IKEA in expansion mode in India

IKEA, the world’s largest furniture retailer, will raise Rs 5,000 crore in India to open more stores in a country where it has a single outlet so far, the Economic Times reported recently. This will be IKEA’s biggest investment in India since its entry 2 years ago and covers nearly half of the Rs 10,500 crore FDI allowed.

The company said it will issue debentures up to Rs 5,000 crore during a period of one year and the funds will be utilised for construction of the stores and other general corporate matters. IKEA’s Rs 10,500-crore investment proposal is for the opening of stores in the country.

It has currently invested in four land sites: Hyderabad, Mumbai, Bengaluru and Gurugram. About three-fourths of India’s furniture industry is controlled by standalone stores and neighborhood carpenters.

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