1500 women artisans through two social entrepreneurs, one of who is based in Karnataka.
About IKEA India:
IKEA India, part of Ingka Group opened its first retail store in Hyderabad in August 2018. The Navi Mumbai store opened in December 2020. IKEA India also opened its first city-centre store in Worli in December 2021. Customers across Bengaluru, Hyderabad, Mumbai, Pune, Ahmedabad, Surat, and Vadodara can shop online through the website or IKEA App. The ambition is to enter prioritized markets in India with an omnichannel approach with beautiful, affordable, good quality and sustainable home furnishings products.
IKEA has been sourcing from India for 35+ years with close to 50 suppliers. It is working with over 45,000 direct employees and 400,000 people in the extended supply chain in India to produce for IKEA stores worldwide. IKEA also works with Indian social entrepreneurs, engaging 1500+ women artisans to produce unique limited-edition products for its global store.