KCR assures state support to Swedish firm’s Indian unit
Telangana CM K. Chandrasekhar Rao assures State support to Swedish firm's Indian unit
Hyderabad: Ikea India, a subsidiary of Swedish furniture retailer Ikea AB, on Wednesday signed an MoU with the Telangana government for setting up its store in the state. The MoU was inked in the presence of Chief Minister K. Chandrasekhar Rao.
Founded in 1943, Ikea is one of the world’s largest retailers in furniture, household goods and textiles. It was one of the first companies in India to be allowed 100 per cent foreign direct investment in retail under the government’s liberalised policy.
In May 2013, the Centre cleared the proposal of the Swedish furniture major to invest Rs 10,500 crore for setting up single brand retail stores.
“The decision by Ikea to set up its first store in Hyderabad will place the city on the international map of Ikea stores. Ikea retail outlets have a standard design and each location entails an investment of $100 million (Rs 500-600 crore). In addition, the backward integration of supplier linkages will have tremendous economic impact for the state,” a press release issued by the Chief Minister’s office said.
Mr Rao, while assuring the furniture maker all possible support from the government, suggested that Ikea should tie up with artisans in Telangana like Nirmal, Silver Filigri, Pembarti and so on, for their furniture as add ons.
Responding to a request made by Juvencio Maeztu, Ikea India CEO, the Chief Minister agreed to accommodate their store near one of the Metro retail terminals, the release said.
The Telangana government will support Ikea’s investment by appointing the commissioner of industries as a single contact point to ensure a speedy, transparent process for all applications, permissions and licences, the statement added.
( Source : dc correspondent )
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