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IKEA announces investment plan of Rs 5,500 crore at Noida facility

IKEA, the furniture giant is set to launch it’s first ever shopping centre in India after it has reportedly purchased a 48,000-square-metre plot in the city of Noida on the outskirts of Delhi.

Noida authority had previously allotted the land to Ingka Centers India Pvt. Ltd back in October 2019 and the lease deed of the same was signed on Thursday.

The furniture retailer is said to have generated revenue of Rs 850 crore through this allotment while UP government has earned Rs 54 crore as stamp duty.

It has already opened two stores in India so far with it’s first store opening back in 2018 in Hyderabad which was later followed by one in Mumbai in 2020.

Moreover, Ingka Centres comprising of 45 IKEA store-anchored malls is spread across countries like Europe, Russia and China.

The aim is to enter the United States in 2021 along with an investment plan of whooping 55 billion rupees ($759 million) in the Noida project.

The detailed planning of the project will however be announced in the near future.

Currently, Ingka Centres are striving to venture into 45 large cities across its existing markets besides the United States in coming years.

Post the lockdown relaxation and lifting of restrictions, the customers were quick to visit malls again which were earlier forced to remain shut.

Ingka Group at present owns the Ingka centres along with owning most of the IKEA stores worldwide.

The retailer which is known for its ready-to-assemble products started sourcing from India over three decades ago.

It has more than four dozen suppliers for its global sourcing and sources about 1,500 products locally, out of 7,500 products on its shelves for the Indian operations.

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