Japan's Keikaku is ready to expand into India

Muji, which translates as "no-brand quality products," is an established retailer in Japan for basic everyday items at reasonable prices. None of Muji's 7,000 products, including beds, dishes, jackets and notebooks, have a logo or are wrapped in, distinctive packaging. The company operates 440 stores across the US, Europe and Asia.

The current Indian laws permit up to 51% foreign direct investment (FDI) in single brand retail and the company is currently negotiating with a host of Indian players. The move comes a year after the Swedish furniture brand Ikea wound up its office in India since the company didn't want to partner with an Indian retailer and was awaiting the ease of FDI norms to further uncap single brand retail.

Internationally, Muji is compared to Ikea and the US-based retailer Target.

Currently, the furniture retail market is estimated to be around Rs 45,000-crore of which the organised segment is only 9% of the total market. The organised furniture retailers constitute HomeStop, Home Bazaar , Home Town and other players likeFab India, Stanley (high-end), Furniturewalla, Gautier, Style Spa.

Though the official spokesperson of the company couldn't be contacted, sources told FE that a delegation of senior officers had already surveyed the Indian market and were willing to invest a large sum spread over several years since the demographics and the growth in income had shown very promising results.

The government has been mulling to raise the FDI cap in single brand retail to 74% across all sectors unlike its previous approach of relaxing the FDI caps across a few verticals.