New Delhi, Jan 22: Swedish homewares company Ikea is withholding its entry into India in spite of New Delhi's move to open its market to foreign retailers as the company accelerates its expansion in other Brics countries, reports Financial Times.
Mikael Ohlsson, chief executive, told the Financial Times that India's requirements that single-brand retailers source 30 per cent of their goods from local small and medium-sized companies was an obstacle to its investment that needed reviewing.
Ohlsson said the outright ownership of operations granted to foreign single-brand retailers earlier this month was “a very positive change”.
But he warned that the conditions applied to local sourcing were “concerning” and more easily met by food retailers than single-brand companies with established, global product ranges.
