 "Ikea's first India outlet not before 2017")
At Rs 10,500 crore, Ikea's has been the biggest investment proposal in single brand retail so far. The company is making a second attempt to enter India, after it changed its mind a few years ago due to difficult policy conditions. Even after the UPA government allowed up to 100 per cent foreign investment in single brand retail, Ikea had been engaged in a dialogue with the Centre for easing some of the sourcing conditions. Subsequently, the condition on mandatory sourcing from Indian small and medium enterprises was eased for single brand chains.
The company, which wants to open 25 stores in the country over a period of 10 years, is in talks with state governments in Karnataka, Maharashtra, Delhi and NCR as well for buying land to set up stores. The company has also started hiring and may have around 2,000 persons employed directly and indirectly for the India operations, according to the CEO.
Meanwhile, Ikea organized its fourth 'Make More in India' seminar in Warsaw, Poland, on Tuesday, in collaboration with Invest India, the country's official agency dedicated to investment promotion, according to a company statement. The seminar was in response to Prime Minister Narendra Modi's call for Make In India, the company said.
Ikea suppliers based in Poland and Central Europe are exploring ways to set up large scale manufacturing units in India. ''The idea is that they will bring with them global expertise, knowledge and manufacturing techniques and generate new employment opportunities in India. This move by Ikea is in line with its growth strategy of doubling sourcing volumes from India by 2020,'' the company said.
