Centre rejects IKEA bid - Deccan Chronicle

New Delhi: Swedish furniture major IKEA will not be able to retail food items from its stores in India, the commerce minister told the Parliament. The decision assumes significance as the Swedish retailer had got clearance in January from the Foreign Investment Promotion Board (FIPB) to open cafeterias in its proposed single brand stores in the country. "The proposal has been recommended by FIPB to the extent that IKEA can have a restaurant or cafe in accordance with their global model but cannot engage in retailing of food items," said commerce minister Anand Sharma in a written reply in Parliament. He further added: "Accordingly, the following condition has been proposed: Food and beverages to be sold within IKEA restaurant/cafe located in the IKEA retail store. No food items shall be retailed off the shelf in any other part of the retail store." Earlier, while approving its investment proposal, FIPB, had struck down IKEA's plans to set up its famous cafes in the stores. It had also barred it from selling items such as home and office-use products, textiles, apparel and fabric, electronic items, toys, books, and lifestyle and travel-related items. After this, IKEA wrote to the government to allow it to retail its entire range of products in India and run in-store restaurants, as it does in every country where it has a store. With the government keen to attract FDI into the country, IKEA was finally allowed to open cafeterias in its stores in India. The Cabinet Committee on Economic Affairs, however, is yet to approve IKEA's Rs 10,500 crore FDI proposal. The minister said that some foreign companies had requested for permission to sell food items as part of their proposal on FDI in single brand retail trading. "Marks & Spencer sought approval to sell chocolates, confectionery etc. The proposal was rejected as retailing of food items is not permitted in the policy on FDI in single brand retail," he added. Swedish retailer won't get all No food items shall be retailed off the shelf in any other part of the IKEA retail store, said commerce minister Anand Sharma Swedish major can have a restaurant or cafe in accordance with their global model via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGQ2KWqN8qCWc-oKMquIH4SsoYZsA&url=http://www.deccanchronicle.com/130423/news-businesstech/article/centre-rejects-ikea-bid

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