Lulu Group, a retail giant, has announced a 2,000 crore investment in a shopping complex near Ahmedabad, Gujarat. This investment will be made as part of the UAE-based company’s aspirations to develop its business in India.
The Lulu Group said on Saturday that it has signed a MoU with the Gujarat government. In India, the business already operates three shopping complexes and plans to open two more by March of next year.
“The Lulu Group will invest ₹2,000 crore in the state of Gujarat to set up a modern shopping mall,” the company said.
The investment was announced during a meeting between Gujarat Chief Minister Bhupendra Patel and Lulu group Chairman and Managing Director Yusuff Ali MA in Dubai.
Patel is in the state on an official visit to promote the upcoming Vibrant Gujarat Global Summit (VGGS) and to seek foreign direct investment (FDI).
According to its deal with the Gujarat government, the group would build a shopping complex between Ahmedabad and Gandhinagar, creating approximately 5,000 employment. The construction is scheduled to begin in the first quarter of 2022 and will take 30 months to finish.
“Government of Gujarat will facilitate Lulu Group with all necessary assistance and clearances and also depute a senior IAS official to follow up the procedures,” the statement said.
In addition to the mall, the Lulu Group will establish food processing and logistics centres in Baroda and Surat for exports as part of the state’s second phase of investment.
“I welcome Ali’s promise to invest in Gujarat. The government will make every effort to ensure that land and any other assistance is provided to the group so that they can begin work,” said CM Patel.
On the investment plan, Yusuff Ali MA said: “Gujarat holds a very special place in my heart, this is where I first learnt the basics of business as my father had family business in Ahmedabad. So I feel very excited to invest in Gujarat and hope we can expand further in this vibrant state.”
Lulu operates around 220 hypermarkets and shopping malls across the Middle East, Egypt, Indonesia, Malaysia, and India. Globally, the company employs around 57,000 employees.
In Gulf Cooperation Council countries, Lulu hypermarkets and department shops represent 32% of the retail market.
In October 2021, the Lulu company inaugurated its third shopping mall in Bengaluru, India.
According to Ali, the company has committed an investment of approximately Rs. 4,500 crore for the development of five retail malls in India in the first phase of its expansion in the nation. Three of the five malls have already opened their doors in Kochi, Thrissur, and Bengaluru.
The Global Mall at Rajajinagar in Bengaluru, sprawled across 8 lakh square feet, is not owned by the Lulu group but it will manage and operate the property.
The Lulu group announced on Saturday that its latest mall in Kerala’s capital Thiruvananthapuram will open next week, while the Lucknow Lulu Mall is planned to open in March 2022.