Ingka Centres, a major arm of the Ingka Group that includes Ikea retail and Ingka Investments, is set to invest approximately €600 million (₹5,500 crore) in developing a new shopping destination in Noida. Sebastian Hylving, the Global Expansion and Development Director at Ingka Centres, revealed the details of this ambitious project in a recent conversation.

The upcoming development, named Lykli Noida, will include a vast retail space of 47,833 square meters, anchored by an Ikea store. The entire center will feature a total leasable area of 135,000 square meters. Hylving expressed confidence in the Indian market, noting, “India is an ideal market for expansion. It is one of our top three priority markets due to its significant growth potential”.

Covering an area of 1.7 million square feet, the Noida project is set to become one of the largest retail developments in India. Hylving underscored the importance of integrating online and physical retail, stating, “Physical retail is not obsolete. If it were, we wouldn’t be investing close to €1 billion in India. Many purely e-commerce brands are now moving into physical spaces. Physical stores offer inspiration and a sense of community that online platforms often lack”.

In addition to Noida, Ingka Centres is also developing a retail destination in Gurugram, which will feature India’s first Ingka Centre, with operations expected to start by 2026. The Noida center is anticipated to open by 2028.

The investment is part of a ₹10,500 crore commitment approved by the Indian government in 2013 for large-format stores. Hylving mentioned that while this investment is part of the approved amount, there is potential for further increases based on market opportunities. “We are actively looking for new opportunities and are very interested in the Indian market”, he said.

Hylving also indicated that future Ingka Centres in India will depend on Ikea’s expansion plans. “We will move forward with new projects only when Ikea is involved”, he added.

The company has set internal revenue goals for the centers and is not overly concerned about rental rates, having thoroughly researched the market before committing. “Successful retail spaces attract more visitors, which benefits tenants and increases the chance for profit sharing. We expect up to 25 million visitors for the Noida center and are confident in its success,” Hylving said.

The Noida center will adhere to sustainable construction practices, including the use of eco-friendly materials and aiming for zero carbon emissions. The project will feature 100 percent water recycling, zero waste to landfill, direct connections to two metro stations, 4,500 parking spaces, and more than 70 electric vehicle (EV) charging stations to promote eco-friendly transportation. “We have established a supplier code of conduct to ensure adherence to these sustainability standards”, Hylving noted.

Ingka Centres operates across 13 global markets, managing 35 large-scale meeting places and about 2,000 brands. Since entering India in 2018 with a store in Hyderabad, Ikea has experienced significant revenue growth compared to competitors. The Gurugram center is projected to draw 20 million visitors annually, while the Noida center is expected to attract 25 million.

Currently, Ikea has an online presence in Mumbai, Pune, Hyderabad, Gujarat, Bengaluru, and 62 other markets. The retailer operates three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, and one city store in Mumbai.