IKEA’s malls business, Ingka Centres, part of the Ingka Group which also includes IKEA Retail and Ingka Investments, said on Tuesday it had bought a plot in Gurugram for the first-ever IKEA shopping centre in India.
Ingka Centres, which has 47 malls, that itself calls “meeting places”, anchored by IKEA stores across Europe, Russia and China and plans to enter North America and India, said the estimated investment for the project was around €400 million ($450 million or Rs. 3,500 crores) and that construction would start in early 2022, generating more than 2,500 jobs.
“The development, with a GBA of around 130,000 sq m, will complement the company’s plans announced for Noida earlier this year. The new meeting place will set the standard for the next generation of sustainable mixed-use destinations, acting as a lively gathering place for leisure, entertainment and retail in one of the world’s fastest-growing markets,” the company said.
Managing Director Cindy Andersen told Reuters the company expected to complete the centre, which will besides an IKEA store also house office space, in late 2025.
Ingka Centres in February announced it had bought a plot in Noida on the outskirts of Delhi and planned to invest nearly 55 billion rupees in its first shopping centre in India, but said on Tuesday the one in Gurugram would open before that.
The Noida store would hopefully open shortly after Gurugram, Andersen said in an interview.
Ingka Centres’ move to India is a part of its strategy to expand into new markets and to shape a portfolio of retail-led destinations that are fit for the future and appeal to all.
Catering to the Gurgaon and Delhi National Capital Region’s growing population and built around the needs of the local community, the meeting place is expected to welcome more than 20 million people annually who will come to shop, work, eat, exercise, learn and socialise.
The new meeting place will be developed under the new Livat brand, a Swedish word that means ‘a lively happening’ and reflects Ingka Centre’s vision to create a better everyday life by providing easy access to wellbeing, a sustainable lifestyle and belonging while meeting everyday needs. The brand name is connected to the company’s Swedish heritage and shares common roots with IKEA’s vision and values.
Peter Betzel, CEO and CSO, IKEA India said, “We are happy to announce our IKEA store in Gurugram together with Ingka Centres. India is an exciting country for IKEA, and we have a long-term commitment to reach many people with our omnichannel approach. Delhi NCR will be one of our biggest and most important markets in India and we can’t wait to meet and inspire the many people in that region with our beautiful, affordable, well designed and sustainable home furnishing products and solutions.”