Peter Betzel who till recently was heading the furniture retailers business in Germany will now take charge of operations in India where it is going to set up its first outlet soon. Betzel will replace Juvencio Maeztu, who is now moving to a global role as its CFO and deputy CEO. Maeztu is the one who has been credited with for setting up IKEA’s India business.
Betzel who started off as a store manager has spent the last 25 years across IKEA’s key markets. The new CEO of Indian operations will now oversee the opening of the retailer’s first store in the city of Hyderabad, Telangana in the spring of 2018. India’s Rs 65,000 furniture market is dominated by the unorganised sector. However, recent steps taken by the government, like demonetisation and introduction of GST, may encourage more and more players from organised segment to enter the furniture market.
IKEA’s first store in India will open soon in Hyderabad which will be followed by another store in Navi Mumbai. And the third store will be opened in in Bengaluru which will take place only by mid-2019. Eventually, IKEA plans to set up three stores in Bengaluru. IKEA has also bought 10 acres of land in Gurugram by paying huge sum of Rs 842 crore to set up its store.
IKEA which got FDI approval to set up a retail chain in 2013 has plans to open around 25 stores in India by the end of the year 2025 with an estimated revenue of Rs 10,500 crore.
Founded in Sweden in 1943, IKEA is a multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity. At present, IKEA owns and operates 400 stores in 49 countries.