IKEA expected to get nod for opening cafes today

IKEA expected to get nod for opening cafes todayThe Foreign Investment Promotion Board (FIPB) is reviewing IKEA's request to open cafeterias at its proposed retail stores in India today, Monday, and the Swedish furniture giant is largely expected to get the green signal.

Headed by Economic Affairs Secretary Arvind Mayaram, the FIPB has already cleared Ikea's investment proposals worth Rs 4,200 crore in the single brand retail sector. But the board had not allowed the furniture giant to set up cafeterias as part of its mega stores.

IKEA then requested the Department of Industrial Policy & Promotion (DIPP) to review its case. The DIPP recently forwarded the request to FIPB asking it to review its 20 November decision that granted only part approval to Ikea's investment plan.

Anand Sharma, Union Commerce & Industry Minister, had recently announced that the government had taken a positive view on the furniture giant's proposal.

Batting for the Swedish furniture giant's proposal, Mr, Sharma had said, "The government has taken. note of the representation that Ikea has made in this regard and a favourable view has been taken so that we accept their global model and the process of FIPB's formal approval is currently underway."

After the government allowed 10 per cent foreign direct investment in single brand retail trading, IKEA had announced its plans to invest Rs 10,500 crore in this segment in the current decade.

Ikea currently operates a total of 336 furnishing and homeware stores in as many as 44 countries.