Swedish giant to invest Rs 1,800 crore in Maharashtra; Two land deals are set to be inked
Swedish furniture retailing giant IKEA, which has finalised a Rs 447-crore land deal in the Mumbai suburb of Borivali, is close to buying another plot in Navi Mumbai for around Rs 300-350 crore.
IKEA has earmarked an aggressive budget of Rs 1,800 crore for Maharashtra, where it intends to set up at least three stores. While two are being finalised in Mumbai, details about the third one are yet to be known.
The nine-acre plot in Borivali is currently owned by Oberoi Realty. Located at the junction of Western-Express Highway and Dattapada Road, the plot is a part of the 25-acre land that Tata Steel sold to Oberoi Realty in 2014, in a Rs 1,155 crore e-auction deal.
In response to an e-mail query sent to Oberoi Realty, the spokesperson said, "This is not true, and Oberoi Realty does not want to comment on rumours or speculations."
The other plot in Navi Mumbai that IKEA is hoping to purchase is at Mahape, close to Ghansoli railway station. The total land bank is around 40 acre, of which IKEA would take up 8-9 acre.
An industry source said HDFC Realty has been given the mandate to sell the land. When contacted by dna, a spokesperson for HDFC Realty declined to make any comment.
In July, the company made its first land purchase in India for its proposed showroom in Hyderabad. The deal was struck at around Rs 500 crore for a 13-acre plot. The showroom-cum-manufacturing unit will be ready by 2016-17.
The Rs 1,800-crore investment in Maharashtra forms a part of the Swedish firm's promised Rs 10,500 crore investment in the country, where it seeks to open 25 stores by 2020, for which it has already got Foreign Investment Promotion Board (FIPB) nod.
The company has already inked a Memorandum of Understanding (MoU) with the Maharashtra government, said sources claiming that the state is among the four states – others being Telangana, Karnataka and Delhi-National Capital Region (NCR) – that have immense business potential. The company has also given assurance of creating 1,000 jobs per outlet during the signing ceremony.
The said investment in the state is expected to boost SMEs and manufacturing sector, as IKEA earlier said that it has plans to source 30% to 40% of its materials locally to contribute to the 'Make in India' campaign. The company is also exploring an option to make the state as its entry and exit port for both imports and exports purposes.
dna had reported the Oberoi-IKEA land deal on July 27. The spokesperson then said that the company is evaluating suitable sites in Bengaluru, Mumbai, Delhi-NCR and Hyderabad to open 25 stores.
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