IKEA nails down India strategy with women

The world's largest furniture retailer, IKEA, has laid out its plans for women's employment and empowerment as part of a broader India strategy. IKEA Foundation, the philanthropic arm of the Swedish firm, committed €16 million to a threeyear programme which will provide employment and entrepreneurship opportunities to 1 million underprivileged women in focus areas of Karnataka, Maharashtra, Telangana and the National Capital Region (NCR). The programme will be implemented by the United Nations Development Programme (UNDP), Xyntéo and India Development Foundation (IDF). IKEA Foundation CEO Per Heggenes said: “We believe that women can be the most important catalysts for change in their children's lives as well as in society more generally. “By empowering women, we can improve children's health, education and future and that's good for everyone in India.” IKEA Foundation works through selected partners in India since 2000 and has contributed €168 million to programmes targeting children and women in 19 states. Globally, the foundation has made grants totalling €420 million since 2010. The latest programme in India will address the demand and supply side of women's employment by securing commitments from businesses in identifying employment and entrepreneurship opportunities, mobilising women to participate in skills and training courses, and supporting the development of training curricula relevant to aspirations of women and business needs. IKEA had entered India as far back as 28 years ago to source material for its famous flat-pack furniture range around the world. Changes to India's foreign direct investment (FDI) rules allowing 100 per cent FDI in single-brand stores marked a turning point for the giant, which is now all set to finally open its first stores in India by 2017. It has ear-marked $1.6 billion for as many as 25 stand-alone stores in the country and even has its very own “Make More in India” campaign to tap into local skill and talent. IKEA Foundation's latest announcement would tie into this long-term cost-cutting strategy of sourcing even more than the minimum 30 per cent stipulated under the FDI norms.