UAE-based retail giant Lulu Group confirms new malls in Bengaluru, Chennai
It will maintain same intensity on investments in Gulf, says hypermarkets owner
Dubai: Abu Dhabi headquartered Lulu Group has confirmed plans to build shopping malls in Bengaluru and Chennai as part of a major expansion of its interests in India. This is on top of the mall projects the Group had announced for three other Indian cities — Lucknow, Vishakapatanam and Thiruvananthapuram.
It currently operates a mall in Kochi, rated as the largest in southern India.
“We have acquired an ongoing mall development In Bengaluru and will build our own in Chennai,” said Yousuf Ali, Chairman and Managing Director. “Mall projects give us the best platform to keep expanding our India portfolio — there’s so much still to do in India’s retail space.
“It was easier to acquire an ongoing project in Bengaluru than go searching for a wide expanse of land. The price was right and that’s why we closed it at the first opportunity.”
The Bengaluru and Chennai projects are expected to be operational by end of this year.
The Group intends to maintain a similar investment momentum in UAE and Saudi Arabia, its core markets, this year. A new one opened Wednesday in Sharjah’s Rolla neighbourhood. It generated revenues of $7 billion (Dh25.7 billion) last year, of which nearly 60 per cent was generated from all of its diverse operations in the UAE. This includes managing shopping malls in Abu Dhabi as well build new ones in Dubai — at Silicon Oasis — and Sharjah.
Saudi Arabia provided about 10 per cent, while India now accounts for 5 per cent of the top-line number.
“From the outside, one would think we have already covered just about every corner in the UAE with our properties,” said Ali. “Somehow, I don’t yet see us as having reached that point — even in Dubai, there are possibilities in some areas that could generate a lot of future traffic.”
As per announced plans, 12 new locations will open in the UAE this year, on top of the 87 it currently operates. A typical hypermarket costs about Dh60 million to Dh70 million to set up, and that is excluding the cost of land.
The UAE and Saudi Arabia will see a bulk of the commitments,” said Ali. “I don’t see a soft economy as being a reason not to. Saudi Arabia will see more hypermarkets and at some point and we might expand the logistics hub in the kingdom.” (Apart from its supermarkets, the Group operates 10 Aramco commissaries and has an agreement with the Saudi Arabian National Guard to open two shopping centres and seven supermarkets in Dammam and Al Ahsa.) Outside of the Middle East and India, the Far East will be the next big territory for Lulu to try and prise open. Two hypermarkets have opened in Jakarta and also in Malaysia.
“Through our sourcing and distribution interests in the Far East, we have a fair bit of idea on the retail sector as well,” said Ali. “Whenever and wherever we can spot a good location for a hypermarket, we will be there. We are not limited to these two markets either — Vietnam is a strong possibility.”
New hotel at the old Scotland Yard inches closer to opening date
The Lulu Group keeps adding to its hotel portfolio, confirming that a 153-room property will open later this year at the original Great Scotland Yard building in London. The renovation, which cost £75 million (Dh364 million), is being completed in three years.
Staying a night at the hotel certainly doesn’t come on a budget — it could reach up to 10,000 euros (Dh41,415). The Hyatt Group will manage the property.