FCC

Ikea Explores Land in South Delhi, Dwarka for Expansion

2023-08-31

Retail giant Ikea's expansion plans have led it to scout for around 25 acres of land in prime locations such as South Delhi and Dwarka in the national capital. The retail company, represented by Ingka Centres, a part of the Ingka Group which includes IKEA Retail and Ingka Investments, is exploring opportunities to extend its footprint in these sought-after areas.

Although details about land pricing offered by the Delhi Development Authority (DDA) have not been disclosed, real estate experts suggest that licensed or sanctioned plots in regions like South Delhi and Dwarka could be priced between Rs 500 million to Rs 750 million per acre. Ingka Centres had previously engaged with DDA for a sizable land parcel, but discussions did not progress favourably due to pricing concerns. However, recent reports indicate that the retailer has resumed negotiations and approached DDA once more.

IKEA has confirmed its intention to expand its presence across various markets in India, including Delhi NCR, aiming to bring its home furnishings solutions closer to customers. The group has already established multiple stores across India and plans to further its reach by opening outlets in Chennai and Pune.

As IKEA explores new avenues for expansion, it is also fostering local partnerships by sourcing 30 per cent of its products from within India. Additionally, the company is considering India as a potential export hub for wooden furniture, thereby diversifying its sourcing strategies.