Lulu Group Eyes Double Investment in Andhra Pradesh After Jagan Setback

Date: April 06, 2025

Lulu Group Eyes Double Investment in Andhra Pradesh After Jagan Setback

Lulu Group Revives Investment Plans in Andhra Pradesh

Lulu Group International, the global retail giant renowned for its hypermarkets and luxury malls, is making a strong comeback in Andhra Pradesh. The company had previously committed to investing in Visakhapatnam but is now planning a second major investment in Amaravati as well.

This renewed interest comes in the wake of political changes in the state. Under the former YSRCP government led by Y. S. Jagan Mohan Reddy, Lulu’s previously sanctioned project in Visakhapatnam was cancelled in 2019. With the TDP government back in power, these shelved plans have resurfaced, and new investment opportunities are now being pursued.

₹1,500 Crore Projects Lulu Group in Both Vizag and Amaravati

Lulu has already signed an agreement with the Andhra Pradesh government to establish a mall and convention center in Visakhapatnam, investing over ₹1,500 crore. In a recent development, company officials visited Amaravati and were given a tour of the capital region by CRDA (Capital Region Development Authority) officials.

Following discussions between Lulu Group Chairman Yusuff Ali and Chief Minister N. Chandrababu Naidu, the group is now exploring similar infrastructure investments in Amaravati, including:

Hypermarket
Convention Center
Multiplex
IMAX Theater

Another ₹1,500 crore is expected to be allocated for the Amaravati project.

CRDA Highlights Amaravati’s Urban Development Potential

During the site visit, CRDA officials provided Lulu representatives with a detailed overview of Amaravati’s development roadmap, including future urban planning, projected population growth, and infrastructure layout. The potential of Amaravati as a smart capital city reportedly impressed Lulu’s team.

The group is said to be keen on fast-tracking their investment proposal in Amaravati, mirroring the model being used in Visakhapatnam.

Past Setback Reversed Under New Government

Previously, during the TDP government’s 2014–2019 tenure, Lulu Group had been allotted land near RK Beach in Visakhapatnam. That project was shelved by the succeeding YSRCP regime, stalling Lulu’s entry into the Andhra retail and hospitality market.

Now, with political conditions once again favorable. Lulu Group is doubling down on its presence in Andhra Pradesh by reviving and expanding its earlier plans.

Investment Agreements Expected to Finalize Soon

According to sources, the formal agreement for Lulu’s investment in Amaravati is likely to be finalized soon. This dual investment strategy not only signals renewed investor confidence but also highlights the proactive measures taken by the current administration to revitalize Andhra’s urban economy.