ABU DHABI-BASED LuLu Group International said it is making an initial investment of $100 million in the Philippines to set up a retail network and food processing facilities for Halal products for export to the Middle East.
鈥淎t present we鈥檙e thinking to invest a hundred million dollars. Then we will increase (later),鈥 M.A. Yusuff Ali, Chairman and Managing Director of the United Arab Emirates-based retailer, told reporters on Wednesday during the inauguration of its export warehouse at the Calamba Premiere International Park in Laguna.
The initial investment covers the establishment of a retail chain and the setting up of an agro-industrial ecozone for a Halal-food processing facility.
Asked for a timetable, Mr. Yusuff Ali said the company is still working on some details but will make an announcement within the year.
The first completed facility is the new export hub in Laguna, in which it invested $1 million. It will offer storage for products to be exported, such as fruits and vegetables, textiles, garments, furniture and electronics, which will enter the retail group鈥檚 supply chain.
Forbes estimates the Indian-born Mr. Yusuff Ali鈥檚 net worth at $4.1 billion and lists LuLu Group鈥檚 revenue as $7.4 billion, generated by over a hundred stores across the Gulf region.
鈥淭wo years from now, we will increase the export of agricultural products from the Philippines, a great country, for export to our outlets, 151 shopping malls and hypermarkets to $100 million. This is our target,鈥 Mr. Yussuf Ali said.
This year, the group hopes to source $35 million worth of products from the Philipines.
LuLu Group is collaborating with the Department of Agriculture to link the company with cooperatives and farmers.
鈥淲e will not give a chance to middlemen…, we will source directly,鈥 Mr. Yussuf Ali said.
The group鈥檚 Philippine unit, May Exports Philippines, Inc., is registered with the Philippine Economic Zone Authority (PEZA). PEZA has said that the group hopes to lease farmland to supply its hypermarkets abroad.
PEZA Director-General Charito B. Plaza told reporters yesterday in Laguna that the agency has short listed a few sites of about 鈥渢housands of hectares,鈥 though they include ancestral domain lands, raising the possibility of a lengthy permitting process.
The group is considering sourcing fruits and vegetables, from the Davao region and garments and textiles from producers in Metro Manila.
The Lulu Group is also engaged in trading, shipping, IT, travel and tourism, and education. It employs more than 46,000 worldwide. — Janina C. Lim
