Swedish furniture retailer Ikea has signed a memorandum of understanding (MoU) with the Uttar Pradesh government to expand its presence in India. The company will invest Rs 5,000 crore ($714 million) to set up stores in the state.
Ikea will open a large format Ikea store in Noida coupled with small format outlets in other parts of the state. The investment will generate employment opportunities to around 8,000 people from the state.
Commenting on the MOU, Peter Betzel, CEO at Ikea India, in a statement said, “The company plans to set up a mix of large and smaller city centre format stores, complimented by e-commerce, in the state over time. The immediate plan is to set up a large format Ikea store in Noida where we are exploring the opportunity for suitable land purchase.”
The government of Uttar Pradesh has promised to provide all possible help to Ikea for setting up its operations in the state.
Ikea had entered the Indian market with the opening of its first store in the country in Hyderabad in August.