Swedish furniture retailer Ikea has signed up with the Telangana Government to set up a retail store in Hyderabad.

The MoU for establishing its store in the State was signed by CEO Juvencio Maeztu and Pradeep Chandra, Special Chief Secretary Industries, Government of Telangana, today in the presence of Chief Minister K. Chandrashekar Rao.

Ikea is one of the world's largest international furniture, household goods and textiles retail companies headquartered in Sweden. It was one of the first companies in India to be allowed 100 per cent FDI in retail. It plans to open a number of stores in India with the first store in Hyderabad.

The Ikea retail outlets have a standard design and each location entails an investment of $100 million (Rs 500-600 crore). It also promotes backward integration of supplier linkages, seen to have tremendous economic impact to the State.

Assuring all necessary support to Ikea, the Chief Minister suggested to the Ikea representatives that they tie up with artisans in Telangana such as Nirmal, Silver Filigri, Pembarti and so on for their furniture as add-on things.

He felt that the pearls of Hyderabad should also find their place in these stores, a statement from the Chief Minister’s Office said.

The State may consider it as an industry to extend Government incentives.

Responding to their request, the Chief Minister has agreed to accommodate their stores near one of the Metro retail terminals.

Ikea India also intends to explore the potential to increase its supply chain and network of long-term suppliers. The Ikea team presented the Chief Minister with a copy of their catalogue titled 'Where the wonderful every day starts'.

The Telangana Government has made the Commissioner of Industries a single contact point to ensure a speedy, transparent process for all applications, permissions and licences.