Swedish furniture and home furnishings vendor Ikea has invested an additional ₹850 crore in its Indian unit as part of its strategy to deepen its presence in this growing market.
Majority of the investment has been made by Ingka Holding Overseas BV and the remainder by Ingka Pro Holding BV, data from trade intelligence platform, Tofler showed on Thursday. Both companies are part of Ingka Group, the owner
and operator of Ikea Retail.
The fresh infusion is part of the group’s ₹10,500 crore investment plan for India.
“India is identified as affordable and sustainable products," said a spokesperson for Ikea India.
In India, Ikea runs two large stores--one each in Navi Mumbai and Hyderabad. It also has an online presence a future growth market for Ingka group. The fund infusion established is part of the ₹10,500 crores announced initially. This new infusion will support our omni-channel growth plans in India to enable us to reach many more people in India for their life at home needs with our across Hyderabad, Mumbai, Bengaluru, Surat, Ahmedabad and Vadodara.
The vendor has been stepping up operations in the country. Last December, Ikea opened its first small format city store at Worli, Mumbai. By 2025, it plans to have four such stores in Mumbai, in adding to its large-format store in Navi Mumbai that opened earlier.