India expects to double sales in India
February 11th, 2011
India’s overall sales revenue in 2010 was approximately USD 370 billion and it forecasts salesfigures will will grow to USD 680 billion by 2014 according to Business Monitor International, a London research firm.
The Swedish home affordable stylist retailer Ikea earned next to nothing in terms of money in India as Indian government would not lift the caps or limits on foreign direct investment. Plans to open stores across the country was scrapped
The newly appointed IKEA chief executive Mikael Ohlsson mentioned at a conference that he is keen to do business in India and is planning to increase the amount of goods purchased in India in the next four years to a staggering 1.2 – 1.4 Billion USD .
This new initiative will give Ikea chief executive hopes to enter the retail market however foreign investors require partnership deals to a maximum of 49% with local companies to be able to open store throughout India. For Ikea it is a requirement where local companies may find hard to accept due to the fact that it may take years to get back money from their investment.
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