London: The East India Company, owned by an Indian-origin entrepreneur, has clinched a lucrative deal with Abu Dhabi based Lulu Group to take the firm on to its next phase of global expansion.
The trading company, which has its roots in the Raj era, was bought by Mumbai-born entrepreneur Sanjiv Mehta in 2005 and launched its first flagship store here in 2010.
“The East India Company was always one which built the footprints of the Empire and later on became the Commonwealth, so we believe that we should invite appropriate stakeholders to join our journey,” company chairman Mehta said in reference to the deal signed here.
As part of the deal, the UAE group has bought 10% stake in the UK-based trading firm and a 40% stake in its fine foods subsidiary for an estimated $82 million.
The Lulu Group, best 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 the Mahindra Group as an investor in the East India Company.
“The East India Company has resonance with customers throughout Asia, the Middle East and America… We see tremendous opportunity in supporting the East India Company’s continued development into a truly global, luxury brand,” said Yusuff Ali, Managing Director of the Lulu Group.
With the latest funds injection, the East India Company plans to expand its store network in Europe, the Far East and prepare for a launch in the US. India is also part of its mega plans, with a luxury project set for launch in 2015.
“Our plans, as far as business in India is concerned, is to start looking at various aspects. We are opening a restaurant and a luxury development project. We will hopefully announce in 2015,” said Mehta, who also credited the new government in India for its business-friendly approach.
“With Modi at its helm, for whom I have huge respect, I definitely have a very strong positive view on the growth of India… Having said that, it is a function of time. While it is on the right path it will take time for India to achieve its truly justified glory,” he added.
The East India Company now has four stores in the UK, three stores in the Middle East, and concession and wholesale distribution through premium retailers in over 16 countries.
The company’s fine food range is predominantly sourced and produced in Britain and is today seen as a fast-growing UK business with plans to increase the overall staff in the UK five-fold over the next three years.
The company’s roots lie in a charter from Queen Elizabeth- I in 1600 which gave it a monopoly on English trade to Asia and in its new avatar the firm claims to capitalise on that same spirit of adventure, curiosity and discovery.