Retail giant Ikea scouting for 25 acres of land in South Delhi, Dwarka areas
Ingka Centres, a subsidiary of the Ingka Group, which encompasses IKEA Retail and Ingka Investments, is actively searching for land in the national capital, with a preference for locations such as South Delhi and Dwarka, according to sources familiar with the matter as reported by Moneycontrol.
The sources, while not providing specific information about the land pricing proposed by the Delhi Development Authority (DDA), did indicate that the land pricing details were undisclosed. Real estate experts estimate that the cost of a licensed or sanctioned plot in regions like South Delhi and Dwarka could range from Rs 50 crore to Rs 75 crore per acre.
It appears that Ingka Centres has set its sights on acquiring suitable land parcels of around 25 acres in these particular areas. This strategic move aligns with the company’s ongoing expansion and investment efforts within the Indian market.
As Ingka Centres, a part of the larger Ingka Group, explores potential locations for development, including high-demand areas like South Delhi and Dwarka, the company is likely considering factors such as accessibility, infrastructure, local demographics, and market potential to ensure that the chosen sites align with its retail and development objectives.
As the situation unfolds, Ingka Centres’ interest in securing land in prominent locations within Delhi showcases the company’s commitment to expanding its presence and offerings in the Indian market, potentially bringing IKEA’s unique retail experience and products to a wider audience.
Representatives from Ingka Centres had initially engaged with the Delhi Development Authority (DDA) in the pursuit of a substantial land parcel for establishing their store. However, it seems that the initial discussions did not yield favorable outcomes due to differing pricing expectations.
Despite the initial setback, Ingka Centres has not been dissuaded. The company has revisited its interest in acquiring land from the DDA for its store and has reinitiated talks with the authority. In a recent development, an IKEA delegation held discussions with top officials at the DDA regarding the possibility of acquiring land for their store.
The specific details of the renewed negotiations, including the revised pricing expectations and potential land locations, have not been disclosed. However, the determination of Ingka Centres to continue pursuing opportunities for establishing its store in Delhi indicates the company’s commitment to its expansion plans within the Indian market.
This persistence in engaging with the DDA underscores the importance of finding suitable locations for the company’s retail operations while also aligning with its financial considerations. As Ingka Centres and the DDA continue their discussions, the outcome could potentially pave the way for Ingka Centres to establish its presence in a prominent location within Delhi, offering its unique retail experience to consumers in the region.
According to the source, the Delhi Development Authority (DDA) has requested the IKEA Group to submit a comprehensive and revised proposal in writing before proceeding further. However, as of now, the company is yet to provide the requested proposal. The DDA is expected to evaluate and make decisions based on the proposal submitted by IKEA.
IKEA, when approached for comment, issued a statement acknowledging their intent to enhance their omni-channel presence in various markets across India, including the Delhi National Capital Region (NCR). The company aims to bring its wide range of home furnishings solutions closer to a broader audience through strategic expansion efforts.
The fact that IKEA is considering expanding its presence in the Indian market through both physical stores and an omni-channel approach demonstrates the company’s commitment to providing convenient access to its products and shopping experience. As discussions between IKEA and the DDA continue, the outcome could have significant implications for IKEA’s footprint in the Delhi NCR area and its ability to serve customers in that region.
The IKEA Group currently operates an impressive global network of 482 IKEA stores located in 31 countries. In line with its expansion strategy for the Indian market, IKEA has established small city stores in key locations during the initial phase of its India plan. These stores are operational in cities such as Mumbai, Hyderabad, Bengaluru, and Navi Mumbai. Furthermore, IKEA has expanded its reach by introducing delivery services for customer orders in cities like Pune, Surat, and Vadodara.
To further extend its presence, IKEA is set to launch a mixed-use retail center in Gurugram, which is expected to become operational in late 2025. This venture will offer a combination of shopping, dining, entertainment, and other facilities, enhancing the overall consumer experience.
Additionally, Ingka Centres, a subsidiary of the Ingka Group, is diversifying its footprint by venturing into Noida. This involves the establishment of a significant shopping center with an investment of Rs 5500 crore. The Noida center is anticipated to offer a comprehensive retail experience, catering to various needs and preferences of consumers.
For its Noida project, IKEA acquired a commercial plot spanning 48,000 square meters (approximately 11.86 acres) in Sector 51. This purchase from the Noida Authority took place on February 19, 2021, with a transaction value of Rs 850 crore. This strategic move showcases IKEA’s commitment to expanding its offerings and creating comprehensive retail destinations that cater to the evolving demands of Indian consumers.
By combining its omni-channel strategy, small city stores, mixed-use retail centers, and ventures into new locations like Noida, IKEA is strategically positioning itself to become a significant player in the Indian retail landscape while providing diverse and convenient shopping experiences to its customers.
The Ingka Group made its initial entry into the Indian market in 2018 with the launch of its first IKEA store located in Hyderabad. Since then, the company has expanded its footprint in India by inaugurating two additional flagship stores in Mumbai and Bengaluru. Complementing these large-format stores, IKEA has introduced two city store formats in Mumbai to cater to the diverse needs of urban customers.
With a strategic focus on growth, IKEA is actively exploring opportunities to further expand its retail presence. As part of this expansion plan, the company is considering the opening of stores in Chennai and Pune. This move aligns with the increasing demand for IKEA’s products across various cities in India, as the brand continues to gain popularity and recognition among Indian consumers.
In terms of its product offerings, IKEA has been proactively sourcing locally, with 30 percent of the products available in its Indian stores being procured from local suppliers. Furthermore, the company is contemplating the potential for promoting exports from India. This would not only strengthen IKEA’s presence in the global market but also contribute to India’s role as a key sourcing destination for the company.
A notable strategy in IKEA’s agenda is to develop India as an export hub for wooden furniture. By diversifying its sourcing activities across various regions in India, IKEA aims to leverage the country’s expertise and resources in the furniture industry. This strategic move aligns with IKEA’s commitment to creating a sustainable supply chain while contributing to India’s position as a global player in the furniture and retail sectors.
As IKEA continues to expand its physical presence across different cities, diversify its sourcing activities, and engage with local communities, it is actively contributing to India’s retail landscape and promoting economic growth through its investments and initiatives.
