HOW IKEA’S INVESTMENT WILL COMPARE TO ’S If FDI multi-brand is approved

IKEA WALMART „ Investment: ^1.5 billion „ (Multi-brand projection (~10,500 crore) in 15 to once FDI is allowed) 20 years. Initial „ Investment by foreign Investment: ^600 million, majors like Walmart, later ^900 million and will be at „ Store rollout: 25 in all. 2 to 3 initially, 10 in least five to six times that of IKEA. So, if IKEA 10 years, another 15 in next 10 years brings in ~10,500 crore in 15 to 20 years, „ Sourcing: $450 million (~2475 crore) worth of Walmart may invest ~63,000 crore in the sourcing from India in 2011. Wants to same period. increase it to $1 billion (~5500 crore) by 2016 „ Organised (read FDI in multi-brand) is and $2 billion (~11,000 crore) by 2020. meant to generate 3 million jobs over a „ Generated 240,000 (including indirect period of 5 years in India. employment) jobs in the 20 years that it has Source: Industry estimates been sourcing from this country. Expected to double to 480,000 by 2020 when retail stores BRIC BY BRIC: IKEA’S PROGRESS are set up. Source: Company IN AND RUSSIA z China z Russia IKEA'S STARS FOR SALES AND SOURCING Country Sales Purchase No. of 14 (% of the total) (% of total) 10 Germany 15 4 Stores USA 11 - mega stores 10 - 1 st Italy 7 8 Store 1998 2000 6 5 Investment China - 22 Poland - 18 Over ^3 billion for both Russia and China Source: IKEA proposal to Department of Industrial Policy and Production Source: IKEA

CASH & CARRY'S IMPACT IN INDIA Company Annual Revenue Number First Investments ~ crore of Stores Store ~ crore Walmart JV with Bharti 1,900 17 2009 1500 Metro Cash & Carry Over 1,500 11 2003 1600 Carrefour 182 2 2010 150-200 Revenue is as of calendar year 2011; total investment so far calculated from the per store cost, size of the stores, their location and other spends like training. Source: Industry estimates, registrar of companies, companies