Ikea, the world-renowned Swedish furniture giant, has acquired its first plot of land in India, located in Hyderabad, to establish a retail store. This significant milestone marks the company's initial step into the Indian retail market.

The 13-acre plot is strategically situated near HITEC City, Hyderabad's bustling information technology hub, and boasts excellent connectivity with public transport, including proximity to an upcoming metro line. While financial details of the acquisition have not been disclosed, the company emphasized the importance of this location for its operations in India.

Ikea's expansion plans are ambitious, with the company currently evaluating potential sites in Bengaluru, Mumbai, and the National Capital Region (NCR) around Delhi. The goal is to open 25 stores across India, reflecting Ikea's commitment to the Indian market.

"India presents a promising market for Ikea, offering opportunities for retail expansion, sourcing, and corporate social responsibility (CSR) initiatives through the Ikea Foundation. We aim to integrate these efforts in Hyderabad, where we have purchased our first plot for an Ikea store," said Juvencio Maeztu, CEO of Ikea India, in an official statement.

In line with its global practices, Ikea announced that 50% of the managerial and workforce positions for the Hyderabad store would be filled by women, underscoring its commitment to gender equality.

The land purchase follows an agreement with the Telangana government in October. Hyderabad, the joint capital of Telangana and Andhra Pradesh, will be fully integrated into Telangana within nine years, following the state's formation in 2014.

Ikea's Indian subsidiary, Ikea India Pvt. Ltd, expressed its interest in the plot to the Telangana State Industrial Infrastructure Corporation (TSIIC) on March 9. The chosen site in Raidurg, close to HITEC City and Gachibowli, is a prime location, surrounded by numerous technology firms.

This development comes nearly two years after Ikea received approval from India's Foreign Investment Promotion Board to invest in the country. The approval represents one of the largest single investments by a foreign single-brand retailer in India.

The company's Indian expansion includes significant commitments, such as investing ₹10,500 crore. A typical Ikea store requires 7-8 acres and takes approximately 12-18 months to construct, with each store costing around ₹500 crore, according to Maeztu's remarks at a retail summit in September.

In addition to the Hyderabad project, Ikea has signed agreements with the Maharashtra and Karnataka governments to establish stores in those states, further solidifying its presence in India.

"We take great pride in Ikea's decision to begin its expansion in Hyderabad," stated K. Chandrashekar Rao, Chief Minister of Telangana. He assured Ikea of the state's full support for future expansion plans.

Ikea has been sourcing materials from India for over 28 years and plans to double its procurement volumes by 2020. Currently, approximately 45,000 people are employed directly by 50 Ikea suppliers in India, with about 400,000 individuals involved in the extended supply chain.