Swedish furniture retailer IKEA is expected to open its first outlet in India at Hyderabad and Telangana government has promised to fast-track all necessary clearances as the new state seeks to attract investments.
After a meeting with top IKEA executives, Chief Minister K Chandrashekar Rao was quoted as saying all necessary clearances will be given through a single window to expedite the process of opening the store in the city.
A high-level team from the company represented by Juvenico Maeztu, Ikea Indian arm Chief Executive Officer, and Preet Dhupar, Chief Financial Officer, met Rao at Secretariat here today, a state government press release said.
"He (Maeztu) explained in detail the genesis and growth of the company. The CEO suggested entering into an MoU with Telangana Government to serve as an umbrella for broad understanding," it said.
The Sweden-headquartered company, founded in 1943, is one of the world's largest retailers in furniture, household goods and textiles.
It was one of the first companies in India to be allowed 100 per cent FDI in retail. In May last year, the government allowed the Swedish furniture major to invest Rs 10,500 crore for setting up single brand retail stores.
"The decision by IKEA to set up its first store in Hyderabad will place the city on the international map of IKEA stores.
"IKEA retail outlets have a standard design and each location entails an investment of USD 100 million (Rs 550-600 crore). In addition, the backward integration of supplier linkages will have tremendous economic impact to the State," the release said.
During the meeting, women entrepreneur groups, bamboo and wood artisans, carpet makers were identified as potential suppliers to IKEA's store, it added.