IKEA signs MoU with UP, plans to invest Rs 5,000 crore.

The world’s largest furniture retailer IKEA is planning to invest Rs 5,000 crore in Uttar Pradesh. IKEA, which is planning to set-up a large format store in Noida, has signed a memorandum of understanding (MoU) with the Uttar Pradesh government for opening stores in the state.

The investment would create over 8,000 direct and indirect job opportunities in the state, said IKEA in a statement.

“We plan to invest more than Rs 5,000 crore in the State over the coming years, which will create employment for over 8,000 jobs. In line with our new retail direction, we intend to set up a mix of large and smaller city center format stores complimented by e-commerce in the state over time,” IKEA India CEO Peter Betzel said.

The company considers UP as an “important market” and for that IKEA is “in dialogue with the present Government to facilitate our expansion plans in the State,” the statement said.

IKEA has opened its first store in India in August this year in Hyderabad.

IKEA India’s second store will be opened in Navi Mumbai next year. The company is planning to hire 10,000, both direct and indirect, in Maharashtra over the next two to three years.

“Next year, we are opening the Navi Mumbai store, for which we are planning to recruit 5,000 directly and an equal number will be hired indirectly over the two to three years,” IKEA India’s people and culture manager Anna-Carin Mansson had earlier told PTI.

The Swedish furniture giant currently operates 423 Ikea stores in 50 countries with a sales volume of 38.3 billion euros.

What's your take on this post ? Comment: