Sweden-based global furniture giant IKEA has announced to expand its warehousing facilities in Maharashtra (India) with an investment of Rs. 750 crores. This was reportedly announced by a senior executive of the company.
The furniture retailer, which is all set to kick off its physical operations in India soon, is also looking for more space in Maharashtra to set up its own warehouses in the coming two to three years.
Interestingly, IKEA recently announced to expand its warehousing capacity in Chakan near the Indian city of Pune, as well, from 2.7 lakh sq. ft. to 3.3 lakh sq. ft. with an investment of around Rs. 100 crores.
Earlier, the retailer announced to invest Rs. 10,500 crores to open 25 stores by 2025 in India. It is being speculated that its debut store in Hyderabad will be opened this year while Mumbai will host the second store next year. The retailer will also open stores in Bengaluru and Gurgaon.
IKEA India had also announced to increase its local sourcing from current Euro 318 million to Euro 600 million by 2020.
Notably, IKEA’s arrival in India has come at a time when the local home furnishing companies like Welspun India Limited, GHCL Limited among others are facing tough market conditions and reporting a drop in sales. The retailer’s arrival will further increase competition in the Indian home furnishing industry.