The Swedish company clarified that no old furniture or products collected from customers will be sold in IKEA retail stores or sold by IKEA Group for profits
New Delhi: Old furniture collected from Indian consumers in exchange for new ones will not be re-sold in the market, Swedish retail major IKEA has informed the government, reports PTI.
The company, which plans to invest Rs10,500 crore to set up 25 single brand retail stores in the country, in its final application has said that the facility of collection or purchase of old furniture is for the convenience of only those customers who no longer need their old furniture.
"It is clarified that no old furniture/products collected will be sold from the IKEA retail stores or sold by IKEA Group for profits," it said.
It said that the old items collected or purchased by the company are either donated to needy families through charitable organisations or donated to third party small businesses on an "as is where is" basis.
"The third parties can repair and add value and sell such furniture in the market by themselves and keep the earnings for themselves," it added.
The Scandinavian firm said that if the old products are totally unusable, they would be disassembled and recycled with the lowest environmental impact.
The IKEA's clarification was on a government's query on the nature and intent of activities involving collection or purchase of old furniture.
Further, the Department of Industrial Policy and Promotion (DIPP), has not yet approved the application.
DIPP, which is under the commerce and industry ministry, deals with foreign direct investment (FDI) related matters.
A senior official said that the department is examining the application and would soon sent it to the Foreign Investment Promotion Board (FIPB).
FIPB, under the Finance Ministry, will give the final approval to IKEAs application.
Infosys' investments in debt-focussed liquid mutual fund schemes rose sharply in September quarter to Rs4,986 crore from Rs2,161 crore in June quarter
New Delhi: India's most cash-rich IT company Infosys has doubled its investments in liquid debt mutual funds (MFs) to Rs4,986 crore -- the highest in nearly three years, reports PTI.
At the same time, Infosys' bank deposits remained almost stagnant at Rs14,569 crore as on 30 September 2012, compared to Rs15,267 crore at the end of June, as per the company's latest quarterly financial accounts.
Infosys' investments in debt-focussed liquid mutual fund schemes rose sharply in the July-September quarter to Rs4,986 crore from Rs2,161 crore at the end of previous three-month period.
Large corporates use the liquid MFs to park cash for short-term and also earn good returns, while waiting to deploy the funds for future projects.
At nearly Rs5,000 crore now, Infosys' current investment level in liquid mutual funds is the highest for the debt-free firm in as many as 11 quarters. It was only in December 2009 that Infosys' exposure to liquid MFs was higher -- Rs5,200 crore, company data shows.
The liquid mutual funds are estimated to have given a three-month return of 2-2.5% in the September quarter, while the average return in the past 12 months has been around 9.7%.
Additionally, Infosys' Rs2,000-crore Lodestone buy-out is slated for closure next week after receiving certain regulatory approvals which could result in some outflows that may be taken care of the liquid MF exposure, analysts say.
Investments in mutual funds formed a significant chunk of the IT major's cash chest, which stood at Rs22,570 crore in the last concluded quarter.
According to company officials, the company's treasury department was able to get a yield of 9.6% on its cash surplus during the just concluded July-September quarter.
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