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Swedish furniture major IKEA is keen on setting up a unit in Uttar Pradesh as part of its expansion plans in the country.
IKEA has expressed willingness to set up its first integrated unit for furniture manufacturing and selling in the state. The company plans to establish stores in four Indian states and UP is high on its priority.
The representatives of IKEA, which proposes to invest about Rs 10,500 crore in India, today met UP principal secretary, Infrastructure & Industrial Development Department, Surya Pratap Singh here.
The delegation included Jeff Dolin, Property Manager, Patrik Antony, Communication Manager and Suhail Ahmed, Real Estate & Development Manager of IKEA India Private Limited.
IKEA officials would visit Noida and Greater Noida next month to see the infrastructure and identify appropriate site for the unit. Globally, IKEA has 342 stores and turnover of around Euro 27.5 billion.
A signature IKEA store comprises showroom, market hall and self-service warehouse along with a restaurant. It requires 12-17 acres of land with customised specifications and ease of accessibility through public transport.
Singh said investment in industries was welcome provided such investment did not affect local businesses negatively.
"Along with a large consumer base and growing middle-class, UP has 40,000 hectares of land available for industries. Hence, it cannot be ignored by entrepreneurs," he noted.
"By 2020, we plan to double turnover and it is possible only by tapping the vast consumer base in India. UP is a priority state for us," Dolin said.
Allaying concerns about impact on local furniture business, he said in addition to need for local suppliers, the company creates opportunities for local manufacturers for achieving viability.
Udyog Bandhu, UP industry interface, made a presentation on the availability of cheaper land equipped with world-class infrastructure in Noida, Greater Noida and Yamuna Expressway Industrial Development Authority.
