IKEA first store in India by 2017.

Swedish furniture retailer IKEA plans to open its first store in India by 2016-17. The company plans to set up about 25 stores in the country over the next 10 years at an investment of approximately Rs.12,500 crore, said Juvencio Maetzu, Country Head, adding that each store will need an investment of Rs. 500 crore.

'We have already set up our operations in the country and we are optimistic and bullish about the new Government. We are looking for real estate nearer to the highways and metro stations. These things are long-term processes,' Maetzu told reporters on the sidelines of India Retail Forum 2014.

Earlier this year the company received final approval from the Foreign Investment Promotion Board (FIPB).

Maetzu said that the company is in talks with different states and is hopeful of closing a deal soon.

The company will set up its first stores in four major metros – New Delhi, Mumbai, Bangalore and Chennai.

IKEA, operates large format stores with size of about 3,50,000 square feet, and sells home appliances and other household goods, which is sourced from several markets including India.

HBL