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)

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)

Next Story
Infrastructure Transport

RAHSTA 2026 to Host Certified Highway Construction Masterclass

RAHSTA 2026 will organise the Certified Highway Construction Masterclass, a specialised two-day corporate training programme for highway construction professionals, on July 8–9, 2026, at the Jio World Convention Centre.The Masterclass will be delivered by RASTA – Center for Road Technology and supported by Construction World and FIRST Construction Council.Designed as an industry-led refresher programme, the Masterclass aims to help engineering and project teams stay updated with the latest advancements in highway construction, pavement technologies, sustainable materials, intelligent compa..

Next Story
Infrastructure Urban

Grand Mercure Mysuru Turns 10; BHVL to Invest Rs 1,000 Crore in Karnataka

Brigade Hotel Ventures Limited (BHVL) has marked the 10th anniversary of its flagship property, Grand Mercure Mysuru, by announcing a major investment plan of around Rs 1,000 crore in Karnataka over the next five years. The company said the investment will be directed towards new hospitality projects as well as modernisation of existing assets, aligning with the evolving demand for experiential tourism.The announcement comes as BHVL reiterated its focus on strengthening Mysuru’s position as a prominent global tourism destination by supporting the local micro-economy and adopting sustainable ..

Next Story
Infrastructure Urban

Ottobock and Celcius Set Up Prosthetics Warehouse in India

Celcius Logistics, a domestic third-party logistics (3PL) company specialising in end-to-end cold-chain solutions, has partnered with Ottobock India, the Indian arm of Germany-based Ottobock, to establish a dedicated prosthetics warehouse and logistics distribution hub in India. As part of the collaboration, a technology-enabled facility has been launched in Thane to streamline storage and nationwide movement of prosthetic and assistive devices.The dedicated warehouse is expected to strengthen the medical supply chain by reducing turnaround time and improving access to prosthetic products acro..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement