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(Excl Ventures News.)IKEA will set up its first retail outlet facility in India, at Hyderabad. It has offered to buy 12.35 acres of land at a rate of Rs.19.21 per Acre from the Telangana State Industrial Infrastructure Corporation (TSIIC). The land parcel is located beside Old Mumbai Highway, under Raidurg. The land is part of the Hyderabad Knowledge City
At a time when companies are seeking land from the government at
subsidised rates, Ikea’s decision to purchase land at market rates has
surprised the Telangana state government and its officials.
The
government is upbeat about this development and says that this is proof
of the demand for Hyderabad and its realty sector from across the globe.
Ikea India, a subsidiary of Swedish furniture retailers Ikea AB, had
signed a memorandum of understanding with the Telangana government in
September last year to set up its first store in India in Hyderabad with
an investment of Rs 500 crore.
Chief Minister K. Chandrasekhar Rao had appointed the commissioner of
industries as a single contact point to ensure a speedy, transparent
process for all applications, permissions and licences, which encouraged
Ikea to speed up its operations.
The company had sought 50,000
sq. metres of land for the purpose and the government had directed the
Telangana State Industrial Infrastructure Corporation (TSIIC) to
identify suitable land. The company selected land in Hyderabad Knowledge
City, which falls under Raidurg limits. Chief Executive Officer of IKEA India Juvencio Maeztu and CFO Preet
Dhupar wrote to the government recently with their consent to purchase
the land.
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