In view of the burgeoning future business avenues in the Indian furniture and furnishing market, the Swedish furniture retailing giant IKEA has recently decided to set up three stores in Maharashtra at an investment worth Rs. 1,800cr and has already inked an MoU with the state government, said sources claiming that the offshore player has fixed the state as one among four states, including Telangana, Karnataka and Delhi-National Capital Region (NCR) to open new stores.

As a matter of fact, its one store needs more than eight acres (350,000 square feet) space and Rs. 600cr investment and the company is currently scouting space and locations in these states for the purpose. The proposed investment in the state is expected to boost local small and medium enterprises and the manufacturing sector, as IKEA plans to source 30 to 40% of its materials locally to contribute to the Make in India campaigns and that it is also exploring an option to make the state as its entry and exit port for both imports and exports purposes. Its priorities are to find the right locations for its stores to expand the supplier base and establish long-term relations with authorities and others, said an official spokesperson.