IKEA India, the Indian subsidiary of the iconic Swedish furniture retailer, represented by its CEO Juvencio Maeztu, signed an MOU with Pradeep Chandra, Special Chief Secretary (Industries), on Wednesday morning in the presence of Chief Minister K Chandrashekar Rao, for establishing its store in Telangana.
IKEA is one of the world's largest and most recognizable furniture, household goods and textiles retail company, and is headquartered in Sweden. It was one of the first companies in India to be allowed 100% FDI in retail.
IKEA intends to open a number of stores in India. Its decision to set up its first store in Hyderabad will place Hyderabad on the international map of IKEA stores.
IKEA retail outlets have a standard design, and each location entails an investment of $100 million (Rs. 600 crores).
In addition, the backward integration of supplier linkages will have a tremendous economic impact on the State.
Speaking on the occasion, the Chief Minister said that during his visit to Singapore he had seen the IKEA stores there, and was quite impressed.
He suggested to the IKEA representatives that they should tie up with artisans in Telangana like the ones in Nirmal, Silver Filigri and Pembarti and display the latters' furniture as add-on items, creating employment opportunities for the local artisans.
He also suggested that the pearls of Hyderabad, which were once very famous, should also be made use of.
The Chief Minister said that whatever IKEA wants to sell should be sourced from Telangana.
KCR said that the Government of Telangana would extend all possible support, and would also help IKEA by treating it as an industry to enable it to qualify for the Government of India incentives.
Responding to a request made by the IKEA CEO, the Chief Minister also agreed to accommodate its store near one of the Metro retail terminals.
IKEA said that it was impressed by Telangana's open investment climate in its commercial and industrial fields, as well as by the potential it offered for expanding IKEA India's supply chain and network.
The representatives of IKEA presented the Chief Minister with a copy of their catalogue titled "Where The Wonderful Every Day Starts".
The Telangana government promised to support IKEA India's investment by appointing the Commissioner of Industries as a single contact point for the company to ensure a speedy, transparent process for all applications, permissions and licenses.
Industries & Mines Minister T Harish Rao, Principal Secretary to CM S Narsing Rao and Special Chief Secretary (Industries) Pradeep Chandra, along with Juvencio Maeztu, CEO IKEA India; Preet Dhupar, Chief Finance Officer, IKEA; and Neetu Kapasi, Country Manager, IKEA; were present when the MOU was signed and exchanged. (INN)