KOCHI: The Lulu Group, known globally for its sprawling hypermarkets and luxury malls, is steadily expanding its footprint beyond traditional retail and now stands Tall in IT.
“Watching the Kerala-based business groups slowly diversify away into newer areas is interesting. Almost all the leading jewellery groups headquarted in Kerala have entered property development though they are yet to establish themselves as reputed propery brands,” a top banker based in Dubai told businessbenchmark.news.
Lulu Group is already active in the financial services sector, offering money exchange, remittance, forex, and NBFC lending operations, though not in a big way.
With recent investments in IT infrastructure, food processing, private label manufacturing (private labeling), and even brand-building through sport, the group appears to be shaping itself into a broader, more diversified enterprise.
More, the group has entered the hospitality sector and has acquired hotels and other assets overseas and has already set its eyes on building that portfolio.
The most prominent example of the new push is the Rs1,500 crore IT Twin Towers project, inaugurated on June 28 by Kerala Chief Minister Pinarayi Vijayan at SmartCity Kochi. Standing 152 metres tall, the 30-floor twin towers are now the tallest IT structures in South India.
With a built-up area of 3.5 million sq. ft., including 2.5 million sq. ft. of leasable space, the facility is expected to host over 30,000 professionals, especially in technology and AI-driven sectors.
This is not Lulu’s first brush with tech infrastructure. The group already operates Cyber Towers 1 and 2 in Kochi’s Infopark, where nearly 13,800 professionals are currently employed.
These earlier ventures gave the group valuable experience in managing tech spaces, laying the groundwork for bigger bets like the Twin Towers.
“The retail space is becoming increasingly crowded, and the Lulu model has started to feel the pressure from rising competition that sometimes leads to price undercutting,” said a retail expert based in Dubai.
Expanding back-end and brand
Lulu has also been steadily growing its presence in food processing and exports. The group has set up facilities in India to process and export meat and seafood to the GCC, catering to the region’s demand for quality and halal-certified products.
Kerala, with its strong marine economy and skilled manpower, has become an important base for these activities.
Private labels
At the retail end, Lulu has been strengthening its private label portfolio. A wide range of products, especially condiments, pulses, and ready-to-cook items, now carry the Lulu branding in its hypermarkets across India and the Middle East.
Currently, private-labeled products cater to more than 30 per cent of Lulu hypermarkets’ food products and this strategy helps the group improve margins and control quality across the supply chain.
Among the lesser-publicised efforts is a house brand named Ikon, originally introduced as a label for electronics and home appliances. Though it has largely remained a quiet in-house offering so far, there are indications that Lulu may be considering a fresh strategy for Ikon – possibly through relaunches or wider distribution.
Stepping into football?
Separately, there are reports that Lulu Group has decided to sponsor an overseas football club. While th development and details remain unconfirmed, the move suggests an interest in associating with global sporting platforms – potentially to strengthen its branding among younger and international audiences. Whether this turns into a long-term engagement or a one-off marketing push remains to be seen.
A controlled, calculated expansion
Lulu Group’s diversification has been low-profile but deliberate. Instead of splashy announcements, the group is building quietly across sectors that align with its core strengths – real estate, consumption, supply chains, and now, digital infrastructure.
Chairman Yusuff Ali’s long-term strategy appears focused on adding value at every step of the retail and service journey – whether by owning the brand, the logistics, or even the office spaces that power the digital economy.
As Kerala aspires to become a digital and investment-friendly hub, Lulu’s growing footprint across these sectors may well define a new phase in the state’s private sector-led economic transformation.
