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IKEA, world’s biggest furniture retailer, will invest Rs 5,500 crore in developing shopping mall, hotel, offices and retail areas in 5 lakh sq ft, Noida authority said in a statement on Friday.

Noida authority had allotted the land to Ingka Centers India Pvt. Ltd in October 2019 and lease deed of the same was signed on Thursday.

Noida authority said that it has generated revenue of Rs 850 crore through this allotment while UP government has earned Rs 54 crore as stamp duty. 

“Attended the Land Transfer/Lease deed exchange ceremony hosted by Authority with INGKA Centres, India in the dignified presence of Hon' chief minister, UP Yogi Adityanath and Hon' development minister Satish Mahana through VC,” Noida authority CEO Ritu Maheshwari tweeted on Friday. 

IKEA will also develop a foot over bridge connecting two metro stations and nearby road infrastructure for smooth flow of traffic. 

IKEA had in 2013 received the Indian government’s approval to invest Rs 10,500 crore in the country to open big box stores. 

The Swedish retailer entered India two years ago by opening a store in Hyderabad, and has since seen revenue surge ahead of rivals including PepperFry and Urban Ladder

The retailer, known for its ready-to-assemble products, started sourcing from India over three decades ago, and has more than four dozen suppliers for its global sourcing. For the Indian operations, it sources about 1,500 products locally, out of 7,500 products on its shelves.

IKEA had earlier announced plans to open 25 stores in India, but it has now rejigged its expansion plans with a new ambition to serve 100 million people by 2022 and open a lot more stores, including small ones. 

The company has recently opened its second store next week in Navi Mumbai, which is of about 5.3 lakh square feet, or about the size of ten football fields.

The National Capital Region and Bengaluru were among the priority markets for parent Ingka Group and it would open 6-8 IKEA stores of different formats in each city in the next few years.