ASSIGNMENT

ENTREPRENEURSHIP DEVELOPMENT &

PROJECT MANAGEMENT

NAME OF TOPIC: LULU Mall

DATE OF SUBMISSION: 29-09-2018
GROUP No.: 5
GROUP MEMBERS

 Aneena.KP

 Hamna.PM

 Jasna.K

 KavyaLakshmi

 Muhammed Naseem TK

 Thushara
INTRODUCTION

Kozhikode is the coastal city in the south Indian State of Kerala. The
business and economy centers around this port town, Kozhikode, have a
variety of traditional and modern business enterprises.

Kozhikode was the first city to have multiplex shopping mall in Kerala.
However, as the time passed, several new shopping malls have sprung
up in this city at different locations. These malls have standardized the
shopping pattern in this city by promoting shopping at one place. These
shopping malls have also promoted the brands of several countries along
with local handicraft in Kozhikode. Further, areas like Arayidathupalam
and Mavoor Road witness the concentration of popular malls in
Kozhikode. Apart from these established malls, there are several other
malls that are to be established at different important locations like
Thondayad Bypass, Mankavu Bye Pass, Mavoor Road, Swapna Nagari
and Nadakkavu in this city. The names of such malls are MERCATO
mall, Lulu mall, Mall of Joy, Confident Group mall, Grand Hi Street
Mall, ACE Mall, Hilite Mall and Space mall.

Mankavu is a suburb of Kozhikode, in Kerala, India. It is known as the

site of the Zamorin's kovilakam and it is called Mankavu Padinhare
Kovilakam. Mankavu derives its name from the Zamorin's Mango
Orchard that was in the area some historic records says that earlier was
known as "Manavedan kavu" and got shortened into "Mankave

The Cabinet has decided to give away 19 cents of poramboke land at

Mankavu in Kozhikode to Lulu Group to construct a shopping mall,
despite opposition from Revenue and Law Departments.In exchange for
the land, the mall owners will have to hand over 26.19 cents of land
including a 204 square feet concrete building near Ollur temple in the
district to the government.
CHOICE OF MALL
The concept of malls in Kerala is not different as almost all of them have
two or more anchor stores. Malls are where retail shopping is combined
with entertainment. Malls offer a plethora of attractions—be it
international brand products, food and beverages, entertainment quarter,
everything in a mall is more glitzy and glamorous. People often go to
malls for leisure time entertainment rather than need driven. Since there
is a wide variety of products that vary in price and quality, malls are
highly populated by both the middle class and the upper class. In Kerala
the middle class is fast growing with higher discretionary income.
Youngsters are willing to pay money for luxury and entertainment. This
has helped in the growth of malls in Kerala

"Lulu mall provides an unprecedented opportunity for Malayalis to have

an international shopping experience. People coming from abroad can
easily relate with the international standards provided by the mall”N B
Swaraj,Media Co-Ordinator, Lulu Group.
FACILITIES
 ATM

 Ambulance

 Baby Room

 Baggage Counter

 Bank

 Disabled-Friendly Service

 Escalators

 Fire Exit

 First Aid

 Information Centre

 Lifts

 Lost & Found

 Money Exchange Centre

 Pharmacy

 Prayer Room

 Special Events Information

 Travel & Holidays Services

 Anchor stores & Mini departmental stores

 LuLu Hypermarket, on the ground floor is the largest hypermarket

in India, covering an area of 2 lakh sq. ft.

 The other anchor stores include Lulu Fashion Store, Lulu Connect,
Lulu Celebrate, PVR Cinemas and Sparkys.

 The mini departmental stores at the mall include Westside and

Marks & Spencer.

 Multiplex, the mall features a 71,000 square feet (6,600 m2), 9

screen PVR Cinemas multiplex on the second floor, with exclusive
entry elevators from outside.

 Leisure zone, the third floor has a leisure zone which includes an
indoor climbing wall, ice skating rink, 5D Cinema, arcade gaming
zone, rides, party hall and a 12 lane bowling alley.

 Five-Star Hotel, adjacent to the shopping mall is a Marriott Hotel.

The hotel stands at a height of 84 meters and has a Helipad.

 Parking space that can accommodate 3500 vehicles

SOURCE OF FUND
Funds invested in Indian mall projects come from different sources in
different varieties. The Indian model of financing is characterized by
selling of mall space, rotation of funds and piece-meal ownership of the
mall by different stakeholders. Mall projects are sold to recover the
investments, and returns are invested in the next project. This tendency
also has its roots in economic characteristics such as interest rates and
capital availability. Developed countries with low interest rates and easy
availability of capital are different from countries such as India where
rate of capital formation is low and demand for capital from different
sectors of the economy is tremendous, which pushes interest rates to
higher levels. This makes investors impatient for the immediate recover
of their money. Rotation of capital among different projects becomes a
vital parameter for overall profitability over a period of time.

Sources of finance may be categorized into the two broad areas of

private and public funds.

1. Private funds: Contributions from promoters may come as private

debt or private equity. Sixty per cent of financing in Indian projects
comes from capital contributed by the promoters from their personal
kitty along with debt taken from financial institutions (private debt).

2. Public funds: Public funds may be routed to these projects through

two channels: public debt and public equity. The public debt market in
India, which comprises Commercial Mortgage Backed Securities and
corporate bonds, is still in its nascent stage, as can be seen by Indian
structured securitization products such as Residential Mortgage Backed
Securities, which have just begun operations. The contribution of public
equity is also insignificant. Public equity may come through Initial
Public Offers (IPOs) in the stock market, Real Estate Investment Trusts
(REITs) or REMFs

Lulu group receive funds from the following sources:

1. Private creditors who extend loans to developers in expectation of

interest.

2. Investors who buy mall space in expectation of rents promised or

guaranteed by the mall developer.

3. Speculators who book or purchase mall space in expectation of

reselling it for profit.
LAUNCH
It was on 8th May 2018 Malayali business tycoon MA. Yusuff Ali
announced Rs 1000 crore investment in Kozhikode to set up an
international convention centre cum shopping mall and a global hotel,
which would provide jobs for 3000 people.

It is said that Yusuff Ali, the 19th richest Indian as per Forbes, said the
work on the mega project will commence within three months, and he
hoped to open the convention centre-shopping mall-hotel within 28
months. The decision came after a request by Chief Minister Pinarayi
Vijayan after the Lulu Group skipped the Kozhikode investment while
mentioning its forthcoming projects in the state during the inauguration
of Lulu Group's Bolgatty International Convention Centre in Kochi.
CONCLUSION
LuLu Group International commenced its operations as a family
business venture. The Group headquartered in Abu Dhabi has grown into
an international group with operations spread over three continents.
Group’s flagship retail chain of LuLu Hypermarkets and Supermarkets is
currently rated as one of the major players in the Middle East retail
sector. Apart from the hypermarkets, supermarkets and department
stores, the group also owns several shopping malls, viz, Khalidiyah
Mall, Al Raha Mall, Al Wahda Mall, Mushriff Mall, Madinat Zayed
Mall, Mazyad Mall, Ramli Mall, RAK Mall, etc. LuLu International
Shopping Mall in Kochi, Kerala was opened on 10 March 2013. It is the
group’s first retail venture in India and currently the largest shopping
mall in India. The Group has a vast organizational structure of over
40,000 employees, representing 37 different nationalities, out of which
more than 25,000 are Indians. Retail business is the mainstay of the
Group with operations in major Middle East and African countries like
UAE, Oman, Qatar, Kuwait, etc. having Retail Sourcing and
manufacturing bases located in Far East, India, Africa and Guangzhou in
China.