IKEA's Rs 2K-cr vote for K'taka

Swedish furniture giant IKEA on Thursday committed an investment to the tune of Rs 2,000 crore in Karnataka. IKEA, which is yet to open its first store in India, has decided to explore different geographies around Karnataka to set up four outlets.

Speaking to Deccan Herald, Minister for Large and Medium Industries in Karnataka, R V Deshpande, said that apart from IKEA, several other industry majors have committed over Rs 1,000 worth of investment in a day, when the state held ‘Invest Karnataka 2015’ programme here.

“We have got a good response. Industries are very jubilant about putting money in Karnataka,” Deshpande said.

IKEA India Chief Executive Officer Juvencio Maeztu had said on Wednesday that the company was contemplating setting up its first store either in Karnataka or Hyderabad. It also had Delhi NCR and Maharashtra as possible choice for making a debut.

Additional Chief Secretary of Industries in Karnataka, K Ratna Prabha, however, confirmed that IKEA has signed a Memorandum of Understanding with the state to open its first four establishments in Karnataka.

She said that IKEA is exploring geographies in the state, which could be Mysuru or Davangere and two other places.

IKEA has already started hiring people for its upcoming stores in India. The first store could come up in early 2017.

On multinationals like Bosch complaining about delay in approvals and bureaucratic red tape, Deshpande said, “It was a problem of the past. Bosch has just started its new unit in Karnataka and also promised more investments.”

Fully-furnished investments

IKEA commits investments of Rs 2,000 cr in Karnataka
Plans four outlets in the state
Other majors have committed Rs 1,000 cr investments
State government says other MNCs enthusiastic as well