There are now 403 IKEA stores in 49 countries with a sales volume of 38.3 billion euros. But its previous attempt in 2006 at reaching India's burgeoning middle class fell foul of local regulations.
IKEA opened first store nearly five years after it received government approval in 2013 to invest Rs 10,500 crore in the country to open retail stores.
This is a significant boost for IKEA - which remains the single largest single brand FDI proposal to have come to India, waiting in the wings till the sourcing norms were tweaked to its advantage. Chicken and vegetarian meatballs, for ₹129 a serve, will replace the traditional Swedish ones made with beef and pork. A six-piece bowl set with cutlery for kids costs 131 rupees, for example.
"As we see big opportunities in India, we believe that we will increase this investment as we continue our expansion in India in the future", it said in a statement.
Ikea, which has stores in 49 countries, has a mixed global range with the local needs and realities.More news: Takeaways from Day 7 of the Manafort Trial
"Food is part of the total experience".
The store also exhibits two full homes reflecting "Life at Home in Hyderabad". "Our products will be inspiring, affordable, and convenient for Indian customers".
Ikea is harping on affordability to capture the Indian market and has 1,000 products priced below Rs 200.
Devangshu Dutta, Chief Executive at Third Eyesight, a retail and consumer business consulting company, said: "Ikea has always planned its stores to be a day-long destination event for families". IKEA will contribute in the training of carpenters on UrbanClap's platform, skilling them to become professional IKEA assemblers.
A re-look at the strategy, by the company that had secured government of India approval to invest up to ₹10,500 crore, would translate into the company looking beyond the 25 stores proposed in the country by 2025.More news: Pochettino wants a title challenge from Spurs
In a milestone that's been a little more than a decade in the making, the IKEA store in India will (finally!) open on Thursday, August 9, bringing the most-anticipated Swedish furniture retailer's home decor products to Hyderabad's Hitech City.
DIY furniture is IKEA's signature, something most of its customers are happy to do by themselves elsewhere, but not in India. "Profitability will take time".
Locals in Hyderabad meanwhile were sceptical.
"I will certainly visit the store soon, probably at the weekend".
"I will wait and watch", Mohammad Noor, a businessman, told AFP.More news: Mourinho phoned Zouma to convince him of United move
And Siddharth, in charge of a Hyderabad store where customers order bespoke furniture, said Ikea might attract hard-up students but in general people would stick with "quality". "The regular furniture consumer will stay with the more solid wood available in the Indian market". "I don't think it will give us much competition".