Lulu Group Returns to Andhra Pradesh Under Naidu's Leadership, Signaling Investment Revival

After a turbulent five-year hiatus, the Abu Dhabi-based Lulu Group is set to make a grand comeback to Andhra Pradesh, bringing with it significant investment plans. This turnaround comes in the wake of Chandrababu Naidu’s return to the chief minister's chair, with the state government striving to restore its image as a top destination for investors.

Lulu Group's chairman, Yussuf Ali M.A., recently announced new projects, including a shopping mall with an IMAX multiplex in Visakhapatnam, hypermarkets in Vijayawada and Tirupati, and food processing and logistics centers across the state. This marks a reversal of the group’s decision to pull out of Andhra Pradesh under the previous leadership of Y.S. Jagan Mohan Reddy.

In 2019, the Lulu Group had withdrawn from a major project in Visakhapatnam after the YSRCP government, led by Jagan, revoked land allotments over alleged "non-transparent procedures." This move, part of a broader trend that saw several companies exit the state, had been heavily criticized by Naidu and his Telugu Desam Party (TDP).

With Naidu back in power, the state's new administration is working hard to regain investor trust. TDP general secretary Nara Lokesh had previously alleged that Jagan's leadership had driven businesses away, citing a climate of uncertainty. However, the return of Lulu Group, alongside other key investors, is seen as a sign of confidence in the state’s future under Naidu's leadership.

Denying claims of an unfavorable business environment, senior YSRCP leader Kakani Govardhan Reddy pointed out that Andhra Pradesh consistently topped the Ease of Doing Business rankings under Jagan’s administration, with major investments flowing into sectors like solar power and food processing. However, he admitted that unlike the current administration, Jagan’s government did not seek as much publicity for its achievements.

Now, the hashtag #LuluBackInAP is trending on social media, as Naidu supporters celebrate what they see as the revival of Andhra Pradesh’s investment climate under his leadership.