Ikea to set up shop in Hyderabad.

Swedish furniture retailer Ikea signed an MoU with the Telangana government to open its first outlet in Hyderabad.

The company's retail outlets have a standard design and each location entails an investment of $100 million (around Rs. 610 crore). In addition, the backward integration of supplier linkage will have a positive bearing on local economy, the government said.

Ikea India CEO Juvencio Maeztu met chief minister K Chandrasekhar Rao on this occasion and sought the government's help to get a location near one of the Metro retail stores in the city for their upcoming outlet for which the latter has readily agreed. The government has appointed commissioner of industries as a single contact point to ensure all the necessary clearances for the company’s operations in a speedy and transparent manner.

The chief minister suggested to the company representatives that they should tie up with local artisans hailing from traditional handicraft places like Nirmal and Pembarti in the state and also source the raw material from within the state.

BS