NEW DELHI - IKEA received approval from the government of India on Thursday to open 25 stores in the country. The total investment is estimated at $1.95 billion and would make IKEA the biggest retailer in India.
The Swedish furniture retail giant first announced its intention to seek approval from India's federal cabinet committee on economic affairs to enter the Indian market last spring. In late 2011, India amended its law allowing a foreign company to have 100 percent ownership of a single-brand retail venture. In the past, a foreign retailer was limited to up to 51% ownership, according to Dow Jones Newswires.
An IKEA spokesman said IKEA already sources products, including furniture from India, and will look to increase sourcing from current and new suppliers.
IKEA's website lists 43 countries in which it has retail stores, ranging from the United States and Canada, in countries throughout Europe, plus Israel, China Saudi Arabia and more.
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