Government gives approval for IKEA's Rs 10,500 cr investment plan in India

By VJ Media Bureau | Vjmedia Works | May 03, 2013

The move will be formally paving the way for the Swedish retail giant to set up shop in Asia's third-largest economy.

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal of Swedish home furnishing major IKEA to enter India . The approval would result in FDI inflows amounting to Rs.10,500 crore approximately into the country. According to PIB press release, this is the biggest investment in single-brand retail sector has witnessed after the government liberalised policy in November 2011.

"This is a very positive development. Since many years already, India is an important market for the IKEA Group from a sourcing perspective. We have been active in the country for more than 25 years and will continue to increase our sourcing in India from both existing and new suppliers building on long term relations and shared values," Mikael Ohlsson, President and CEO, IKEA Group, shared exclusively with VJ Media Works Bureau.

"We feel very welcome in India. This is a big step in our journey to open IKEA stores in India. We feel very confident that the people of India will love to visit and to shop at IKEA and by offering good quality home furnishing products and solutions at affordable prices, we can bring a difference to a better life at home in the many years to come.â€, said Juvencio Maeztu, CEO IKEA India.

The significant investment from IKEA needed a nod from the government even though the Foreign Investment Promotion Board (FIPB) - which clears foreign investment proposals in the country - gave its approval to IKEA's investment proposal in February.