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IKEA inks MoU with Gujarat to open stores, invest up to Rs 3,000 cr

Press Trust of India  |  New Delhi 

Swedish today said it has signed a memorandum of understanding (MoU) with the government to set up its stores in the state with an expected investment of up to Rs 3,000 crore in the long term.

IKEA, which received government approval in 2013 for its Rs 10,500-crore proposal to open under 100 per cent FDI, has earlier signed MoUs with Karnataka, Telangana, Maharashtra, and to open

The company plans to open 25 stores by 2025 in nine Indian cities.

The MoU with government stands for mutual commitment from both parties and intends to provide clarity on working methods and ensure a legally and ethically compliant, corruption free business environment, said in a statement.

"is a prioritised state for due to its open progressive policies and positive investment climate," IKEA Country Property & said.

IKEA will soon set up its and other touch points in Gujarat to bring good quality and affordable home furnishings for the many people in Gujarat, he added.

and are the priority cities for now and IKEA has started scouting for suitable real estate, the company said.

The approximate investment in the long term will be around Rs 2,000-3,000 crore. This will generate around 2,000 direct and 3,000 indirect employment, it added.

Gujarat said, "IKEA will positively contribute to creating employment, growth of manufacturing sector, sharing best practices, in skill development and in the overall growth of the "

Das also assured support to the company for timely implementation of projects and enable smooth business operations.

IKEA had initially stated that it would open its first store in in in the second half of 2017, which is now expected to be during the summer this year.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 19:55 IST