Ikea India, a subsidiary of Swedish furniture retailer signed MoU with Telangana government
Ikea India, a subsidiary of Swedish furniture retailer Ikea AB, on Wednesday signed an MoU with the Telangana government for establishing its store in the state.
Founded in 1943, Ikea is one of the world’s largest retailers in 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 retail under the government’s liberalized policy.
In May 2013, the government cleared the proposal of the Swedish furniture major to invest Rs 10,500 crore for setting up single brand retail stores.
“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 (Rs 500-600 crore).
Responding to a request made by Juvencio Maeztu, Ikea India CEO, 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, the statement further said.