• Sweden edition
 
Ikea puts India expansion plans on ice

Ikea puts India expansion plans on ice

Published: 23 Jan 2012 14:14 GMT+01:00
Updated: 23 Jan 2012 14:14 GMT+01:00

Speaking with the Financial Times (FT) newspaper, Ikea CEO Mikael Ohlsson said that rules stipulating that single-brand retailers source 30 percent of their goods from local companies remained a stumbling block to Ikea's plans for expanding into India.

“We need to see what [the rules] will mean for us,” Ohlsson told FT.

“We are patient because the conditions need to be right. In this sector, when everything seems to be okay, then we will be in.”

Nevertheless, Ohlsson said a recent change allowing foreign ownership of single-brand retailers was “a very positive change”.

Back in 2009, Ikea cited a rule preventing stores being 100 percent foreign owned as the primary reason for the company putting off plans to open stores in India.

Regulations at the time capped foreign investment in single-brand retailers at 51 percent.

Earlier this month, however, the Indian government agreed to allow foreign companies to own 100 percent of single-brand retailers.

Despite the move, Ikea's Ohlsson remained cautious about when the Swedish retailer may eventually open outlets in India.

“We have always been cautious. Now we will take a step-by-step investment in existing stores,” he told FT.

According to the newspaper, Ikea plans to source €1 billion of its global product range from India within three years, doubling the current amount.

Last week, Ikea reported record profits due in part to fast growing sales in China and Russia.

Currently, Ikea operates furniture stores in 26 countries around the world.

Related links:

The Local/dl (news@thelocal.se)

Your comments about this article

15:05 January 23, 2012 by Puffin
Well here are counties of Sweden that they might consider expanding into first

- Dalarna for example!
15:07 January 23, 2012 by cupidcub
Go to Bangladesh! They will not disappoint you.
17:11 January 23, 2012 by Fernandis
Bangladesh----they need food not IKEA.
18:05 January 23, 2012 by Dazzler
Hey Puffin...Borlange will be getting an Ikea this year,if I remember what the wife told me, she works as a store designer for Ikea.
18:38 January 23, 2012 by Munmun30
IKEA is not sure about entering India with the 30% sourcing restriction, is because they are now manufacturing almost everything in China. The 30% restriction is very good, 'coz it will force companies to invest in India, build up manufacturing units, bring in international standards.

Of course IKEA does not want this, so that they can just dump all they get manufactured in China into India.
20:21 January 23, 2012 by gabeltoon
Why is it that everything we use in the western world is made in CHINA or INDIA.???
16:06 February 7, 2012 by Navras
India should only those companies to invest,do business in india ;who want to invest and buy from local supplier.

If they want to follow Indian rules,they are invited!
Today's headlines
Opinion
'Why were we kept in the dark for years?'
The submarine hunt is now in it's sixth day. Photo: TT

'Why were we kept in the dark for years?'

Military expert Johanne Hildebrandt tells The Local that the biggest question in the Stockholm submarine hunt hasn't been answered yet - why don't we know more about the "other operations" from the last few years? READ  

The Local List
Eight things to love about renting in Sweden
Apartments in Sweden are compact. Photo: Shutterstock

Eight things to love about renting in Sweden

A housing crisis means that short-term sublets are the norm in major cities and rent regulation rules are frequently flouted. But this week, The Local's decided to look on the bright side of renting an apartment in Sweden. READ  

Business & Money
Nordea banks big third-quarter profit gain
Nordea's Chief Executive Christian Clausen. Photo: TT

Nordea banks big third-quarter profit gain

Swedish bank Nordea announced on Wednesday a sharp rise in third quarter profits despite the economic slowdown and major outlays for an IT overhaul. READ  

National
Knutby priest faces early release from prison
Knutby in eastern Sweden, the scene of the murder. Photo: TT

Knutby priest faces early release from prison

A former priest in eastern Sweden who was sentenced to life in prison for organizing the murder of his wife has had his sentence reduced. READ  

Opinion
'Sweden will see Russia as a threat again'

'Sweden will see Russia as a threat again'

The Local speaks to one of Europe's leading security experts about why social media meant the Swedish military couldn't keep their 'submarine' search a secret and how she believes the country will ramp up its security against Russia. READ  

Interview
'Swedes are funnier than they think'
Comedian Al Pitcher has launched his new tour. Photo: www.alpitcher.com

'Swedes are funnier than they think'

New Zealand-born Al Pitcher launched his new comedy show in Stockholm this week. There wasn't a dull moment as The Local phoned up the man who has become one of Sweden's hottest comedians, while he took an eventful stroll in the capital. READ  

National
Stockholm suicide bomb investigation closes
The suicide bombing took place in 2010. Photo: TT

Stockholm suicide bomb investigation closes

Sweden's Security Service (Säpo) has announced that it will stop its core investigation into a suicide bombing in Stockholm four years ago. READ  

Stockholm 'sub hunt'
Military heads into 'new phase' in sub search
The search for the missing 'submarine' is now in its sixth day. Photo: TT

Military heads into 'new phase' in sub search

A press conference on the search for a suspected foreign vessel in Swedish waters revealed that the Armed Forces would be heading into a "new phase" on Wednesday, although it remained unclear what that might involve. READ  

Lifestyle
Vasa ship cannon blasted in Sweden
The bronze replica cannon. Photo: Beth Dacey.

Vasa ship cannon blasted in Sweden

A replica of one of the cannons present on Stockholm's iconic Vasa warship when it sank in 1628 is being tested for the first time in central Sweden. READ  

Health
Swedish farmers contracted swine flu
Swine flu can spread between pigs and humans. Photo: TT

Swedish farmers contracted swine flu

A human strain of the swine flu virus normally only found in pigs was discovered in Sweden earlier this year, the country's Public Health Agency has revealed. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Get 20% off unique Swedish homeware
Blog updates

21 October

Denna & den här (The Swedish Teacher) »

"?Denna? or ?den hr?? Swedish language students often ask question about different pronouns. One pronoun that especially..." READ »

 

19 October

Getting it (Blogweiser) »

"Follow Joel Sherwood on FB Few watch baseball in Sweden. This is excellent when your team loses..." READ »

 
 
 
National
Dentist gives free care to Roma beggars
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
Gallery
People-watching: October 19th
TT
Society
QUIZ: How good is your Swedish?
Lifestyle
What's on in Sweden: October 17th - 24th
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
What's on in Sweden: October 10th - 17th
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Society
My Swedish Career: A French fashionista in Sweden
Society
Swede's anti-bully Facebook tale goes viral
Society
Have you seen Sweden's viral subway cancer campaign?
National
Isis: Swedes linked to Turkish prisoner swap
National
Should Swedes be banned from buying sex abroad?
Gallery
Fredrik Reinfeldt's leaving presents
National
Five Swedish TV shows you shouldn't miss
Gallery
A tool belt, a casserole, and a book. Fredrik Reinfeldt's parliament gifts
TT
Lifestyle
Top five winter festivals in Sweden
TT
National
Sami reindeer herders win mine reprieve
Gallery
Property of the Week: Gamla Enskede
Sponsored Article
How to catch the first lobster of the year
Politics
Ten new minister faces you should know
Tech
First womb transplant baby in world born in Sweden
Gallery
People-watching: October 5th
National
What's on in Sweden
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

1,007
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN