IKEA gets CCEA nod to set up stores, sell food in cafe
Swedish furniture maker IKEA has started the process of setting up stores in the country with the first set of outlets planned in Haryana, Andhra Pradesh, Maharashtra and Karnataka, a top company official has said.
IKEA’s Chief Executive Officer Mikael Ohlsson met Commerce and Industry Minister Anand Sharma on Monday and informed him about the incorporation of its Indian company IKEA India Ltd and its roadmap of setting up shop in the country, a Commerce Department official told Business Line.
Acquiring land
“IKEA has already started the process of identifying the location and acquiring land for setting up stores. In the initial phase, it wants to set up stores in Haryana, Andhra Pradesh, Maharashtra and Karnataka. Noida in Uttar Pradesh also figures in the company's immediate plans,” the official said. Company representatives have already met the Chief Secretary of Haryana to discuss its plans and will soon meet officials from the other identified States too, Ohlsson informed the minister.
Final clearance
The retailer received a final clearance from the Cabinet Committee on Economic Affairs to invest Rs 10,500 crore in India earlier this year. It plans to set up 25 retail stores across the country over the next few years.
Ohlsson also said that his company will be augmenting its sourcing from India. “Apart from engaging clusters, they will be seriously collaborating with handicraft, handloom and leather sectors and the bamboo institute,” the official said.
Single-brand retailers are allowed to bring in 100 per cent Foreign Direct Investment into the country provided they source 30 per cent of their wares domestically.
Please Email the Editor