Swedish home furnishing major IKEA has proposed an investment to the tune of Rs. 10,500 crore for its plans to set up 25 stores in India under the single brand retail segment in the market.

India union Commerce and Industry Ministry said in a statement that the IKEA Group is planning to invest in single brand retail business model in the country, which will be operated by a 100 per cent subsidiary. The proposal from IKEA is the largest investment in the single-brand retailing ever.

The government had allowed foreign investment in single brand retail in January this year. IKEA, which is the manufacturer and seller of home and office furnishing products, has already filed an application with the government through its advisors in the country, Titus and Co. Advocates.

The proposal needs an approval from the Cabinet Committee on Economic Affairs (CCEA) as it involves an investment of more than Rs. 1,200 crore. As per the plans, the company will invest Rs. 4,200 crore to set up 10 stores in the country in the first stage. The remaining Rs. 6,300 crore will be used to set up 15 more stores.

The stores across the country will offer products including furniture, blankets, kitchen utensils, bathroom fittings, electrical equipment, tableware, cooking range, toys, leather articles, cosmetics, life style items, consumer electronics and gadgets.