Govt approved IKEA’s FDI proposal of Rs.10,500 Crore
The government allowed Swedish furniture company IKEA to invest Rs 10,500 crore- the largest investment in the single brand retailing – for setting up home furnishing stores in the country since the government liberalized the FDI policy in retail sector in November, 2011.
IKEA is private held company and founded in Sweden in 1943. It is the most successful mass market retailer that designs and sells ready-to-assemble furniture (such as beds, chairs, and desks), appliances, and home accessories in 230 stores in 33 countries. The company is renowned for expertise to control the cost, product development and its global expansion.
Impact in India if IKEA enters Indian market:
- IKEA will set up 10 stores of furniture and home ware products over next 10 years.
- Enhanced growth in retail sector as India has market of good sourcing to change retail standards.
- Provide an opportunity to Indian small and medium enterprises for integrating into global value chain.
- Provide a diverse choice for the Indian consumers for a wide range of products.
Month: Current Affairs - May, 2013