The company is also actively engaged with government authorities and State Governments with various regulations and laws related to the retail business and furniture industry, Ikea said in its filing
NEW DELHI :
Furniture retailer Ikea India Private Limited reported 63% jump in revenues for the year ended 31 March 2020 at ₹665.6 crore—over two years after it opened its first store here, according to data shared by business intelligence platform, Tofler on Thursday.
For the full year, it reported a net loss of Rs720.7 crore, up 5% from a year ago period. Its losses in the previous financial year stood at ₹685 crore, Tofler said in its report.
In the year ago period it reported revenues of Rs407 crore in over seven months after it opened its first store in the country, in the city of Hyderabad, in August 2018.
To be sure, the reporting period covers Ikea’s operations across its single store in Hyderabad along with online operations in Mumbai, Pune and Hyderabad.
“The company further reported a net loss of ₹721 crore during the same fiscal. This is 5 % increase from the last financial year. For the full year, the retailer’s total expenses stood at 1,386 crores up 27% from the year ago period, Tofler said.
The furniture, kitchen appliances and home accessories retailer has so far invested Rs7,000 crore in India, across its two stores and several fulfilment centres.
It recently opened doors to shoppers in Navi Mumbai—marking its second store launch in India.
“During the FY 2019-20, the company continued to welcome customers to its Hyderabad Store by providing them amazing home furnishing experience and solutions. The company has also commenced e-commerce operations in Hyderabad, Mumbai and Pune.
The company continues to focus on opportunities to grow the business in existing channels and through opening new channels and units; focussing on the cities of Hyderabad, Mumbai, Pune, Bangalore and Delhi NCR," Ikea said in its filing shared by Tofler.
Construction of stores in ongoing in Bangalore, it added. "Work has been ongoing for smaller stores in Mumbai and Bangalore. The company has also been engaged in completing the land and building rights acquisition process for the land bought in Gurgaon," Ikea said in its filing accessed by Tofler.
The company is also actively engaged with government authorities and State Governments with various regulations and laws related to the retail business and furniture industry, Ikea said in its filing.
"India is an important market for IKEA. We are here in india for the long term. We are in the initial years of operations in the country where we are investing in our priority markets to offer customers an omnichannel experience . We have just opened our second store in India in Navi Mumbai, and received a warm welcome in the market specially as we ensure a safe shopping experience in these challenging times . We are focussed on reaching the many people in our key markets with products and solutions that are affordable, sustainable, follow the best quality standards and relevant to their life at home," said Preet Dhupar, CFO, IKEA India
The retailer has been ramping up its focus on omni-channel retail, and plans to open multiple points of sales in future markets—including small stores, large big box ones and online sales as it expands in India.