Five years after the previous Jagan Mohan Reddy government suddenly cancelled a 13.83-acre land agreement with UAE-based Lulu Group, the Chandrababu Naidu government is set to bring the conglomerate  back to Andhra Pradesh. The projects discussed by the state government and Lulu Group include an “international-standard shopping mall” in Visakhapatnam with 8 IMAX screens and hypermarkets, logistics, and food processing centres in other parts of AP. 

Andhra Pradesh Chief Minister Chandrababu Naidu met a delegation from the Lulu Group led by the Chairman and Managing Director, International Yusuffali MA, and Executive Director Ashraf Ali MA on September 28. 

“We discussed plans for a mall and multiplex in Vizag Hypermarket and multiplexes in Vijayawada and Tirupati, along with investments in the food processing sector across the state. The AP government shall extend every possible cooperation and support,” the CM said in a statement. 

Responding to the CM’s statement, Yusuffali said, “I have 18 long years of brotherly relationship with Naidu, and our discussions were very fruitful. We have decided to start an international-standard shopping mall with an 8-screen IMAX multiplex in Vizag, state-of-the-art hypermarkets in Vijayawada and Tirupati, along with modern food processing and logistic centres in [other parts of] Andhra Pradesh. 

The previous land agreement had been drawn up between the Telugu Desam Party (TDP) and the Lulu Group a month before a change of government in the state in 2019. At the time, Lulu Group had laid the foundation stone for a Rs 2,200-crore project. The project included a mega commercial complex, convention centres and exhibition halls with 7,000 seating capacity, a 5-star hotel with 220 rooms, and other supporting facilities. However, when the YSR Congress Party (YSRCP) came to power a month later, the land allotment was cancelled, alleging that while the market value of the land was Rs 50 crore, it had been given to Lulu Group at a meagre cost of Rs 4 lakh per acre. 

The UAE-base group had denied the allegations, saying that the bidding process for the land had been transparent. The Lulu Group had also said in 2019 that it incurred huge expenses towards initial project development costs, which included appointing “internationally renowned consultants and designing the project by world-class architects.” At the time, Lulu Group’s India director had said that they would not invest in Andhra Pradesh. 

According to TNIE, Chandrababu said after the September 28 meeting that the AP government was prioritising “ease of doing business and speed of doing business.” 

The Lulu Group currently has projects in Uttar Pradesh, Telangana, Tamil Nadu, and Kerala.