Lulu Hypermarket to screen, select MSPO-certified companies to enter UAE

By Nurul Hanis Izmir

KUALA LUMPUR, March 17 (Bernama) -- Conglomerate Lulu Group International will select a number of Malaysian Sustainable Palm Oil (MSPO)-certified companies to help expand their market in the United Arab Emirates (UAE) as well as penetrate other countries including India.

This follows the Memorandum of Understanding signed between the Malaysian Palm Oil Council (MPOC) and Lulu Group during the recent World Expo 2020 in Dubai and the Trade and Investment Mission led by Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali last year.

“Out of the 43 palm oil-based companies showcasing their products today, Lulu, which operates a chain of hypermarkets and retail companies, will select some companies that are MSPO-certified and export-ready, producing products ranging from cooking oil, cosmetics, beverages, frozen food, pharmaceuticals, and confectionery,” MPOC chief executive officer (CEO) Wan Aishah Wan Hamid told Bernama today.

The selected companies will be in addition to the six local manufacturers currently supplying to Lulu Hypermarket in Silicon Oasis in Dubai under MPOC’s ‘Malaysia Palm Oil Full of Goodness’ consumer campaign from February to April 2022.

Together with the Malaysia External Trade Development Corporation (MATRADE), MPOC today organised a sourcing event for palm oil-based products.

“We believe that this partnership can help expand their presence, promote and sell our local brands in the international market via Lulu’s chain of hypermarkets in the UAE.

“This is part of MPOC’s ongoing global initiatives to promote and spread awareness on the goodness and benefits of Malaysian palm oil to the consumers,” Wan Aishah said, adding the council was also looking to work with other hypermarket chains in the region to broaden the market of more Malaysian palm oil-based manufacturers globally.

She said this was the continuation of the council's export initiative, with more hypermarkets and business outlets in the region opening more doors for Malaysia’s palm oil and palm oil-based products.

“Being one of the major producers and exporters of palm oil globally, we are meeting the rising global needs for oils and fats and helping to ensure food security in the world,” she said.

Meanwhile, MATRADE CEO Mohd Mustafa Abdul Aziz said the UAE is an important market for Malaysia in West Asia.

“Aside from being Malaysia’s primary commercial partner, the country serves as an entry point and gateway to the Middle East and Northern Africa (MENA) region due to its strategic geographical location, coupled with a strong economic foundation.

“In 2021, Malaysia’s total trade with the UAE increased by 7.9 per cent from the previous year, which was contributed by a 24.7 per cent increase in total export valued at RM10.59 billion (US$2.83 billion)”, he said.

Last year, the West Asia region imported 1.85 million tonnes of Malaysian palm oil, up 9.2 per cent compared with 2020.

Countries such as Turkey, Iran, Saudi Arabia, and the UAE accounted for 84 per cent of total Malaysian palm oil exports to West Asia.

According to market research, the UAE palm oil market is expected to reach 400,000 tonnes by 2025, and MPOC is set to capitalise on this pent-up demand by collaborating with government authorities and trade bodies in the emirates to provide new market opportunities to Malaysian brands through production and distribution partnerships with companies in the UAE.

Once the selection is finalised, it would take between four and six weeks for the companies to enter Lulu Hypermarket.

Meanwhile, Lulu Group regional manager Shihab Yousaf said the company is searching for interesting products to promote.

“There are some Malaysian brands that are already available in the hypermarket where we first started purchasing in small quantities...but now we are importing 20 containers a year.

“So there are huge opportunities,” he said.

Shihab said besides being MSPO-certified, the companies may also need to redesign their product packaging, especially for the small and medium enterprises (SMEs), to make them more attractive and outstanding.

Lulu Group is an Indian multinational conglomerate which operates 224 retail stores in 22 countries worldwide.

-- BERNAMA