Furniture retailer IKEA has plans to open four stores in Bengaluru with an investment of Rs 2,000 crore, announced Juvencio Maez tu, Chief Executive officer of Ikea India. “Karnataka is a very important market for IKEA. We will develop retail stores and double our sourcing by 2020. Around 4 stores are planned for Bangalore,“ he said. Retail giant Walmart also announced that it will be opening 10 cash and carry stores in Karnataka.
Walmart India President and CEO Krish Iyer said: “Today we signed an agreement with Karnataka government to open ten cash and carry stores in Karnataka.Simultaneously we have also committed for the women entrepreneurship development programme to be rolled out in the state,“ said Iyer.
Maeztu of Ikea said that each of its stores, which will have an investment of Rs.500 crore, will hire 50% women workforce. Each store will employ 500 people, with another 1500 in support of each store.
The company has a total of 50 suppliers in India, with 5 suppliers in Karnataka making textiles,furniture, bamboo products. Karnataka will be the fourth state–after Telangana, Uttar Pradesh and Maharashtra–where Ikea will have engaged in talks with the government on opening its furniture stores. The Swedish giant bought its first piece of land in Hyderabad and will be opening an outlet in 2017. Over the next 10 years, IKEA plans to open 25 stores in India in all the major Indian cities, including Delhi and Mumbai.
IKEA has been sourcing products from India for close to 30 years. Currently, IKEA sources 300 million euros worth of goods from India. There are 45000 co-workers working directly in suppliers’ factories and a total of 400,000 co-workers in IKEA’s supply chain.
Walmart’s women entrepreneurship development programme will be rolled out in the state to promote women entrepreneurship.The programme will be run on the demand and supply side, with the latter being a much bigger opportunity , according to Iyer. Walmart already sources merchandise and services from 30 and 35 women-owned business, respectively . “We launched our women economic empowerment programme in 2011. Now we are buying $20 billion worth of merchandise from women-owned businesses,“ said Iyer.
On the demand side women entrepreneurs with small kirana stores, hotels, restaurants, and dhabas will be supplied materials at a low cost.
According to him, the company has created a global goal to double the current sourcing from women-owned business in the next five years with an aim to promote diversity and inclusion in the existing supplier mix from both merchandise as well as professional services, and to empower nearly one million women globally .