Ikea inks MoU to open stores in UP

25 Sep '15

2 min read

Sweden based home furnisher Ikea has signed a Memorandum of Understanding (MoU) with the government of Uttar Pradesh (UP) for setting up stores in the state, according to media reports.

The MoU was inked by Mahesh Kumar Gupta, principal secretary, Infrastructure and Industrial Development, and Juvencio Maeztu, CEO, Ikea India, in presence of UP chief minister Akhilesh Yadav.

On signing the MoU, Yadav said, “Due to industry friendly policies and world class infrastructure facilities, renowned companies are coming forward to invest in UP.”

The Swedish retailer is expected to set up stores in different regions of UP, based on its global model. The first phase will cover Agra, Noida, and Lucknow and an investment of Rs 500 crore per store is estimated.

The company is working closely with carpet suppliers of Bhadoi to increase production at carpet units and enhance working conditions, by setting up an exclusive automatic loom.

Earlier in July this year, Ikea announced the purchase of land in Hyderabad, where the company expects to open its first store by the end of this year or early next year.

Ikea was one of the first companies in India to be allowed 100 percent foreign direct investment (FDI) in retail under the government's liberalised policy. (HO)

Fibre2Fashion News Desk – India

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