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FDI constraints restrain Ikea from setting up shop in India
24 Sep '10
1 min read
Ikea, a home furnishings retail store giant from Sweden intends to set up store operations in India, which is now considered amongst the fastest growing countries in the world.
It urged the Indian government to relax its strict rules to facilitate the company to set up its super-stores in the country, said Mr. Mikael Ohlsson, Chief Executive of the company.
Tough foreign investment rules in India, restrict foreign retail companies to just single-brand outlets and are only permitted in to wholesaling, in a bid to protect local, family-run stores of the country.
Ikea, is recognized for its flat pack stylish furniture and home furnishings, plans to set up more stores in the budding market of China.
It sources around €500 million worth of textiles and other products from India annually and aims to augment this value up to €one billion in next three to four years, added the Chief Executive.
As and when, the home furnishings retailer plans to set up the chain in India, it could supply at least 50 percent of items from its Indian production sources, the way it does in China and Russia.
It urged the Indian government to relax its strict rules to facilitate the company to set up its super-stores in the country, said Mr. Mikael Ohlsson, Chief Executive of the company.
Tough foreign investment rules in India, restrict foreign retail companies to just single-brand outlets and are only permitted in to wholesaling, in a bid to protect local, family-run stores of the country.
Ikea, is recognized for its flat pack stylish furniture and home furnishings, plans to set up more stores in the budding market of China.
It sources around €500 million worth of textiles and other products from India annually and aims to augment this value up to €one billion in next three to four years, added the Chief Executive.
As and when, the home furnishings retailer plans to set up the chain in India, it could supply at least 50 percent of items from its Indian production sources, the way it does in China and Russia.
Fibre2fashion News Desk - India
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