NEWS | Single-brand retail: IKEA to invest Rs 10,500 cr in India

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Giving a boost to the investor sentiment, Swedish home furnishing major IKEA on Friday approached the government with a proposal to invest 1.5 billion euros (Rs 10,500 crore) to set up 25 stores in the country.

The IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single brand retail trading in India through a 100 per cent subsidiary, Commerce and industry Ministry said in a statement.

This would be the largest investment in the single-brand retailing ever since the government has allowed foreign investment in this sector in January this year and comes at a time when FDI inflows have declined by 41 per cent in April.

The company has filled an application with the government through its adviser Titus and Co Advocates. The proposal needs to be finally be approved by the Cabinet Committee on Economic Affairs (CCEA), as the proposal exceeds Rs 1,200 crore.

As per the proposal, IKEA would be investing 600 million euros (Rs 4,200 crore) to open 10 stores in the first stage.


SOURCE: http://businesstoday.intoday.in/story/ikea-india-single-brand-retail/1/185744.html