Furniture retailer IKEA India has closed financial year 2019-20 with net loss of Rs 720.1 crore compared to a loss of Rs 685.4 crore in FY19, as per the regulatory document.
The net sales, however, grew 64.68 per cent to Rs 566 crore in FY20, from Rs 343.7 crore in the previous fiscal, according to Registrar of Companies filing shared by market intelligence firm Tofler.
IKEA India's total revenue stood at Rs 665.6 crore in FY20, up 63.18 per cent, as against Rs 407.9 crore in the previous financial year. The revenue from 'other income' increased to Rs 99.6 crore as compared to Rs 64.2 crore in FY19.
Swedish home furnishings major IKEA, which considers India an important market, had opened its first retail store in Hyderabad in August 2018, followed by online stores in Mumbai, Hyderabad and Pune. The company opened its second retail store in Mumbai earlier this month.
"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, said IKEA India CFO Preet Dhupar, reported PTI.
Besides its new flagship store in Navi Mumbai, IKEA plans to set up two city centre stores in Mumbai to cater the demand from the city.
"We are focussed on reaching the many people in our key markets with products and solutions that are affordable, sustainable, follow the best quality standards and relevant to their life at home," she said.
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 continues to focus on opportunities to grow the business in existing channels and through opening new channels and units; focussing on the cities of Hyderabad, Mumbai, Pune, Bangalore and Delhi NCR," it said.
By Chitranjan Kumar