Lulu Group Eyes to Partner Indian E-Commerce Platforms by Q1 2026, To Raise Sourcing from India

Abu Dhabi-headquartered Lulu Group is in talks with Indian e-commerce companies to sell hypermarket products online, with a proposed start by the Q1 2026, as per The Economic Times report.  

The group is considering partnerships with existing online platforms to offer grocery and household items. The plan does not involve setting up a separate Lulu-owned e-commerce platform in India. 

India Sourcing to Increase 

MA Yusuff Ali, Chairman and MD, told ET in an interview that, India is expected to contribute a higher share to Lulu’s global sourcing in the next 2 years.  

The group currently imports goods worth about ₹11,000 crore annually from India, which accounts for nearly 26–27% of its total imports.  

This share is planned to increase to 35%, according to MA Yusuff Ali, chairman and managing director of the group. 

Supply Chain Considerations 

The shift towards higher sourcing from India is linked to supply chain planning amid global geopolitical uncertainty. India is being used as a sourcing base not only for the Gulf region but also for Lulu’s other international markets.  

Food products form the largest portion of imports from India, followed by other consumer goods. 

Product Categories and Sourcing Base 

Lulu sources agricultural produce, processed food, FMCG items and textiles from India. These are procured through more than 30 sourcing and food processing centres located across the country.  

The volume of sourcing has increased gradually over recent years as procurement has expanded across categories. 

Physical Retail  

Lulu operates more than 260 retail stores across multiple countries. In India, the group has expanded through malls and hypermarkets in major cities.  

It has also set up sourcing and processing facilities in smaller towns to support both domestic requirements and exports to overseas markets. 

Investment Activity 

The sourcing plans are linked to Lulu Group’s ₹10,000 crore investment programme in India over three years. Investments are being made in retail outlets, logistics, warehousing, food processing and technology systems.  

Several projects under this plan are currently at different stages of execution. 

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Conclusion 

Lulu Group’s plans to explore e-commerce partnerships and increase sourcing from India indicate a continued focus on the country’s role in its supply operations. The proposed changes are for distribution and procurement rather than altering its core retail business. 

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