One Chennai, Many Hotel Markets

One Chennai, Many Hotel Markets

By Hariharan U

Published on October 3, 2026

For decades, Chennai's hotel market was largely defined by a familiar geography. The central business district and the airport corridor captured much of the city's corporate and visitor demand, creating established clusters of branded hotels. That map, however, is beginning to change.

According to a September 2026 report, around 3,000–3,500 branded hotel rooms are currently in the pipeline for Chennai over the next three to four years. With the city estimated to have nearly 8,500 branded rooms today, the additions could take the market to around 11,000–13,000 rooms by 2030 if projects materialise as planned.

The more interesting story, however, is not simply the number of rooms being added. It is where they are being added and why.

OMR is emerging as one of the clearest examples. With Chennai's expanding GCC, IT and commercial ecosystem, the corridor is increasingly functioning as a business district in its own right. Sanjay Chugh, Director, Chennai, Anarock Group, described OMR as effectively becoming Chennai's “second CBD”, with established brands already operating along the corridor and further supply expected.

The logic is straightforward. More offices bring more employees, business visitors, meetings and corporate travel. Hotels consequently begin to follow employment and commercial activity rather than simply traditional tourist routes.

ECR represents a different model altogether. Its appeal lies less in corporate concentration and more in its combination of beachfront leisure, weddings, events, wellness and MICE. Sustainable tourism expert E Balaji has suggested that ECR could develop into a managed coastal experience corridor where accommodation, weddings, corporate offsites and leisure are packaged around the coastline.

Further west, the Sriperumbudur–Oragadam industrial belt is generating another form of hotel demand. Driven by Chennai's automobile and manufacturing ecosystem, the area increasingly requires business accommodation for corporate travellers, project teams and industrial visitors. This is also contributing to a pipeline beyond the luxury segment, including more mid-market properties.

Yet one part of Chennai remains comparatively underrepresented in the branded hotel landscape. Western areas such as Anna Nagar and surrounding neighbourhoods have significant residential and commercial activity but relatively limited branded supply. As the city expands geographically, this could become another market for hotel developers to examine.

The transformation suggests that Chennai may no longer be best understood as a single hotel market. Different parts of the city are developing different reasons to stay.

The challenge will be matching new supply with sustainable demand. GCC expansion, manufacturing, weddings, MICE and leisure can all support hotel growth, but each requires the right location, product and connectivity.

Chennai's next hospitality chapter, therefore, may not be about building more hotels around one centre. It may be about recognising that the city itself is becoming a collection of distinct hotel markets.


LuLu Hypermarket’s Chennai Debut Draws Crowds, Raises Questions on Store Management

LuLu Hypermarket’s Chennai Debut Draws Crowds, Raises Questions on Store Management

By Manu Vardhan Kannan

Published on October 23, 2026

Chennai’s retail scene has welcomed a major addition with the opening of LuLu Hypermarket at Chennai Central and Shenoy Nagar Metro stations on 12 October 2026. The launch attracted significant public attention, with large crowds visiting the stores during the first week. Social media reels and online buzz before the opening also helped build interest among shoppers eager to explore the new shopping destinations.

The LuLu Hypermarket at Shenoy Nagar Metro Station spans one lakh square feet, bringing groceries, fresh produce, baked goods, fashion and electronics under one roof. The arrival of the retail brand has added another shopping option for Chennai residents, offering a wide range of products in one location.

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The LuLu Group has a presence across more than 20 countries in the Middle East, Asia, Europe and the United States. It also operates more than 270 retail stores across the Gulf Cooperation Council (GCC) countries, including the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. Its international presence has helped establish the brand among shoppers across several markets.

However, the strong response during the first week has also brought operational challenges into focus. Managing large crowds, maintaining product displays and ensuring a smooth billing process can become difficult when customer numbers exceed expectations. Some shoppers have reportedly found products placed in sections other than their designated areas, adding to the challenge of maintaining an organised shopping environment.

Customers have also highlighted the need for additional billing counters to reduce waiting times and improve the overall shopping experience. A separate billing section for food items could help customers purchasing groceries and ready-to-eat products move through the checkout process more efficiently.

Long queues can also lead to abandoned purchases, particularly when shoppers do not wish to wait at the billing counters. Reports of food products being left near checkout areas underline the importance of having a system to collect, check and return such items safely to their proper locations.

Recent visuals from LuLu Hypermarket in Shenoy Nagar have raised concerns about customer behaviour inside the store, including instances where food packages were reportedly opened and partially consumed before the remaining products were returned to the shelves. If confirmed, such incidents would raise questions about food hygiene, product handling and the risk of other shoppers unknowingly purchasing opened or tampered items.

For a supermarket handling fresh produce, packaged food and ready-to-eat products, maintaining food safety requires attention from both the retailer and its customers. Regular shelf inspections, prompt removal of opened or damaged packages, clear customer guidance and closer monitoring of high-traffic areas can help reduce these risks. Any product suspected of being opened or tampered with should be removed from sale until its safety can be established.

As the initial excitement around the new stores continues, the next step is to turn strong customer interest into a pleasant and reliable shopping experience. Better crowd movement, sufficient billing counters, dedicated checkout facilities where practical and stronger product monitoring could help address the challenges seen during the opening week.

LuLu Group has built an established retail presence in international markets, and its Chennai stores now have an opportunity to bring that experience to one of India’s major metropolitan cities. For shoppers, the expectation is simple: a wide selection of products, reasonable waiting times, organised shelves and confidence in the safety of the items they purchase.

