India not ready for organised retail: IKEA

Swedish home furnishing retail chain IKEA today said India was not even 'an emerging market' ready for big retailers with players making more mistakes than success.

The company, which sources around 5% of its global consumption from India, also slammed the government for not opening foreign direct investment (FDI) in single brand retailing, especially for companies whose presence in India would not affect mom-and-pop stores.

"India is not ready for big retailers yet... may be we can talk about it in 2015-16. I am not impressed by the big investments happening in this market today. I want to see return on investment, which is not happening," IKEA India Property and Establishment Manager Staf Lenders said at the Technopak Retail Summit here.

He said India lacked basic conditions like infrastructure, supply chain, FDI regulations, value added taxes and heavy import duty required for retailers to succeed. Besides, soaring land prices and human resource are some of the other major issues, he added.