Swedish furniture retailer Ikea has decided to open its first Indian store in Hyderabad.
The initiative has been welcomed by K. Chandrashekar Rao, chief minister of Telangana. He assured all necessary clearances through a single window to expedite opening of the store.
Ikea CEO Juvenico Maeztu and CFO Preet Dhupar met the chief minister on July 9. During discussions with Ikea, women entrepreneur groups, bamboo and wood artisans and carpet makers of Warangal have been identified as potential suppliers.
The chief minister told the delegation that steps were being initiated for formulating an integrated policy for industrial growth.
Ikea is one of the world’s largest international furniture, household goods and textiles retail companies. It was one of the first companies in India to be allowed 100% FDI in retail, according to a statement from the chief minister’s office.
Ikea retail outlets have a standard design and each location entails an investment of $100 million. In addition, the backward integration of supplier linkages will have tremendous economic impact to the state.