Lulu makes $82m investment in UK's East India Co

UAE-based supermarket chain Lulu Group has bought a 10 per cent stake in UK-based trading firm The East India Company and a 40 per cent stake in its fine foods subsidiary for around $82 million in total.

The new investment will enable the fine foods unit to expand its store network in Europe, the Far East and prepare for a launch in the United States, Yusuff Ali, managing director of Lulu Group, said in a statement late on Wednesday.

The statement didn't disclose the size of the stakes nor the price. However, a spokesman of Lulu told Reuters the Abu Dhabi-headquartered firm is investing approximately $82 million in two phases for the stakes it is buying.

The East India Company Fine Foods sells luxury foods including tea and chocolate and has four stores in the UK and three in the Middle East. It also distributes through retailers in 16 countries.

Lulu Group, known for its chain of supermarkets and hypermarkets, has operations in 31 countries and reported turnover in excess of $5 billion last year.

It joins Mahindra Group as an investor in The East India Company. The Indian conglomerate first bought into the firm in 2010 and made a further investment in 2013.

In May, Lulu announced expansion in Malaysia with plans to open six new halal-only hypermarkets with an investment of $200 million.

 

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