UAE retail group eyes $1.17bn Indian expansion plan

SUPERMARKET PLAN: Emke Group is planning to expand its supermarket network to 100. (Getty Images)

Emke Group, which operates the biggest hypermarket chain in the Middle East under the LuLu and Al Falah brands, is to invest AED4.3 billion ($1.17bn) to expand its network of supermarkets and hypermarkets.

The company is to build 25 new stores to take its total to 100 within the next three years, it was reported on Wednesday.

The firm, which opened its 75th hypermarket this month in Al Ain, serves 350,000 shoppers per day, UAE daily Gulf News reported.

Emke Group managing director Yusuffali MA told the paper his company was entering the lucrative Indian market by developing the biggest shopping mall in Kochi, Kerala, with more than two million square feet of retail area.

According to some industry reports, Emke Group controls about 32.5 percent of the UAE's retail market, followed by French hypermarket chain Carrefour that has a 24 percent share.

The company's total turnover exceeded AED7.6 billion last year, 40 percent of which came from the UAE.

"Despite the global economic crisis, we have witnessed a growth in sales across our network of hypermarkets in the region. This year, we expect our turnover to exceed $2.5 billion up from last year's $2.1 billion ," he told the paper.

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READERS' COMMENTS

Yusuff Ali - Expansion
Posted by CJ, Dubai, UAE on Monday 31 August 2009 at 10:19 UAE time


Full points to Yusuff Ali, a lot of local businesses need to start looking at India, last figures on Indian consumer spending in India was posted at USD400billion. The proximity to this huge market does not require rocket science to strategize and expand into.
Keep up the good work brand LuLu - you will become the Regional Czar what Carrefour and the others Supermarket chains are in the West .

Lulu- the indian tiger
Posted by dinker, Abu dhabi, UAE on Wednesday 26 August 2009 at 20:51 UAE time


Lulu is clearly leading the show due to the availabiltiy of the varieties of indian stuff in their outlets. India being the huge country and with vast diversifications has got different taste across the country. By catering to the indian community and all other nationalites in one umbrella takes them forward leaving a huge gap between the first and the second.

Wish you all the best Lulu and Mr. Yusuf Ali M A

Dinker

Lulu
Posted by JHV, Dxb, uae on Wednesday 26 August 2009 at 19:15 UAE time


I fail to understand that why has carrefour/Futtaim fail to understand Indian specific requirements. Carrefour joints are with better ambience and affluence than the Lulus and are good places for spending time in ambling, window shopping, eating out and buy some of their 'No 1' brand products and ofcourse the mobile counter. But when it comes to serious monthly household shopping nothing beats Lulu. Everything that we as typical Indian house hold family want it is available at Lulu. Eg; at carrefour you want get sumeet, preethi or Usha brands of mixer/blender but all other international brands. The fact is that indian cooking requires special heavy duty, special blades and steel bodied jar and the job that above brand can do for indian cooking can not be done (even half) by moulinex, philips or other international brands. ( eg: coconut chutney. So why is carrefour giving blind eye to such important part of indian requirement and does not keep such stuff with them. UAE shoppers means 35% Indians - so why not pay heed to their requirements?

Good Job
Posted by Raj, Dubai, UAE on Wednesday 26 August 2009 at 15:12 UAE time


Great work. Ur kicking Carefour where it hurts.

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