Furniture giant Ikea is accelerating its India expansion after a nationwide pandemic lockdown last year delayed the construction and opening of new stores in one of its fastest-growing markets.
“If you have a lockdown you can’t continue to construct”, Peter Betzel, Ikea’s chief executive officer for India said in an interview. “But now we are back in full speed”, added Betzel.
“The company opened its second India store on the outskirts of Mumbai in December last year, and another in the southern city of Bengaluru is now on course to be completed in 12 months”, Betzel said, adding that he was hopeful of meeting the target of rolling out shops in 30 Indian cities within seven years. Ikea, which opened the first store in Hyderabad in 2018, also has just two years left to raise the ratio of goods and materials sourced from India currently at 22% to at least 30% to meet local regulations. Betzel said that was absolutely achievable.
The Swedish furniture giant, known for its minimalistic aesthetics, is now making up for lost time as the Indian economy begins to rebound from the pandemic-induced recession and new Covid-19 infections slowdown in the world’s second-worst hit nation. Ikea’s ambitious plans for India, however, face potentially stiff competition after Asia’s richest man Mukesh Ambani.
Ikea recently announced the acquisition of land in Noida, a satellite city adjacent to New Delhi, for a $753 million multipurpose mall that should be ready in about three and a half years, he said. Development on a second store close to India’s national capital will begin this year and two smaller centres in Mumbai will open in 2021.
