The Swedish home furnishings company, the IKEA Group, has acquired its first ever land parcel in Bangalore. The 14 acre site in Bangalore is situated at Nagasandra along the Tumkur Road and has already been acquired from the Bangalore Metro Corporation.
According to the chief executive officer at IKEA India, Juvencio Maeztu, Karnataka is a hugely strategic and vital market for the brand. Along with retail stores, the purchasing team is also looking to grow the local sourcing industry here along with engaging with local communities and artisans for several projects according to Maeztu. He also added that the brand’s first Indian sofa supplier hails from Karnataka, who provides products for the brand’s global stores.
The IKEA store in Bangalore will be approximately 4.5 lakh sq. ft. and should attract in excess of 5 million visitors annually. The store will be linked to the Nagasandra metro station for offering easier and sustainable commuting for citizens. According to Siddaramaiah, the Chief Minister of Karnataka, the Government is hopeful that IKEA will spur several developmental plans in terms of infrastructure and retail growth. The Government will offer all required assistance to the brand for future expansion plans in Karnataka according to him.
The Bangalore store will be the third one from IKEA in the country after stores in Hyderabad and Mumbai. The first IDEA India store at Hyderabad is slated to launch early in 2018. Every IKEA store will offer direct employment for around 500-700 employees with another 1, 500 people engaged in various services. According to Maeztu, the brand remains committed towards greater diversity and inclusion and also towards having 50% of women in the organization across all levels. He termed this as a non-negotiable policy at the IKEA brand.
This move confirms the long-term plans that the brand has in the Indian market. The company is currently evaluating more such suitable sites for opening stores in Bangalore, Delhi-NCR, Mumbai, Pune and Chennai. The aim is to launch 25 stores by the year 2025 in India. This development in Bangalore may also spur growth in the real estate market in the entire belt, particularly due to the presence of associated infrastructural conveniences and also due to metro connectivity. The IKEA store may boost real estate along the Tumkur Road according to industry experts and there may soon be several new projects announced along this stretch by leading developers.