Ikea India Scenario
India Scenario -
IKEA - Swedish furniture retailer proposal to invest 105 billion rupees ($1.95 billion) in the country to open 25 stores
The company's planned investment is the largest by a foreign retailer in India since the country amended its laws in late 2011 to allow 100% foreign ownership in single-brand retail ventures.
IKEA has already outlined its long-term approach in India by proposing to open 10 stores in the country in the next 10 years of operation followed by 15 additional outlets in the second phase with a total investment of `10,500 crore, according to its application with the Foreign Investment Promotion Board (FIPB).
IKEA plans to open its globalsized stores ranging about 300,000 sq ft. That would make it the largest store by size in India. The company generally stocks about 9,500 different home and office furnishing products in its stores.
IKEA India CEO Juvencio Maeztu said this is "a big step in our journey to open IKEA stores in India."
IKEA's entry could help transform the country's largely unorganized $500 billion retail sector and provide some relief for policymakers who have been eager to attract foreign investment
In addition to selling furniture, IKEA has secured approval to operate cafes and restaurants in its stores.
An Ideal location for us would be 10 acres space (it could be between 5-15 acres), close to a highway with good visibility so it is not three kilometers inside and with public transport infrastructure," Juvencio Maeztu, IKEA's India chief executive
IKEA has already outlined its long-term approach in India by proposing to open 10 stores in the country in the next 10 years of operation followed by 15 additional outlets in the second phase with a total investment of `10,500 crore, according to its application with the Foreign Investment Promotion Board (FIPB).
Meanwhile, Maeztu, 45, is busy understanding the Indian culture to introduce the best possible and workable IKEA model in the country.
IKEA - Swedish furniture retailer proposal to invest 105 billion rupees ($1.95 billion) in the country to open 25 stores
The company's planned investment is the largest by a foreign retailer in India since the country amended its laws in late 2011 to allow 100% foreign ownership in single-brand retail ventures.
IKEA has already outlined its long-term approach in India by proposing to open 10 stores in the country in the next 10 years of operation followed by 15 additional outlets in the second phase with a total investment of `10,500 crore, according to its application with the Foreign Investment Promotion Board (FIPB).
IKEA plans to open its globalsized stores ranging about 300,000 sq ft. That would make it the largest store by size in India. The company generally stocks about 9,500 different home and office furnishing products in its stores.
IKEA India CEO Juvencio Maeztu said this is "a big step in our journey to open IKEA stores in India."
IKEA's entry could help transform the country's largely unorganized $500 billion retail sector and provide some relief for policymakers who have been eager to attract foreign investment
In addition to selling furniture, IKEA has secured approval to operate cafes and restaurants in its stores.
An Ideal location for us would be 10 acres space (it could be between 5-15 acres), close to a highway with good visibility so it is not three kilometers inside and with public transport infrastructure," Juvencio Maeztu, IKEA's India chief executive
IKEA has already outlined its long-term approach in India by proposing to open 10 stores in the country in the next 10 years of operation followed by 15 additional outlets in the second phase with a total investment of `10,500 crore, according to its application with the Foreign Investment Promotion Board (FIPB).
Meanwhile, Maeztu, 45, is busy understanding the Indian culture to introduce the best possible and workable IKEA model in the country.