Cabinet approves construction of LuLu Mall in Visakhapatnam

The Lulu Group has shown interest in developing malls across Andhra Pradesh’s major cities, including Amaravati, Tirupati, and Visakhapatnam. This announcement was made by Andhra Pradesh Chief Minister Nara Chandrababu Naidu during a recent cabinet meeting, where he highlighted the group’s renewed commitment to the state. The State Investment Promotion Board of Andhra Pradesh has the green light for the LuLu mall in Visakhapatnam, and the state cabinet also granted its final approval.

Interestingly, this is not the first time Lulu Group has attempted to establish its presence in Visakhapatnam. During Chandrababu Naidu’s tenure from 2014 to 2019, the group was allocated land along the city’s coastline for a mall project. However, a change in government saw the project redirected to Hyderabad. Now, with the coalition government back in power, Lulu Group has agreed to resume its plans in Andhra Pradesh, with plans to establish an 8-screen IMAX and mall in Visakhapatnam.

The revival of discussions took place in September 2024, when Lulu Group’s Managing Director, Yusuffali, met with Naidu to explore fresh investment opportunities. The Chief Minister’s Office (CMO) reported that their talks focused on Lulu’s plans to establish malls, multiplexes, hypermarkets, and invest in the food processing sector across prominent cities like Visakhapatnam, Vijayawada, and Tirupati.

The previous YSRCP government had cancelled Lulu Group’s land allotment in 2019, accusing the earlier TDP administration of irregularities in awarding the land for a world-class convention centre in Visakhapatnam. Lulu had initially planned a Rs 22 billion investment for developing an international convention centre, shopping mall, and five-star hotel, with expectations of generating over 7,000 jobs.

Following the cancellation, the Lulu Group decided not to pursue any further projects in Andhra Pradesh, although their developments continued smoothly in other states like Uttar Pradesh, Telangana, Tamil Nadu, and Kerala. The 13.59-acre plot on Vizag’s beach road, intended for the project, remained unutilized as multiple attempts to auction the land failed. The reserve price of Rs 14.52 billion was considered excessively high by real estate experts, who described the pricing as unrealistic and discouraging for potential buyers.

For five years, the valuable piece of land remained unused, with neither a mall nor a hospitality project taking shape. The lack of successful auctions also meant the government earned no revenue from the property.

Lulu Group’s decision to return to Andhra Pradesh signals a fresh chapter of growth and investment for the state. With planned projects in Vizag, Amaravati, and Tirupati, the group’s presence could boost infrastructure development and create new job opportunities.