IKEA India recently inked a MoU (memorandum of understanding) with the state of Haryana as a major step forward towards establishing retail stores in the state. IKEA will invest an estimated Rs. 2000 crores for its retail expansion in Haryana, will employ about 1000 coworkers directly and engage around 3000 more for providing services such as furniture assembly, delivery services among others.
The MoU stands for mutual commitment from both parties and intends to provide clarity on working methods and ensure a legally and ethically compliant, corruption free business environment. In 2015, IKEA had signed MoUs with Karnataka, Telengana, Uttar Pradesh and Maharashtra to set up stores.
IKEA has been present in India for 28 years, sourcing for its stores around the world. In India, IKEA currently has around 50 suppliers with about 45,000 direct employees and about 400,000 people in the extended supply chain. The IKEA Group is the first major single brand retailer to get FDI approval and plans to open several stores in Delhi/NCR, Hyderabad, Karnataka and Maharashtra. Recently IKEA India purchased its first piece of land in Hyderabad and is in parallel looking for land sites in the other prioritized cities.
IKEA India CEO Juvencio Maeztu said, “Haryana is a prioritized state for IKEA due to its open investment climate. The state is investing heavily in technology, infrastructure and skill development. IKEA will set up retail stores to bring high quality, functional home furnishings with affordability and design for the many people. We will expand our supplier base and develop logistical infrastructure for our business. In our journey, till now we are satisfied with support from the government authorities and we look forward to a strong partnership with Haryana.”
Principle Secretary, Industries, Devender Singh said on the occasion, “We welcome IKEA to Haryana and strongly believe both IKEA India and the State of Haryana will benefit from this association. IKEA will positively contribute to creating more employment, manufacturing sector transferring know- how and best practices, skill development in retail, and in the overall growth of the home furnishings retail sector and the economy.”