IKEA India, the iconic Swedish furniture retailer in the country, represented by its CEO Juvencio Maeztu, signed an MoU with special chief secretary (Industries) Pradeep Chandra of Telangana on Wednesday in the presence of chief minister K Chandrasekhar Rao for establishing its store in Hyderabad.
Sweden-based IKEA is one of the world’s largest retailers in furniture, household goods and textiles. It was one of the first companies in the country to be allowed 100 per cent foreign direct investment (FDI) in retail.
IKEA retail outlets have a standard design and each location entails an investment of `500 to `600 crore. In addition, the backward integration of supplier linkages will have tremendous economic impact on Telangana.
Speaking on the occasion, the chief minister said that during his visit to Singapore he saw IKEA stores there. He suggested to the IKEA representatives that they should tie up with artisans in Telangana like Nirmal, Silver Filigri, Pembarti and so on for their furniture as add on things. He also suggested that the pearls of Hyderabad which were once very famous should also be made use of. He said that IKEA should create employment opportunities for the local artisans.
The chief minister said that whatever the IKEA wants to sell should be sourced from Telangana. Responding to a request made by IKEA CEO, the chief minister had agreed to accommodate their stores near one of the Metro retail terminals.
The representatives of IKEA presented the chief minister with a copy of their catalogue titled “Where the wonderful every day starts.” The Telangana government would support IKEA’s investment by appointing the commissioner of industries as a single contact point to ensure a speedy, transparent process for all applications, permissions and licenses. Industries and minies minister T Harish Rao, IKEA India CEO Juvencio Maeztu, chief finance officer of IKEA Preet Dhupar, IKEA country manager Neetu Kapasi were present.
Source: The New Indian Express