IKEA to set up shop in India soon – 100% FDI in single-brand retail likely


IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international home products Swedish Corporation. It designs and sells ready-to-assemble furniture, appliances and home accessories. The company is now the world's largest furniture retailer. With Government permitting100% FDI in single brand retail, the Swedish giant company IKEA is finally getting ready to set shop in India

IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international home products Swedish Corporation. It designs and sells ready-to-assemble furniture, appliances and home accessories. The company is now the world's largest furniture retailer. With Government permitting100% FDI in single brand retail, the Swedish giant company IKEA is finally getting ready to set shop in India. Presently India allows 51% FDI in single brand retail like IKEA.

According to Commerce & Industry Minister Anand Sharma, On-board PM's aircraft, said that IKEA had asked the government to hike the FDI limit in single-brand retail. "IKEA sources almost 30% of its products from India. It will create jobs in India. The government is considering it," he said on route to Hanoi from Kuala Lumpur.
Earlier In 2009, IKEA had planned to open stores in India with an investment of about $1 billion. However, the plan fell through as the government's 49% FDI ceiling held it back. IKEA sources $655 million worth materials and products from India. In keeping with its business model, IKEA is not keen on setting 100% up a JV by roping in an Indian partner with 49% stake.
CEO of the company, Mikael Ohlsson met Sharma last month and sought further liberalization of ownership norms in single-brand retail, like IKEA.


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