“GST is an important policy for us and is extremely beneficial for the consumers as it will reduce the price for the consumer” he said.
NEW DELHI: The Goods and Services Tax (GST) has been on the government’s agenda for many years now and it is time to move forward with the legislation rather than delaying it any further, said Juvencio Maeztu, India CEO of Swedish furniture retail major Ikea.
“We have to take GST out of the political discussion and it has to happen,” said Maeztu. “The policy has been agreed on most of the points and many people are supporting the policy. So, it is better to move on with the policy and implement it,” he said on the sidelines of India Economic Convention.
“GST is an important policy for us and is extremely beneficial for the consumers as it will reduce the price for the consumer, which in turn would be good for the economy and the companies operating in it,” he said.
According to Maeztu, Ikea is working on long-term production and sustainable model for raw material sourcing in India.
“There is no shortcut for sustainable long-term sourcing. Sourcing takes time. We need to build technology and we need to build sustainable way to source raw material. We have very high demands when it comes to the way we do sourcing and this is what exactly we are working on in India,” said Maeztu.
He said Ikea has a big agenda to develop new materials with new technologies in India, not only for the consumption in domestic market but also to export the products world over.
Ikea, in collaboration with Invest India, recently organized its fourth ‘Make More in India’ seminar in Warsaw, Poland, to persuade its suppliers based in Poland and Central Europe to explore setting up large-scale manufacturing units in India, said Maeztu, adding the company plans to organize more such seminars in order to find new suppliers for its growth agenda in India.
He also confirmed that the company is looking to move into new categories.
“We are moving into new categories like carbon steel, plastics, ceramics, lighting and particle board, which will take few years. We need to develop new materials which are highly sustainable and that will take time. We are looking out for available and sustainable raw materials.”
Ikea recently acquired 13 acres near the IT hub of Hyderabad for setting up a retail store. The company is looking to purchase lands in other states too. “Currently, we have one piece of land in Hyderabad but we are close to finalizing new deals in more states,” said Maeztu without giving out the names of the states.
The company had earlier said that it will invest Rs 10,500 crore in the country to open 25 stores over a decade.