Swedish furniture maker Ikea today said it will double sourcing of products and material from India to euro 600 million in up to next four years.
The firm today held groundbreaking ceremony for its first store in the country which will come up here in an area of 4 lakh sq ft with an investment outlay of Rs 700 crore.
Juvencio Maeztu, Chief Executive Officer, IKEA India said the construction may be completed by next year-end.
"The IKEA store is planned to open in Autumn of 2017, giving access to affordable, good quality home furnishing products. IKEA will hire 500 direct co-workers and another 1,500 engaged in providing services around the store. The store will be about 4,00,000 sq ft large and will host more than 5-6 million customers every year," Maeztu told reporters.
"Today we buy more than euro 300 million from India alone and we will multiply it by 2 to euro 600 million in the next three to four years," he said.
Replying to a query, he said the furniture maker may also introduce online sales in India in future.
"Today, I touch and feel in the store and tomorrow I am ordering online. We are now activating online business in many countries and in India, we will also have online business. Having said that, we will start with stores (first). We want to build the brand in the store," he explained.
Maeztu further informed that the company is actively looking to finalise sites in Bengaluru and Delhi National Capital Region.
On the recently passed GST Bill, he was of view that it will benefit the business community.
In May 2013, the government allowed the Swedish furniture major to invest Rs 10,500 crore for setting up single brand retail stores.
Ikea was one of the first few companies in India to be allowed 100 per cent FDI in retail.
Telangana Deputy Chief Minister Mohammad Mahmood Ali and state Chief Secretary Rajiv Sharma were also present on the occasion.
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