IKEA India CEO to meet DIPP Secy, to discuss e-commerce

Swedish furniture retail major IKEA's India Chief Executive Officer Juvencio Maeztu will meet DIPP Secretary Amitabh Kant on Wednesday to discuss opportunities in Indian e-commerce business and issues related to sourcing.

According to sources, IKEA is keen to participate in the fast growing e-commerce medium in India, which has seen furniture retail portals such as urbanladder.Com and pepperfry.Com gaining prominence.

"The meeting between Kant and Maeztu will discuss its 'make more in India' initiative of the company to increase sourcing from India as the company wants to produce maximum products in India," a source said.

Moreover, the source said they would also discuss on the e-commerce, although at present the Indian government prohibits companies with FDI from selling directly to consumers through online portals but are allowed to engage only in business to business transactions.

IKEA, which had announced plans to invest Rs 12,500 crore in India to set up 25 stores over the next decade, is working on setting up its stores in cities such as Mumbai, Delhi, Hyderabad and Bangalore in the initial phase.

Last September, the world's largest furniture retailer announced a new initiative 'Make More in India' as it plans to double its sourcing from the country to about 630 million euro by 2020.

IKEA has around 50 suppliers in India with 45,000 direct employees and about 400,000 people in its extended supply chain.