Furniture retailer IKEA India saw its net loss widen to Rs 720.1 crore in the financial year ended March 2020.
The company had registered a loss of Rs 685.4 crore in the financial year ended March 2019.
About Company
IKEA is a multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories, among other useful goods and occasionally home services.
Founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, IKEA has been the world’s largest furniture retailer since 2008.
Ingka Group is a strategic partner in the IKEA franchise system, operating 378 IKEAstores in 30 countries. Ingka Group has three business areas:IKEARetail, Ingka Investments and Ingka Centres.
Ingka Holding Overseas B.V., Netherlands held 99.90 per cent equity shares of the company as on on March 31, 2020.
Net Sales
IKEA India saw its net sales grow 64.68 per cent to Rs 566 crore in FY 2019-20 from Rs 343.7 crore in the previous fiscal.
Total Revenue
Its total revenue during 2019-20 fiscal was at Rs 665.6 crore, up 63.18 per cent, as against Rs 407.9 crore in the previous financial year.
Other Income
The company’s revenue from ‘other income’ in FY20 was at Rs 99.6 crore as against Rs 64.2 crore in FY19.
Investments
Besides its new flagship store in Navi Mumbai, IKEA also has plans to set up two city centre stores in Mumbai to cater the demand from the city.
It also has plans to set up two city centre stores in Mumbai to cater the demand from the city.
IKEA is also investing in the online system and has the ambition to reach 100 million Indian customers by 2022 through its omnichannel approach.
The company has also been engaged in completing the land and building rights acquisition process for the land bought in sector 47, Gurgaon in NCR.
Comment from CEO
Preet Dhupar, “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.”
