TATA Group’s agri-input arm, Rallis India Ltd, has entered into an agreement with Swedish furniture retailing giant IKEA to transfer its leasehold right over a piece of land in Mumbai for Rs 214 crore. Rallis India is a subsidiary of Tata Chemicals with business presence in the farm essentials vertical.
“The company today signed an agreement for assignment of its leasehold rights in respect of the its leasehold land at MIDC Industrial area, Turbhe, Navi Mumbai to IKEA India Pvt Ltd,” Rallis India said in a filing to the BSE.
On the size of the agreement, Rallis said “consideration of Rs 213.93 crore is payable by IKEA to the company for assignment of its leasehold rights.”
The transaction is subject to IKEA getting all required approval from regulatory authorities, including approval from Maharashtra Industrial Development Corporation for the assignment of the leasehold rights as well as payment of such charges as may be applicable for obtaining the approvals.
IKEA, the world’s largest furniture maker, which received Government approval in 2013 for its Rs 10,500 crore proposal to open retail stores under 100 per cent FDI, plans to open 25 stores by 2025 in nine Indian cities.
Last year, IKEA had bought a 13-acre plot in Hyderabad for its maiden outlet in the country, even as it scouts for more sites in Delhi-NCR, Mumbai and Bengaluru. The store, spread across 4 lakh square feet, will open open in 2017.