UAE’s LuLu Group investing $100 M in Phl

UAE – based retail giant LuLu Group is investing $100 million for a warehouse facility, agro-industrial activities and to put up supermarket outlets in the country this year.

As LuLu Group wants to make the Philippines one of its sourcing and food processing hubs for its supermarkets, it is also aiming to bring up the value of its total exports from the country to $100 million within two years.

“We earmarked $100 million for the investment,” LuLu Group chairman Yusuff Ali M.A. told reporters during the inauguration of the warehouse of Lulu Group’s Philippine unit MAY Exports Philippines Inc. located at the Calamba Premiere International Park in Laguna yesterday.

He said part of the investment is being used for the warehouse for fruits, vegetables and other commodities from the Philippines to be exported to the group’s more than 150 hypermarkets spread across the Middle East and North Africa, as well as Malaysia and Indonesia.

In addition to the warehouse, he said the investment would also be used by the group to start agro-industrial operations, and open supermarket outlets in the country.

Asked when the group would start agro-industrial activities and open supermarket outlets in the country, he said the decision would all be made within the year.

“It is part of our ongoing strategy to set up our own sourcing and food processing units around the world to ensure uninterrupted supply and maintain competitive pricing by eliminating third parties,” he said.

He said the group decided to enter the Philippines and set up operations in the country due to the availability of fruits, vegetables, frozen food, and other range of commodities such as health and beauty products, garments, and footwear.

For this year, LuLu is targeting to bring $20-to $25million worth of Philippine products to its stores.

Within two years, the group intends to grow Philippine exports to a total value of $100 million.

The group is working with the Philippine Economic Zone Authority (PEZA) to boost exports from the Philippines to its supermarkets.

PEZA director general Charito Plaza said the agency is helping the group identify locations for its agro-industrial operations, which would likely be set up in Mindanao.

She said LuLu’s Philippine unit MAY Exports is registered with the PEZA as a logistics exports enterprise.

As a PEZA-registered firm, she said MAY Exports is entitled to various incentives such as income tax holidays, five percent tax on gross income earned, duty-free importation, and zero value-added tax for local purchases.