The Swedish furniture major IKEA is all set to start their operation in northern region by beginning work in UP. As the land transfer for opening a shopping mall has been done on the second last week of February in 2021, they begin working for NOIDA project. The allotment of land had been made by local authority in Sector 51 for Rs 850 crore.
Although, between the company and UP government an MOU was signed in December 2018 for investment of Rs 5,000 crore in Noida and other cities in Uttar Pradesh by 2025; later for NOIDA project the land has been allotted to the company, but work didn’t take off due to pending payments.
The IKEA operation in northern region will support the retail market in a way that it will be more organised as the sector will have new learning and infrastructure development. The furniture sector will also be supported in a way that the company has mandatory policy for 30% local procurement for their requirements.
World’s leading home furnishings retailer, the Swedish major IKEA Stores had ventured into Indian furniture retail industry by opening its first store by investing Rs 1,000 crore in land, construction and a capital goods in Hyderabad in August 2018 and later opened its second large format physical store in Navi Mumbai on December, 2020.
Besides, they have come up with numerous fulfilment centres supporting their online activity in various regions. They designs and sells ready-to-assemble furniture for homes, kitchen appliances and home decor items. They are the first who promoted the concept of DIY (Do It Yourself) in the country. They have plans to investing Rs 10500 crore in the country by 2025.