Lulu Group International is deepening its engagement with India as it sharpens its global sourcing and retail strategy amid volatile trade conditions and geopolitical uncertainty. The Abu Dhabi headquartered retail major plans to increase India’s contribution to its overall imports to 35 percent over the next two years, up from the current 26 to 27 percent, according to chairman and managing director M A Yusuff Ali.
The group currently sources goods worth nearly ₹11,000 crore annually from India, with food and agricultural products forming the bulk of imports. Fresh fruits and vegetables, spices, FMCG items and textiles are procured through more than 30 sourcing and food processing centres spread across the country. Ali said India’s scale, competitive pricing and improving quality standards make it a critical pillar of Lulu’s long term supply chain planning, not only for the Gulf markets but also for other international geographies.
Lulu operates over 260 retail stores across the GCC, India, Southeast Asia and parts of Africa. In response to rising input costs, new trade barriers and shipping disruptions, the group has accelerated supplier diversification, strengthened audit processes and worked closely with logistics partners to secure container availability. It is also expanding direct sourcing, private labels and contract farming while investing in cold chain and backend infrastructure to stabilise prices and ensure consistent supply.
As part of its omni channel push, Lulu is preparing to partner with Indian ecommerce platforms and expects to roll out its hypermarket offerings through local online aggregators in the first quarter of 2026. The group already has similar digital tie ups in the Middle East with platforms such as Amazon, Talabat and HungerStation.
Lulu Group, which listed on the Abu Dhabi Securities Exchange in late 2024 and raised $1.72 billion, continues to invest aggressively in India. Its ₹10,000 crore investment plan announced in 2023 remains on track, with spending underway across retail expansion, logistics, food processing and technology. The retailer currently operates malls and hypermarkets in 10 Indian cities, with new projects planned across metros and Tier 2 markets including Ahmedabad, Visakhapatnam, Chennai, Hyderabad and several towns in Kerala.
