Home / Knowledge / News / Textiles / IKEA eyes production unit in India
IKEA eyes production unit in India
10
Jun '16
With an eye to tap the great Indian middle class market, Swedish home furnishing major Ikea is considering to set up a production unit in the country amidst reports of setting retail stores in India next year.

According to an agency report from Almhult in Sweden, Ikea which has already purchased land in Hyderabad and Mumbai to start retail operations, is also looking to double sourcing of products for its global operations from India by 2020.

"It is important for us to set up our production (unit) in India," Ikea Group President and CEO Peter Agnefjall said.

Having production facilities in India would not only support the economic growth of the host country but would also enable Ikea to sell its products without compromising on its margins, Agnefjall said.

“What we do is that we sell products, which are inexpensive. You cannot distribute these inexpensive products long distances because if you do that then you would ruin the margin of the product.

"So it's important for us to go in for the local production… Then only, I think we can reach the big middle class and not the affluent few but the many people in India. There is enormous growth of the people of the middle class year by year and by 2025 it would look different from today."

Agnefjall disclosed that Ikea planned to invest more than 1.5 billion euros in the near future in stores and distribution. “It's very difficult to be spot on but I think it would be enough," he said.

Ikea is slated to open its first store in India at Hyderabad in next year. It has also bought land in Mumbai as part of its expansion in India and is looking for more sites in Delhi-NCR, and Bengaluru.

Agnefjall said that once the company covers the four territories in Bangalore, Delhi, Mumbai and Hyderabad, it look beyond to expand.

The Ikea boss gave no time frame for opening stores in Delhi- NCR region saying that it depended on how quickly IKEA could manage to identify and acquire sites, obtain retailing permits and then build its stores there.

For a big city like Delhi, IKEA would probably need three to five stores to cover it in a good way, the CEO said adding that the company would ideally like to locate its stores where there is good connection to public transportation too.

Describing these plans acting as starting points, Agnefjall said: "It would keep us occupied for a number of years to go but eventually we would like to be (there) for the many people living in India beyond those territories too." (SH)

Fibre2Fashion News Desk – India


Must ReadView All

India mulls new schemes for jobs, textile clusters

Apparel/Garments | On 25th Apr 2018

India mulls new schemes for jobs, textile clusters

India is mulling over alternative schemes for jobs and manufacturing...

Kraig gets approval for Vietnamese subsidiary firm

Textiles | On 25th Apr 2018

Kraig gets approval for Vietnamese subsidiary firm

Kraig Biocraft Laboratories, Inc., the leading developer of spider...

Courtesy: ITMA Asia

Textiles | On 25th Apr 2018

ITMA Asia + CITME 2018 attract global textile companies

The sixth edition of ITMA ASIA + CITME 2018 has received strong...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search