Ikea to create first shopping mall in India for Rs 5,500 cr
Ingka Centers, part of the Ingka group, which also owns most of the Ikea stores in the world, announced on Friday that it was setting up its first shopping center in India for an investment of Rs 5,500 crore. This will mark a milestone for the group’s big box retail plans in the country.
The group already has two flagship Ikea stores in India, one in Hyderabad, the other in Navi Mumbai, measuring over 400,000 square feet each.
The proposed mall, to be launched in Noida, Uttar Pradesh, will add to Ingka Centers’ growing list of properties around the world. The company has 45 shopping centers in Europe, Russia and China. It plans to enter the United States this year and is looking to deepen its existing operating markets.
Construction of the Indian mall is expected to take around two to three years, industry experts have said, given the Ingka Group’s focus on quality. The land for the project, 48,000 square meters of land, has been acquired in Noida, the company said on Friday.
The group also said it was unveiling its concept of “hangouts,” offering a sustainable mixed-use destination that would bring “many people together” for multiple reasons.
“Meeting venues are always anchored around an Ikea store and are designed to meet the needs of local communities, delivering value to customers, communities and partners,” the company said.
Peter Betzel, CEO and sustainability director of Ikea India, said Delhi-NCR is an important market for the retailer.
“This next step in our expansion is in line with Ikea’s ambition to meet 100 million people in India in the years to come,” he said.
Ikea is also expected to open two smaller downtown stores in Mumbai, another priority market for the retailer. The company has already launched online stores in Mumbai, Pune and Hyderabad. He is also considering a store in Bangalore, another priority market, in the future.