IKEA CEO meets KCR, to set up store in Hyderabad

Hyderabad, Sept 24 (INN): The IKEA India, the iconic Swedish furniture retailer in the country, represented by its CEO Juvencio Maeztu, signed an MOU with Pradeep Chandra, Special Chief Secretary (Industries), on Wednesday morning in presence of Chief Minister K Chandrashekar Rao for establishing its store in the State.

IKEA is one of the World's largest and recognizable international furniture, household goods and textiles retail company. IKEA 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. The decision by IKEA 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.500-600 crores). In addition, the backward integration of supplier linkages will have tremendous economic impact to the State.

Speaking on the occasion, the Chief Minister said that during his visit to Singapore he has seen the IKEA stores there and is very much impressed. 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 State.

The Chief Minister said that the Government of Telangana would extend all possible support and also will help the IKEA treating it as an Industry for Government of India incentives.

In view of the future expansion of Hyderabad city all around the government would also guide the IKEA organization in all possible ways. Responding to a request made by IKEA CEO, the Chief Minister has agreed to accommodate their stores near one of the Metro retail terminals.

IKEA considering Telangana as one of the primary states for opening of its stores in India has come forward to sign the MOU with the government of Telangana. It is impressed with the Telangana open investment climate in its commercial and industrial fields, as well as, the potential for expanding IKEA India's supply chain and network.

Ikea has recognized that Telangana as a government is committed to innovation by investing in skills and rapidly improving technology. IKEA India believes that both IKEA and State of Telangana will be of mutual benefit to each other.

The potential investment in each store is estimated to be Rs.500 crore. IKEA India also intends to explore the potential to increase its supply chain and network of long term suppliers.

The government of Telangana recognizes IKEA as one of the Europe's largest companies with strong credibility in doing business with a stringent code of conduct, respect for human rights, compliance with relevant legal and ethical standards and zero tolerance to unethical practices and corruption.

The representatives of IKEA presented the Chief Minister with a copy of their catalogue titled 'Where the wonderful every day starts'. Furniture for sleeping, bathroom, organizing rooms, relaxing, kitchen, products etc form part of the catalogue.

The Telangana government has promised to support IKEA India'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 & Mines Minister T Harish Rao, Principal Secretary to CM S Narsing Rao, Special Chief Secretary (Industries) Pradeep Chandra, along with Juvencio Maeztu, CEO IKEA India, Preet Dhupar, Chief Finance Officer, IKEA, Neetu Kapasi, Country Manager IKEA were present when the MOU was signed and exchanged.