Ikea wants approval to retail entire range of products in India

Written by Press Trust of India | New Delhi | Updated: Dec 28 2012, 06:52am hrs
Swedish furniture retailer Ikea on Thursday said it wants the government to allow it to retail its entire range of products, including opening of cafes in its stores in India, in the wake of FIPB approving only R4,200 crore investment out of a total of a proposed R10,500 crore.

The Ikea Group must have the ability to retail its entire range of products in India as is being done globally in every country, where Ikea stores are located. This is as per the Ikea concept, a company spokeswoman said. She said the Ikea Group has clarified to the Indian government on the categories of products that it can sell here based on its global concept and range.

It is not the intention of Ikea Group to seek a general or broad approval for a wide variety of products. We are true to our application that we submitted in June 2012 and we have not submitted a fresh proposal, the spokeswoman added.

In that application the company had proposed to invest R10,500 crore over a period of time by set up 10 furnishing and homeware stores as well as allied infrastructure over 10 years in India. Subsequently, it plans to open 15 more stores.

The FIPB had, however, in its November 20 meeting cleared investment of only R4,200 crore by Ikea and forwarded the proposal to Cabinet Committee on Economic Affairs (CCEA) for consideration as proposals of FDI over R1,200 crore requires CCEA nod.

The Ikea Group is confident that the Indian government will support Ikeas application as per the Ikea concept and Ikea respects the Indian governments efforts in this process, she said, adding the group is now waiting for the approval from the CCEA.

Government sources had said Ikea has approached FIPB again seeking a review of its earlier application so that it is allowed to open cafeteria at its proposed single-brand retail stores in the country.