March 22, 2010
Ikea dismantles plans for stores in India
Published: 11 Jun 09 12:59 CET
Online: http://www.thelocal.se/20014/20090611/
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Swedish furniture retailer Ikea has scuttled plans to open stores in India due to regulations preventing foreigners from owning single brand retailers, the company announced on Thursday.
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"We have been having problems with the regulations in India so we took the decision to postpone our expansion because we want to have full ownership of our retail operations," Lindgren told AFP, denying that the global economic slowdown had influenced the move.
Indian regulations cap foreign investment in single-brand retailers at 51 percent.
Ikea said India remained "a long term potential market" and would continue to lobby for the existing regulations to be changed.
"If and when changes are made to the FDI (foreign direct investment) regulations allowing 100 percent ownership of single brand retailers then Ikea will reconsider its position," the company said in a statement.
The company's comments came after India's Economic Times reported earlier on Thursday that the Swedish company's planned $1 billion entry into the Indian market had been put on hold after talks with the government broke down.
Ikea announced in 2006 that it wanted to open its first store in India by 2011.
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If they want it, fair enough give them it. As Euroepan goods are obviously not welcome in India, ban all Indian goods in the European market.
The reversal in GDP that would occur due to that, will wake them up.
people get a grip.......like IKEA is some kind of shining example of corporate ethics......"slavery conditions"? "economic warfare?" "ban all Indian goods in the EU"?.........listen to yourselves.......
Learn some history about Indian business practices since the mid 1980s and you might understand why they're cautious.