Abu Dhabi-based LuLu International Group has announced that it will launch its first hypermarket in Malaysia, in the capital city of Kuala Lampur. The hypermarket will be operated under a joint venture with the country’s Federal Land Development Authority (FELDA), a statement said.
Malaysia’s deputy prime minister Tan Sri Muhyiddin Yassin said that the retailer will open five other hypermarkets across Malaysia over the next few years.
He added that the group has agreed to invest $200 million on its hypermarkets across Malaysia.
“They will also help market more Malaysian products at their hypermarkets, including those produced by our small-and medium-sized industries and FELDA,” said Yassin.
“It is, indeed, a good opportunity for us as Lulu International is the biggest operator of hypermarkets chain in the region with an annual turnover of more than $5 billion.”
LuLu group has also agreed to sign contract farming deals with local farmers and entrepreneurs to supply foodstuff to their hypermarkets across the Middle East.
“They are interested to buy in bulk highlands vegetables and we may promote the produce from Cameron Highlands (Pahang) and Kundasang (Sabah),” said Yassin.
He said that Malaysia’s Federal Agricultural Marketing Authority (FAMA) would help identify and promote local fruits and vegetables while Malaysia Airlines would be asked to provide competitive freight services to transport the perishable items to the Middle East.
Lulu Group founder Yusuff Ali M.A said that he is positive about the firm’s entry into the Malaysian market.
LuLu group has around 110 hypermarkets in the Middle East along with one in the Southern Indian state of Kerala.
The retail chain has also opened two new stores in the UAE in 2014. It opened its largest hypermarket in Abu Dhabi and has launched a new store in Sharjah this year.
LuLu Group was named the fastest growing retailers in the world, according to Deloitte. The retailer averaged compound annual growth rate of more than 25 per cent between 2007 and 2012 while its revenues exceeded $4.5 billion in 2012.
The company has also outlined aggressive expansion plans to enter new markets which include Iraq, Indonesia, Algeria, Morocco and Libya.