Home / Knowledge / News / Textiles / Ikea puts off India plan over local sourcing clause
Ikea puts off India plan over local sourcing clause
27
Jan '12
Ikea, the Swedish retailer of homeware items, including home textiles, has put aside its plan to open its outlets in India.

According to the notification issued by the Government of India earlier this month, allowing 100 percent foreign direct investment (FDI) in single-brand retail segment, companies investing more than 51 percent are required to source at least 30 percent of their goods from domestic small and medium enterprises (SMEs).

However, Ikea's opting out of entering Indian market over the 30 percent local sourcing clause has come as a surprise to many.

Companies like Ikea are already sourcing about 30 percent of their requirements from India and hence, the clause should not be a hurdle to such foreign brands wanting to set up their shops in India, an expert said.

Mikael Ohlsson, Ikea CEO, said the Government of India's decision to permit full ownership of operations to single-brand foreign retailers in India is “a very positive change”, but it would be easier for food retailers to meet the domestic sourcing clause rather than single-brand retailers who have established, international range of products.

Ikea spokesperson said the company has found that the clause related to local sourcing from SMEs would be difficult for it to meet.

Several foreign retail brands, including Wal-Mart, Tesco and Carrefour, have been sourcing items like rugs and textiles from Indian firms for many years. These brands also intend to open outlets in India, considered to be the third largest retail market in Asia.

Fibre2fashion News Desk - India


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search