IKEA, Carrefour welcome FDI

28 Nov,2011

By Tuhina Anand

 

The Government’s decision to allow FDI in retail has opened up possibilities for international retail giants who till now have been waiting in the sidelines. While Indian politicians are busy either batting for FDI or opposing it vehemently, the international biggies are playing safe and watching their step before making any decision.

 

IKEA, the international home products company that has been clear that it will only enter India when 100% FDI will be allowed now seems to have crossed that hurdle. With Indian government allowing 100% FDI in single brand retail, it clears way for the Swedish furniture giant to make its presence in India.

 

An IKEA spokesperson informed MxM India, “The IKEA Group welcomes the Indian Government’s decision to allow 100 percent Foreign Direct Investment for single brand retailers. We will now over the next few days look into the details of the decision and we expect to present more information shortly about our intention to establish retail operations. India is since long a strong and growing purchase market for IKEA.”

 

IKEA has been looking towards India increasingly over the years to outsource its products including textiles and carpets and the country finds the retailers focus in its social initiatives. Looks like it’s not far when IKEA would announce its plan for India and be present in a market which is seen by many International retailers as crucial because of the changing dynamics and economy of the country. In fact, giants like Walmart is already present but in Cash & Carry business with a partnership with Bharti Enterprises. Tesco has strategic partnership with Tata Trent for back end and supplying for Tata’s Star Bazaar. French retailer Carrefour too has opened last year its cash and carry store in Seelampur area in Delhi.

 

Carrefour’s statement on FDI in India stated, “Carrefour welcomes the Indian Government’s decision to allow up to 51% foreign direct investment in multi-brand retail. This legal evolution should contribute to modernise Indian food supply chain and to fight against food inflation for the benefit of Indian customers. It will also provide farmers and local SMEs with new outcomes and will more generally contribute to India’s economic development. Carrefour will remain attentive to the finalisation of this new regulation and continues the development of its cash and carry operations. Please note that we cannot give you any further elements.”

 

The move is a welcome relief for the international biggies but it now remains to be seen how and when these giants make their entry into the front end of the business in India.

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One response to “IKEA, Carrefour welcome FDI”

  1. Ajit Vadakayil says:

    hi,

    chetan bhagat is the new zionist stooge.

    punch into google search WALMART IS NOT GOOD FOR INDIA-
    VADAKAYIL.

    capt ajit vadakayil

    ..