Swedish retail major IKEA to open retail stores in 4 states
NEW DELHI: Swedish retail major IKEA Group has identified four states — Haryana,Andhra Pradesh, Maharashtra andKarnataka — to set up single-brand retail stores as part of its Rs 10,500-croreinvestment in India.
IKEA CEO MikaelOhlsson apprised commerce and industry minister AnandSharma of the gorup's business plans on Monday. "The CEO informed the minister of the investment plans in the four states including land purchase process. The company is also looking at Noida in Uttar Pradesh to set up stores," an official familiar with the developments said.
The firm has incorporated its Indian subsidiary as IKEA India Ltd. The company would enhance its sourcing from India and would collaborate with handicraft and handloom sector and also collaborate with the National Institute of Design for its products.
The government had on May 2 approved IKEA's Rs 10,500 crore proposal for setting up home furnishing stores in the country. IKEA's investment is the largest in the single-brand segment ever since the government allowed 100% foreign investment in this sector last year.
The firm had proposed setting up 10 furnishing and homeware stores as well as allied infrastructure in India over the next 10 years. In the second phase, the company plans to open 15 more stores.
The government has bent backward to accommodate various concerns raised by the retailer regarding the single brand retail policy. IKEA has been allowed to run cafes and restaurants within its single brand stores in India, but it cannot sell packed food items. It can sell food and beverages at its restaurants/cafes located within its stores.