Swedish furniture giant IKEA will soon begin work at its Noida outlet. The proposed outlet is touted to be its biggest store in India. IKEA has committed to complete the project by 2025. IKEA will set up an integrated commercial project in Noida giving direct employment to 1,000 and indirect jobs to another 1,000.
IKEA had initially signed an MoU with the previous government in 2015 to set up three stores in Lucknow, Agra and Noida with an investment of Rs 500-crore in each city. However, its plans evolved over the years and a fresh MoU was signed in 2018. As per the fresh MoU, IKEA will make Rs 5,000 crore investment in Noida and other cities in the state.
The UP government has already allotted 47,833-sq.m land to the company, but work did not take off due to pending payments.
A typical IKEA store has an average size of 4,00,000-sq.ft. Since it is difficult to find such a large space within a city, the company is looking to change its model and develop smaller stores, either standalone or even within malls.
IKEA India opened its first retail store at Hyderabad in August 2018. IKEA had received government approval in 2013 for its Rs 10,500-crore proposal to open retail stores under 100 per cent FDI. The furniture retailer has signed MoUs with Karnataka, Telangana, Maharashtra, Uttar Pradesh and Haryana to open retail stores. The company is planning to open 40 stores by 2030 in various Indian cities. Its second store is scheduled to be opened in Mumbai soon.