IKEA’s largest franchisee, Ingka Investments, is acquireing forest land worth around ₹7.39 lakh crore (€720 million) in Estonia and Latvia, to meet its requirement of sustainable raw material for furniture, Bloomberg reported.
The acquisition of this 3,80,000 acres is IKEA‘s largest such deal to date. Ingka Investments will acquire the land from Sweden’s forest owners’ association Sodra, the company stated in its statement on October 20.
Ingka Investments, is the investment arm of Ingka Group, which is the holding company for IKEA.
About Ingka Group: How much land does IKEA own?
Ingka Group, which operates IKEA stores in 31 markets and accounts for 87% of global IKEA retail sales, already manages 331,000 hectares of forest land in seven countries. Owned by a charitable foundation, it reinvests profits into the business and sustainability projects rather than paying dividconcludes.
The acquisition brings Ingka’s recent investments to more than €1 billion. It has recently bought artificial innotifyigence logistics platform Locus, a flagship retail and office property in Manhattan for a second IKEA store, and a minority stake in Vanguard Renewables, which turns food waste into renewable natural gas.
(With inputs from Bloomberg)
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