BackIkea in talks with authorities to find location for stores
Ikea also said it is primarily focusing on textiles to enable development on the factory floor and optimize production
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New Delhi: As part of its entry plan for India, Swedish furniture maker Inter Ikea Systems B.V. said on Monday it has begun talks with authorities in main cities to get a better understanding of the market.
The company, which has set up a new product development centre in India, also said it is primarily focusing on textiles to enable development on the factory floor and optimize production, while also exploring other materials like wood, metal, plastic and lighting.
“In India, we are currently defining the entry plan for Ikea. Talks have begun with authorities and representatives in the main cities to get a better understanding of the states and also share Ikea’s business model and needs," Ikea said in a statement. Elaborating on its strategy, the company said: “The most important priority is to find the right location for our stores at the right price in major cities, with easy access to public transport (metro) and good road network." It, however, did not specify the cities which the company is exploring at the moment.
In August, Ikea chief executive officer Mikael Ohlsson had informed Union minister for commerce and industry Anand Sharma that the Swedish furniture maker has identified four states—Haryana, Andhra Pradesh, Maharashtra and Karnataka—to set up its stores.
On product development in India, Ikea said it will extend from textiles to other items. “With primary focus on textiles, we will also explore other materials such as wood, metal, plastic, lighting," it said. Ikea said it has been sourcing from India for more than 25 years. “We are focused on finding suppliers with the right competence and strategic fit, at the same time developing and growing existing suppliers," IKEA said. The government on 2 May 2013 approved Ikea’s ₹ 10,500 crore proposal for setting up home furnishing stores in the country. PTI
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