Sweden’s IKEA to enter furniture retailing in India
22 Jun 2012
Sweden-based single brand furniture retailer IKEA has made an application for starting operations in the country and has proposed to increase outsourcing from the country.
IKEA, the world's largest furniture maker, plans to invest around Euro 1.5 billion in the Indian retail market.
IKEA plans to set up 25 retail stores through a wholly owned subsidiary, involving overall investment of Euro 1.5 billion.
IKEA chief executive Mikael Ohlsson today met minister of commerce, industry and textiles Anand Sharma in St Petersburg to confirm that it will invest around Euro 600 million (about Rs4,200 crore) in India in the first stage.
An additional estimated FDI of up to Euro 900 million (about Rs6,300 crore) is expected to follow. This will take IKEA'a total proposed investment in Indian retail operations to Euro 1.5 billion (about Rs10,500 crore).
IKEA said it would also increase sourcing for its global operation from India significantly.
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