The Indian Government Friday approved the proposal of Ingka Holdings B.V of Netherlands to set up its brand, "IKEA" in India.
"The Cabinet Committee on Economic Affairs today gave its approval
to the proposal of M/s Ingka Holding B.V. Netherlands, (for FDI in single brand
retail trading of products under the brand “IKEA”), as recommended by the
Foreign Investment Promotion Board (FIPB)." said an official statement.
Last year the norms for foreign investment were relaxed, which allowed 100% FDI in single brand retail.
"The approval would result in FDI inflows amounting to
Rs.10,500 crore approximately into the country." said the statement.
INGKA Holding is not an independent company, but is wholly
owned by the Stichting Ingka Foundation, which Kamprad established in 1982 in
the Netherlands as a tax-exempt, not-for-profit foundation.
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