Lulu Group to invest Rs7,000 crore in India in hospitality, retail sectors
Lulu Group will invest Rs4,650 crore in Kerala, Rs1,000 crore in Uttar Pradesh and Rs1,410 crore in Telangana in the hospitality and retail sectors
New Delhi: Buoyed by relaxation of foreign direct investment (FDI) norms, non-resident Indian businessman Yusuffali M.A., who heads the Dubai-based retail conglomerate Lulu Group, has announced an investment of over ₹ 7,000 crore in India for setting up shopping malls and hotels.
Ali said his group will invest ₹ 4,650 crore in Kerala, ₹ 1,000 crore in Uttar Pradesh and ₹ 1,410 crore in Telangana in the hospitality and retail sectors.
Complimenting the National Democratic Alliance government for raising the FDI cap for key sectors, Ali estimated that investment to the tune of $150 billion will flow into India’s retail, aviation, tourism and manufacturing sectors from the Gulf countries in the next few years.
He said Prime Minister Narendra Modi’s outreach to a number of Gulf nations coupled with initiatives to attract foreign investment have made India the most talked about FDI destination in the region which is eying to broaden its non-oil investment.
“There will be a tremendous push from Gulf investors into India as they are looking to broaden their non-oil investment," he said.
Ali’s Lulu Group, having an annual turnover of $6.3 billion, has already made major investments in retail, hospitality and food processing sectors in India. Forbes magazine had last year listed Ali, a first generation migrant to the Middle East, as the 30th wealthiest Indian and the 737th richest in the world.
Ali said the company will initially invest ₹ 1,000 crore for setting up a shopping mall and a five-star hotel and convention centre in Lucknow. The site for the project has already been identified and construction work will start by December.
In Telangana, Ali said his group is investing ₹ 500 crore for establishing a food processing plant, while a shopping mall will be set up with an investment of ₹ 900 crore in Hyderabad.
In Kerala, Ali said his group is making an investment of ₹ 4,650 crore in a number of projects. A shopping mall and a five-star hotel with investment of ₹ 1,250 crore is being set up in Thiruvananthapuram, he said, adding another five-star hotel will come up in Kochi at an investment of ₹ 1,600 crore.
Lulu Group is also a setting up an information technology park at Kochi with an investment of ₹ 1,400 crore.
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