Ikea in India

[tech_genie]

Ikea wins Indian agency approval for stores

India's foreign investment agency has approved Ikea's entry into the Indian market, bringing the Swedish firm closer to being the first major foreign retailer with wholly owned outlets.

Ikea plans to open 25 stores, investing about $2bn (£1.3bn) over the next 15 to 20 years.

The proposal now needs approval from the federal cabinet.

It comes with Indian policymakers trying to boost foreign investment to spur the slowing economy.

"The government is committed to play a constructive role in encouraging FDI (foreign direct investment) specially in areas which create jobs and provide technological advancement," a statement from the trade minister said.

Last year India changed its policies to allow some foreign retailers to own 100% of their Indian subsidiaries.

It also allowed foreign multi-brand retailers, such as Wal-Mart and Carrefour, to own as much as 51% of outlets.

This was Ikea's second attempt to get approval from the Foreign Investment Promotion Board.

In November, the board cleared the proposal but restricted Ikea to selling furniture and not products it does not brand, including food and beverages, textiles, books and office supplies.

Ikea objected to those requirements and resubmitted the proposal. Monday's decision allows Ikea to bring the same model it uses elsewhere to India.

"We consider this as a very positive development," Juvencio Maeztu, IKEA country manager, said in a statement.

 

[tech_genie]

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FIPB clears Ikea’s Rs 10,000 cr plan, now over to cabinet panel

The Foreign Investment Promotion Board (FIPB) has cleared Swedish Furniture major Ikea’s proposal to open single-brand retail stores in India, paving way for it to invest $1.86 billion (about Rs 10,000 crore) there over 15-20 years.

“Ikea case has been cleared by Foreign Investment Promotion Board and will now be placed before Cabinet Committee on Economic Affairs (CCEA) for final approval,” a source was quoted as saying in a PTI report.

A Reuters story attributed the news to Trade Minister Anand Sharma.

“The government is committed to play a constructive role in encouraging FDI (Foreign Direct Investment) specially in areas which create jobs and provide technological advancement,” Reuters quoted a statement from the Trade Minister.

“Yes,” Commerce and Industry Minister Anand Sharma said when asked if Ikea’s proposal has been cleared in toto.

After CCEA’s nod, Ikea would be able to open cafeterias at its proposed retail outlets. Sharma said the decision will “resonate not only in Davos but in the all major countries of the world”.

“It sends a clear message that India is very serious in ensuring that whatever policy initiatives we have taken they are implemented in letter and spirit and also to create confidence among the global investors that India has the welcoming environment for FDI,” Sharma said.

The FIPB was earlier scheduled to take up the Ikea case on 24 January, but the meet was advanced so that it could be cleared before the Indian delegation leaves for Davos.

The Finance Ministry cleared Rs 10,000-crore investment plan of Swedish Furniture major IKEA to open single-brand retail stores. AFP
Earlier, Ikea was given permission to invest only Rs 4,200 crore. However, following only a part approval to its investment plans, the company took up the issue with industry department that in turn asked the Board to reconsider the decision. Ikea in a statement said: “We consider this as a very positive development. We are now awaiting for approval from the Cabinet and subsequently a notification so that we can initiate the process of establishing Ikea stores in the country.”

Sharma exuded the confidence that Cabinet would give its approval.

Ikea Group, which manufactures and sells home and office furnishing products, proposes to invest in single-brand retail trading in India through a 100 percent subsidiary.

The world’s largest furniture retailer plans to set up 10 furnishing and homeware stores as well as allied infrastructure in over 10 years in India. Subsequently, it plans to open 15 more stores.

Ikea ‘s would be the largest investment in the single-brand retailing ever since the government has allowed foreign investment in this sector. Ikea has been sourcing many products from India for the past 25 years.

With the government relaxing the mandatory 30 percent sourcing clause in September, Ikea which had earlier expressed concerns over the issues had put in its final application.

Sharma further said the Government is committed to playing a constructive role in encouraging FDI specially in areas which create job and provide technological advancement.

Globally, he said, Ikea has a business model which integrates making them a part of global value chain.

Sharma, who will be attending the WEF at Davos, said India will have an investor round-table expected to be attended by the leading CEOs.

Referring to FDI in multi-brand retail, Sharma said several global companies like Tesco, Carrefour and Walmart have shown interest.

“I am told that some of these CEOs also are meeting us in Davos,” he added.

He also expressed confidence that India will soon see foreign investment in the multi-brand retail sector too, where 51 percent FDI is permitted.

Sharma further said that global retailers will also create job opportunities, provide choice to consumers.

“What will be sourced from India will be sold by these global retailers all over the world, brining to India, besides the job creation, precious foreign exchange,” he said.

Source: FIPB clears Ikea’s Rs 10,000 cr plan, now over to cabinet panel | Firstpost

 

[Bapun]

Shocked By Big Malls Not Allowing Customers To Carry Their Own Bags: Bengaluru Consumer Court Asks Ikea To Refund â¹20 To Customer, Pay Compensation

A consumer court in Bengaluru has directed Ikea India Private Limited to refund a sum of Rs 20 charged for providing a carry bag to its customer along with interest and pay a compensation of Rs 1000...

www.livelaw.in

 

[Bapun]

IKEA, a Swedish home furnishings retailer, announces the launch of its ecommerce deliveries to thousands of pin codes across 62 districts in the states of Maharashtra, Karnataka, Telangana, and Andhra Pradesh. The expansion comes into play as IKEA sees increasing demand customers hailing from nearby cities and towns.

IKEA expands e-commerce deliveries to thousands of pin codes in India

It plans on increasing across 62 districts in the states of Maharashtra, Karnataka, Telangana, and Andhra Pradesh.

www.afaqs.com

 

[Bapun]

Swedish furniture retailer IKEA on February 22 said it will close down its store in the Mumbai R City Mall by the mid of this year due to limitation of layout, design and location.

IKEA to close its store at Mumbai R City Mall by mid-2024

Swedish furniture retailer IKEA on February 22 said it will close down its store in the Mumbai R City Mall by the mid of this year due to limitation of layout, design and location.

www.thehindu.com