Ikea plots west India foray, buys Mumbai land for Rs. 214cr.

Swedish furniture retailing giant Ikea is buying the lease rights of a 26acre plot on the outskirts of Mumbai from Tata Group company Rallis for about Rs 214 crore. It could be the venue for the label's first outlet in western India.

The transaction, subject to regulatory approvals, fuels the world's largest furniture maker's growth plans in Asia's third largest economy. The site at the MIDC ndustrial Estate at Turbhe on Thane-Belapur road in Navi Mumbai could also house a back-end unit for Ikea, which is known for its huge warehouse-like stores.

The company, among the first to move into India after the country allowed 100% foreign direct investments in single brand retailing, intends to invest Rs 10,500 crore to open 25 stores in one of the world's fastest growing regions. Last year, the chain had bought a 13-acre plot in Hyderabad for its maiden outlet in the country. The store, spread across 4 lakh square feet, will open its doors next year.

TOI