Telangana lays out red carpet for new Ikea outlet in Hyderabad
24 Sep 2014
Ikea India, an arm of the Swedish furniture giant Ikea AB, today signed a memorandum of understanding (MoU) with the Telangana government for establishing an outlet store in Hyderabad.
Ikea is perhaps the leading global retailer of furniture, household goods and textiles. It was one of the first companies in India to be allowed 100 per cent foreign direct investment (FDI) in single-brand retail under the government's liberalised policy.
The government cleared Ikea's Rs10,500-crore proposal for setting up retail stores in May 2013.
"The decision by Ikea to set up its first store in Hyderabad will place Hyderabad on the international map of Ikea stores. Ikea retail outlets have a standard design and each location entails an investment of $100 million (Rs500-600 crore),'' a state government release said.
In addition, the backward integration of supplier linkages will have tremendous economic impact to the state, it added.
Chief minister K Chandrashekar Rao, while assuring Ikea of all possible support from the government, suggested that it should tie up with artisans in Telangana like Nirmal, Silver Filigri, Pembarti and so on, for their furniture as add on things.
Responding to a request made by Ikea India CEO Juvencio Maeztu, the chief minister has agreed to accommodate their store near one of the Metro retail terminals, the release said.
The Telangana government will support Ikea's investment by appointing the commissioner of industries as a single-contact point to ensure a speedy, transparent process for all applications, permissions and licences.