The opening-week crowds have demonstrated the public’s interest in LuLu Hypermarket’s Chennai debut. With effective store management and shared responsibility between the retailer and its customers, the new outlets can work towards making that enthusiasm part of a consistently positive shopping experience.


India Targets 1% Sustainable Aviation Fuel Blending for International Flights from 2027

India Targets 1% Sustainable Aviation Fuel Blending for International Flights from 2027

By Hariharan U

Published on October 23, 2026

India is preparing to introduce a 1% sustainable aviation fuel (SAF) blending target for international flights from January 2027, marking an important step in the country's efforts to reduce aviation emissions and establish a domestic market for lower-carbon aviation fuels.

The government has outlined a phased approach, with indicative SAF blending targets of 1% in 2027, 2% in 2028 and 5% in 2030 for international aviation. The initiative aligns with preparations for the mandatory phase of the International Civil Aviation Organization's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which begins in January 2027. 

SAF is an alternative to conventional aviation turbine fuel and can be produced using eligible renewable feedstocks, including used cooking oil, agricultural residues and other waste-derived materials. Depending on the production pathway and feedstock, it can reduce lifecycle greenhouse gas emissions compared with fossil-based jet fuel. However, production costs, feedstock availability and certification remain important considerations for scaling up its use.

Preparing India's SAF Supply Chain

India's transition will depend on the readiness of fuel producers, airlines, airports and certification systems. In July 2026, Civil Aviation Minister Ram Mohan Naidu reviewed the country's preparedness for SAF adoption and CORSIA implementation, including production projects, certification processes and supply-chain development.

The discussions also covered a proposed national SAF registry to improve traceability and an accounting, monitoring and reporting framework aligned with ICAO requirements. The government has been working with stakeholders to ensure that sufficient certified fuel is available as the 2027 timeline approaches. 

Indian Oil Corporation has obtained International Sustainability and Carbon Certification for SAF production at its Panipat refinery. Other oil marketing companies are also progressing production and refinery co-processing projects to support the country's initial blending requirements.

The Cost and Scale Challenge

While the initial target is relatively modest, the economics of SAF remain a significant challenge. Sustainable aviation fuel generally costs more than conventional jet fuel, making production incentives, reliable feedstock collection and cost-effective distribution important to the transition.

The next challenge will be scaling supply as the indicative blending target rises to 5% by 2030. Industry assessments point to the need for additional investment in standalone production facilities and feedstock infrastructure to support longer-term demand. 

For airlines, fuel sourcing and emissions compliance will become increasingly important as international aviation moves towards lower-carbon operations. For India, the initiative also presents an opportunity to develop domestic fuel-production capabilities while strengthening the systems required to verify sustainability claims.

The proposed transition will therefore depend not only on setting blending targets but also on building a commercially viable SAF ecosystem. As January 2027 approaches, the focus will be on translating policy objectives into certified production, dependable supply and a practical implementation framework for international aviation.


India Exports Makhana, So Why Is It Still So Expensive at Home?

India Exports Makhana, So Why Is It Still So Expensive at Home?

By Hariharan U

Published on October 22, 2026

India’s makhana industry is gaining international traction, but a question remains for domestic consumers: why does a traditional Indian food often carry a premium price tag in the very country that produces most of it?

India exported 7,264.89 metric tonnes of makhana and makhana products in FY 2025–26, valued at approximately ₹192.96 crore, according to government data. With demand expanding across international markets, the opportunity extends beyond exporting the raw product to developing branded snacks and other value-added foods. 

Why does makhana cost so much?

Unlike many conventional crops, makhana requires labour-intensive harvesting and specialised processing. Its seeds are collected from ponds or cultivated fields, cleaned, dried, roasted and popped through a process that has traditionally depended on skilled workers. The seeds also undergo multiple stages of handling before becoming the white, puffed product consumers recognise.

Research by the Indian Council of Agricultural Research has highlighted the demanding nature of this process, while value-chain studies identify processing, grading, packaging, transportation and intermediary margins as contributors to the final retail price. The conversion from raw seed to popped makhana also means that considerably more raw material is needed to produce a kilogram of the finished product.

Premium packaging and branding add another layer to the price. As makhana enters organised retail and health-focused snack categories, flavoured varieties, smaller consumer packs, marketing and distribution can increase what shoppers pay. However, the extent of each cost depends on the product, quality and route to market.

Rising demand is another factor. Government data indicates that average makhana prices increased from around ₹500 per kilogram in 2020–22 to nearly ₹1,250 in 2025, while production grew by only 4–5% between FY 2021–22 and FY 2024–25. This points to a supply response that has struggled to keep pace with growing demand.

The opportunity lies beyond raw exports

India’s next challenge is to capture more value from its production advantage. Selling bulk makhana can open international markets, but processing, flavour development, quality standardisation and branding can create additional revenue opportunities for Indian businesses.

A July 2026 shipment of value-added flavoured makhana from Bihar to Canada demonstrated this potential. According to the government, the initiative enabled associated farmers to realise over 50% higher returns through value addition and improved market access. 

Yet, value addition must extend beyond the retail shelf. Better processing infrastructure, improved productivity, stronger farmer-producer organisations and more direct links between growers, processors and buyers could help distribute the gains more widely.

For consumers, the question is not simply whether makhana is worth its price, but what that price represents. For the industry, the bigger opportunity is to build a value chain in which export growth, product innovation and better farmer returns progress

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