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Ikea, part of the Ingka Group, is bringing its investment arm Ingka Investments to India, signaling the country’s importance as a priority market. Ingka Investments is exploring investment opportunities in various sectors such as renewables, recycling, real estate and software that align with Ikea's retail needs.
To test the waters, the investment arm has already made a minority equity investment in LivSpace, an interior design startup. This move aligns with Ingka’s plans for a second phase of expansion, following its initial commitment of Rs 10,500 crore in foreign direct investment in 2012. With over 20 billion euros in financial assets under management globally, Ingka Investments reportedly aims to bring all three of Ingka Group’s businesses—Ikea Retail, Ingka Centres and Ingka Investments—to India.
The Ingka Group currently operates 482 Ikea stores in 31 countries and has already opened stores in Hyderabad, Bengaluru and Navi Mumbai in India. They are also investing in two Ingka Centres in the NCR region and sourcing products from around 65 Indian partners. While specific investment figures have not been finalized, Ikea is considering expanding its presence with stores in Chennai and Pune, as well as smaller stores in Delhi.
The company reportedly aims to increase local sourcing and explore the potential for exporting wooden furniture from India to diversify its sourcing across countries. Ingka Investments follows a flexible investment approach, ranging from minority stakes to full acquisitions and financial market investments. They have invested 200 million euros in 25 companies to support Ikea’s retail development and made significant investments in offshore wind turbines and solar parks globally. Additionally, they have entered the real estate space with a recent purchase agreement in Paris and have acquired Made4Next, a provider of cloud-based warehouse management systems and supply chain software.
Image credit: Reuters Photo (for representational purpose)
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