Ikea plans to invest Rs 10,500 cr in India

Agencies

Posted: Friday, Jun 22, 2012 at 1735 hrs IST

New Delhi: Sweden-based furniture retailer IKEA has approached the Finance Ministry with a proposal to invest Rs 10,500 crore for setting up of 25 stores in single-brand retail in the country.

The IKEA Group, which sells office and home furniture, proposes to invest 1.5 billion euros (Rs 10,500 crore) through a 100 per cent subsidiary in single brand retail trading in India, sources said.

This would be the largest investment in the single-brand retailing ever since the government has allowed foreign investment in this sector.

The company has filled an application with the Foreign Investment Promotion Board (FIPB) through its adviser Titus and Co Advocates.

According to the proposal, IKEA would be investing 600 million euros (Rs 4,200 crore) to open 10 stores in the first stage. The remaining 900 million euros (Rs 6,300 crore) would used to open 15 more stores.

In January, the government has notified 100 per cent foreign direct investment (FDI) in single-brand

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