Companies & Sectors
IKEA insists on approval for its entire range of products

“The IKEA Group must have the ability to retail its entire range of products in India as is being done globally in every country, where IKEA stores are located,” a company spokeswoman said

New Delhi: Swedish furniture retailer IKEA said it wants the government to allow it to “retail its entire range of products”, including opening of cafes in its stores in India, in the wake of FIPB approving only Rs4,200 crore investment out of a total of a proposed Rs10,500 crore, reports PTI.

 

“The IKEA Group must have the ability to retail its entire range of products in India as is being done globally in every country, where IKEA stores are located. This is as per the IKEA concept,” a company spokeswoman told PTI.

 

She said the IKEA Group has clarified to the Indian government on the categories of products that it can sell here based on its global concept and range.

 

“It is not the intention of IKEA Group to seek a general or broad approval for a wide variety of products. We are true to our application that we submitted in June 2012 and we have not submitted a fresh proposal,” the spokeswoman added.

 

In that application the company had proposed to invest Rs10,500 crore over a period of time by set up 10 furnishing and homeware stores as well as allied infrastructure over 10 years in India. Subsequently, it plans to open 15 more stores.

 

The FIPB had, however, in its 20th November meeting cleared investment of only Rs4,200 crore by IKEA and forwarded the proposal to Cabinet Committee on Economic Affairs (CCEA) for consideration as proposals of FDI over Rs1,200 crore requires CCEA nod.

 

“The IKEA Group is confident that the Indian government will support IKEA’s application as per the IKEA concept and IKEA respects the Indian government's efforts in this process,” she said, adding the group is now waiting for the approval from the CCEA.

 

Government sources had said IKEA has approached FIPB again seeking a review of its earlier application so that it is allowed to open cafeteria at its proposed single brand retail stores in the country.

 

“IKEA has again sent its application for review, seeking permission to let it open cafeteria at least,” an official source has recently said.

 

 The IKEA spokeswoman said opening of the food joints inside its stores is a part of its global concept.

 

“We expect to have IKEA restaurant and cafe inside the IKEA stores in India as every other store worldwide. The IKEA cafe/restaurant is a mandatory and an integral part of the IKEA concept and offer to our customers,” she said.

 

The restaurants and cafes will only be located inside the stores and the company does not have any intention of setting up independent standalone restaurants.

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Intend to continue operations beyond 18 Jan 2013: SSTL

TRAI had asked telecom operators, who have lost their licences, to inform existing subscribers by 27th December if they are discontinuing service in circles where they don't hold spectrum to operate beyond 18 January 2013

New Delhi: Sistema Shyam Teleservices (SSTL), whose permits have been cancelled by the Supreme Court, informed customers of its intention to continue operations beyond 18 January 2013, reports PTI.

 

It said the company is taking further steps to ensure continued service in India.

 

“MTS wishes to inform millions of its customers that being fully committed to its customers and the investments it has made in India, it intends to continue its operations beyond 18 January  2013,” SSTL, which operates under MTS brand name, said in message to its customers.

 

SSTL licences for Rajasthan circle are not impacted by the judgement and can continue to operate, it said. The company had over 1.6 crore customers by the end of October 2012.

 

SSTL was one of the companies whose 21 licences were cancelled by the Supreme Court on 2nd February in the 2G spectrum case, and are valid only till 18th January next year.

 

“...in this context the company has taken and is taking all the possible steps, to ensure the continuity of its services beyond 18 January 2013,” SSTL added.

 

SSTL had filed curative petition before the apex court seeking reinstatement of its licences in May, and it is yet to come for hearing.

 

Russian conglomerate Sistema JSFC, which holds 56.68% stake in the company, has already issued notice to Indian government for resolving the SSTL licence issue.

 

In a recent communication to Indian government, Sistema has warned to seek “billions of dollars” in damages from India if licence cancellation issue of SSTL is not resolved in time.

 

“...MTS is hopeful that the Supreme Court will take up its curative petition before 18 January 2013,” SSTL said in the message.

 

The message to customers from the company comes in the backdrop of direction by sector regulator TRAI asking telecom operators, who have lost their licences, to inform existing subscribers by 27th December if they are discontinuing service in circles where they don't hold spectrum to operate beyond 18 January 2013.

 

SSTL in a statement said: “The message to this effect has been sent out by SMS to millions of its customers. In addition, the company has also hosted the same messaging on its website.”

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Moneylife Foundation conducts yet another successful event on Wills and Nominations

Moneylife Foundation caps off an eventful year with a seminar on Wills and Nominations where...

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