New Delhi, June 22 (IANS) Sweden-based IKEA, the world's largest furniture maker, will invest around $1.9 billion (Rs.10,500 crore) in opening 25 retail stores in India, Commerce and Industry Minister Anand Sharma said Friday.
IKEA's chief executive officer Mikael Ohlsson confirmed the investment during his meeting with Anand Sharma in St. Petersburg, according to an official statement released after the meeting.
The company plans to invest 600 million euro (Rs.4,200 crore) in the first stage and an additional 900 million euro (Rs.6,300 crore) later, taking total investment to 1.5 billion euro ($1.88 billion or Rs.10, 500 crore).
The money will be used for establishing 25 retail stores in India through a wholly owned subsidiary.
Sharma said IKEA had certain reservations about sourcing norms which were discussed with the officials of India's Department of Industrial Policy and Promotion (DIPP).
"Suitable answers of which were provided leading to the decision to invest," Sharma said in a statement.
Sharma claimed that despite the problems in global economy and recent lowering of the rating outlook, investors' confidence in India remains robust.