Swedish home furnishing retailer IKEA said it will hire 15,000 co-workers in India in next 7-8 years, of which half would be women.
According to the furniture major, it will contribute an additional Rs 1,50,120 to each of its Indian co-workers’, who work for at least five years, pension fund (PF) for its Indian co-workers as part of TACK programme.
Tack is a group’s ‘Loyalty Programme’ to show appreciation for co-workers, who continue working for the success of the business. According to the company, all co-worker gets the same amount regardless of position or salary, and part-time co-workers are rewarded in proportion to their hours worked.
“Our co-workers should know how much we value their experience and commitment,” said IKEA India Country HR Manager Anna Carin Mansson in the statement.
IKEA plans in India
At present, IKEA has close to 400 co-workers in India and plans to have 15,000 co-workers by 2025, of which 50 percent will be women. It is recruiting 500-700 co-workers for each store.
In late November, the Swedish furnishing retailer, opened its first experiential centre IKEA Hej (Hello) Home close to the IT hub of Hyderabad in India. After the Hyderabad store, the second store will open in Mumbai during 2019, followed by Bengaluru and Delhi NCR.
It has marked almost 49 Indian cities, where it wants to set up physical stores.
In India, Ikea will look to sell what it thinks the local market needs, offering pressure cookers alongside its iconic Billy bookcases. It is also thinking about tailoring stores to cities. The one in Hyderabad, for instance, could present products differently (and also offer different products) from the one in Mumbai because average home sizes in the two cities are vastly different.
IKEA says it has conducted extensive research on how its products will be received in India, with its executives visiting over 500 homes across the country. The company claimed to have tested products ranging from couches and mattresses to kitchens and bathroom accessories to see how they withstand the weather, especially humidity.
In India, the home furnishings market grew at a compound annual growth rate of 10.9% between 2011 and 2016, according to Euromonitor data.
IKEA has 403 stores around the world and has a presence in 51 countries. It will invest Rs 10,500 crore in India.