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 seeks more cooperation with Vietnam in 4 key sectors

Textiles | On 22nd Nov 2018

India seeks more cooperation with Vietnam in 4 key sectors

Indian President Ram Nath Kovind recently called for more cooperation ...

Courtesy: Kai Pilger from Pexels

Apparel/Garments | On 22nd Nov 2018

Bahamas urges garment firms to avail import duty waiver

The Bahamas ministry of finance recently urged retail shoe and...

Japan's clothing imports up 8.4% in H1 2018-19

Apparel/Garments | On 22nd Nov 2018

Japan's clothing imports up 8.4% in H1 2018-19

Japan’s imports of clothing and accessories increased by 8.4 per cent ...

Interviews View All

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

C Dhandayuthapani,

C Dhandayuthapani

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

Deepprakash Agrawal,

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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


November 2018

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

news category


Related Categories:

Advanced Search