Home / Knowledge / News / Textiles / Ikea one step away from entering Indian retail market
Ikea one step away from entering Indian retail market
22
Nov '12
Swedish home furnishing major Ikea has come a step closer to become the largest investor in India’s single-brand retail, as the Foreign Investment Promotion Board (FIPB), the Government of India’s single-window body to clear foreign investment proposals, has given its nod for the company’s proposal to enter Indian market.
 
The Swedish retailer proposes to invest Rs. 105 billion through a 100 percent subsidiary to enter the Indian market, initially by setting up 25 outlets across India.
 
Ikea was earlier reluctant to enter the Indian market due to the compulsory 30 percent sourcing clause applicable for foreign direct investment in the country’s single-brand retail sector. However, Ikea submitted its application after the Government relaxed the clause in September this year.
 
Ikea’s proposal has already passed the scrutiny by the Department of Industrial Policy and Promotion (DIPP), falling under the purview of the Ministry of Commerce and Industry.
 
Since the FIPB is authorized to directly clear FDI proposals only worth up to Rs. 12 billion, Ikea’s proposal now awaits the nod of the Cabinet Committee on Economic Affairs (CCEA).
 
The Indian Government is struggling to present a foreign investment-friendly image and hence the approval from CCEA should not be a problem, according to experts.
 
Ikea currently operates more than 330 stores in 44 countries. The company will build a supply chain network in India prior to rolling out its first outlet in three years time.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search