Hyderabad: IKEA, a leading Swedish furniture retailer, will set up its first store in India here.
IKEA India on Wednesday signed a Memorandum of Understanding (MoU) with the Telangana government for opening the store.
IKEA retail outlets have a standard design and each location entails an investment of $100 million (Rs.500-600 crore). In addition, the backward integration of supplier linkages will have tremendous economic impact on the state, said a statement from the chief minister`s office.
IKEA India CEO Juvencio Maeztu and Telangana Special Chief Secretary (Industries) Pradeep Chandra signed the MoU in the presence of Chief Minister K. Chandrashekar Rao.
Headquartered in Sweden, IKEA is one of the world`s largest and recognisable international furniture, household goods and textiles retail company.
One of the first companies in India to be allowed 100 percent FDI in retail, IKEA intends to open a number of stores in the country.
The chief minister suggested to the IKEA representatives that they should tie up with artisans in Telangana like Nirmal, Silver Filigri and Pembarti for their furniture as adds on.
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 job opportunities for local artisans.
The chief minister said that whatever IKEA wants to sell should be sourced from the state.
Rao assured that Telangana government will extend all possible support and will help IKEA to be treated as an industry for incentives from the central government.
