Lulu Group aiming to up agri sourcing from India to Rs 15,000 cr in 2 yrs

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UAE-headquartered retailer Lulu Group is looking to increase the quantum of Indian agri procurements to Rs 15,000 crore in the next two years as it expands its network globally, a top company official said on Tuesday.

Its Chairman and Managing Director M A Yusuff Ali told reporters that the company plans to have a special focus on the organic good procurement and sees the value of such goods going up to Rs 2,000 crore in a year.

"About Rs 10,000 crore imports (of agri products) we are doing every year. We are looking to increase it to Rs 15,000 crore within two years because we are also expanding our footprint in many countries," he said.

The imports primarily include commodities such as fruits, vegetables, rice, tea, sugar, spice and millets, he said, pointing out that the produce goes to the Gulf Cooperation Council (GCC) countries and other far-east countries.

Ali said his group has tied up with the Indian government-promoted Agricultural and Processed Food Products Export Development Authority to increase the share of organic product procurements.

The company is looking to import up to Rs 2,000 crore of organic produce from the country in a year initially and take it up to Rs 4,000 crore the next year, he said.

The UAE-based group is looking to tie up with groups of farmer producers in smaller villages as well, he added.

The company is investing Rs 500 crore to set up a logistic hub, including cold storage in Noida, and aims to commission it in the next two-three months.

Similarly, a food plant in Kashmir is also "almost complete" and will be inaugurated in 2-3 months, he said.

Ali declined comment when asked about his views on regulations governing multibrand retail in the country.

Meanwhile, a source in the group said it is looking at Maharashtra's winter capital Nagpur to have a shopping mall.

The group has inaugurated or is in the process of building malls in cities such as Coimbatore, Lucknow, Calicut, Ahmedabad, etc.