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
Real Estate

Dharavi Rising

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Real Estate

MLDL Records 20.4% Growth in Pre-Sales

Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of the Mahindra Group, announced its financial results for the quarter ended March 31, 2025. In line with INDAS 115, the company recognises revenues using the completion of contract method. Key highlights FY25: Consolidated sales (Residential and IC&IC) of Rs 32.99 billion. Gross development value (GDV) additions in FY25 were Rs 1.81 trillion compared to Rs 440 billion in FY24 (~4x growth). Residential pre-sales of Rs 28.04 billion in FY25, reflecting 20.4% growth o..

Next Story
Infrastructure Transport

UCSL Delivers India's First Green Cargo Vessel to Norway

In a landmark achievement for Indian shipbuilding and the Atma Nirbhar Bharat initiative, Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Limited (CSL), has delivered the first of six next-generation green cargo vessels to Norway-based Wilson Ship Management AS, Europe’s largest short-sea shipping operator. The 3,800 DWT vessel, named Wilson Eco 1, was handed over during a ceremony at New Mangalore Port. The delivery is part of a Rs 5.06 billion project supported by Norway’s green maritime funding programme, marking India's entry into the European eco-friendly ca..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?