Gulf-based LuLu Group returns to Andhra Pradesh despite previous vow
ECONOMY & POLICY

Gulf-based LuLu Group returns to Andhra Pradesh despite previous vow

In a surprising development, Abu Dhabi-based multinational conglomerate LuLu Group International has decided to re-enter Andhra Pradesh, despite earlier pledging never to invest in the state. This decision follows the return of the TDP-led NDA government under Chief Minister N Chandrababu Naidu.

LuLu Group’s Managing Director, Yusuffali, met with Naidu to discuss new investment opportunities in the state. The group had previously exited Andhra Pradesh in 2019 after the Y S Jagan Mohan Reddy-led government cancelled its land allotment in Visakhapatnam.

According to the Chief Minister's Office (CMO), the discussions centred around LuLu’s plans to develop malls, multiplexes, hypermarkets, and invest in the food processing sector across key cities like Visakhapatnam, Vijayawada, and Tirupati. Naidu warmly welcomed Yusuffali back, stating, “I am pleased to welcome the Chairman & MD of LuLu Group International, Mr. Yusuffali, and the Executive Director, Mr. Ashraf Ali MA, back to Andhra Pradesh. We discussed plans for a mall and multiplex in Vizag, a hypermarket and multiplexes in Vijayawada and Tirupati, along with food processing investments. The government will extend full support for these ventures.”

The previous YSRCP government had revoked the land allotment in 2019, accusing the former TDP government of irregularities in awarding land to LuLu Group for a world-class convention centre in Visakhapatnam. At the time, LuLu had planned a Rs 22 billion investment to develop an international convention centre, shopping mall, and five-star hotel, which would have created over 7,000 jobs.

Following the cancellation, LuLu Group had stated that they would not pursue any further investments in Andhra Pradesh, although their projects in other Indian states like Uttar Pradesh, Telangana, Tamil Nadu, and Kerala would continue as planned. The land, spanning 13.59 acres on Vizag’s beach road, remained unused after the cancellation. Attempts to sell the land through open auction, under the supervision of the National Buildings Construction Corporation (NBCC), failed multiple times due to the high reserve price of Rs 14.52 billion.

For five years, the prime land lay unutilised, with neither a mall nor any hospitality project emerging, and the government receiving no revenue from its sale. Real estate experts had criticised the "ultra-premium" pricing, calling it impractical, which led to the lack of bidders during auctions.

With LuLu Group’s return, it appears that Andhra Pradesh could soon see renewed development in Visakhapatnam and other major cities, signalling a new chapter of investment in the region. (Deccan Herald)

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

In a surprising development, Abu Dhabi-based multinational conglomerate LuLu Group International has decided to re-enter Andhra Pradesh, despite earlier pledging never to invest in the state. This decision follows the return of the TDP-led NDA government under Chief Minister N Chandrababu Naidu. LuLu Group’s Managing Director, Yusuffali, met with Naidu to discuss new investment opportunities in the state. The group had previously exited Andhra Pradesh in 2019 after the Y S Jagan Mohan Reddy-led government cancelled its land allotment in Visakhapatnam. According to the Chief Minister's Office (CMO), the discussions centred around LuLu’s plans to develop malls, multiplexes, hypermarkets, and invest in the food processing sector across key cities like Visakhapatnam, Vijayawada, and Tirupati. Naidu warmly welcomed Yusuffali back, stating, “I am pleased to welcome the Chairman & MD of LuLu Group International, Mr. Yusuffali, and the Executive Director, Mr. Ashraf Ali MA, back to Andhra Pradesh. We discussed plans for a mall and multiplex in Vizag, a hypermarket and multiplexes in Vijayawada and Tirupati, along with food processing investments. The government will extend full support for these ventures.” The previous YSRCP government had revoked the land allotment in 2019, accusing the former TDP government of irregularities in awarding land to LuLu Group for a world-class convention centre in Visakhapatnam. At the time, LuLu had planned a Rs 22 billion investment to develop an international convention centre, shopping mall, and five-star hotel, which would have created over 7,000 jobs. Following the cancellation, LuLu Group had stated that they would not pursue any further investments in Andhra Pradesh, although their projects in other Indian states like Uttar Pradesh, Telangana, Tamil Nadu, and Kerala would continue as planned. The land, spanning 13.59 acres on Vizag’s beach road, remained unused after the cancellation. Attempts to sell the land through open auction, under the supervision of the National Buildings Construction Corporation (NBCC), failed multiple times due to the high reserve price of Rs 14.52 billion. For five years, the prime land lay unutilised, with neither a mall nor any hospitality project emerging, and the government receiving no revenue from its sale. Real estate experts had criticised the ultra-premium pricing, calling it impractical, which led to the lack of bidders during auctions. With LuLu Group’s return, it appears that Andhra Pradesh could soon see renewed development in Visakhapatnam and other major cities, signalling a new chapter of investment in the region. (Deccan Herald)

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