Lulu Group successfully completes strategic SAP carve-out ahead of IPO
Lulu Group enables IPO readiness with rapid carve-out
As part of its broader digital transformation strategy and in preparation for an initial public offering (IPO) of its ME business, Lulu Group undertook a mission-critical initiative to separate the India and Egypt business operations from its centralized SAP ECC system based in the UAE. This strategic decision was not only aimed at organizational and operational independence for the carved-out entities but was also a foundational step in preparing the UAE business for its future transition to SAP S/4HANA. The project required a dual objective: To carve out the complete business data for India and Egypt into two new systems and to securely delete the respective data from the original UAE system.
The challenge
This undertaking came with significant complexity. The legacy system, SAP ECC ERP 6.0 with EHP7 Suite on HANA, had an SAP database of more than 6 TB, with approximately 20% of the data volume attributable to the India and Egypt company codes. The transformation involved a full migration of financial, logistics, human capital, real estate, retail, and compliance-related data across multiple SAP modules, including FI/CO, PS, MM, SD, QM, PP, PM, RE, HCM, and EHS running on the industry solution IS-Retail. In addition to migrating standard data, the project required the inclusion of custom tables and intercompany documents, all while ensuring full data integrity, auditability, and compliance.
The solution
To execute this complex transformation within a highly compressed timeline, Lulu Group selected SNP as its exclusive data transformation partner. SNP deployed its proven Bluefield approach powered by Kyano CrystalBridge, a software-driven methodology that enabled automated, selective, and simultaneous carve-out and deletion processes. Unlike traditional methods, which often rely on manual processes and extended project timelines, SNP’s approach delivered accelerated results with enhanced accuracy and transparency. The transformation was completed in just six months, culminating in a single successful go-live with less than 48 hours of system downtime.
Hybrid delivery with global expertise
The project was delivered through a hybrid on-site and remote model. While the primary project location was in Abu Dhabi, SNP assembled a dedicated team of transformation consultants and project managers from the Middle East and Slovakia. The entire execution was supported by a tightly integrated toolchain, including SAP Solution Manager, Kyano CrystalBridge, and project-specific environments that ensured real-time collaboration, governance, and traceability across all phases.
The result
By automating and orchestrating multiple complex tasks, SNP’s Bluefield approach allowed Lulu Group to realize immediate business benefits. These included a faster return on investment, reduced total cost of ownership, improved governance, and significantly enhanced business agility. Moreover, the company avoided the risks and delays typically associated with traditional transformation models. The India and Egypt operations were seamlessly migrated into their new systems, while the global system was efficiently cleansed of legacy data, positioning Lulu Group to move forward with clarity and speed.
Benefits
- Accelerated transformation – full carve-out and data deletion across multiple countries, significantly faster than via traditional methods
- Minimal downtime – less than 48 hours of system downtime, ensuring business continuity
- Cost and risk reduction – leveraging automation reduced manual effort, minimized risk, and kept everything on budget
- Improved data governance and compliance – ensured a clean separation of data and full auditability
- Foundation for future innovation – positioned the UAE business for IPO readiness and enabled a clear path towards the SAP S/4HANA migration
Key Facts
-
Project type
Carve-out
-
Solution
Kyano CrystalBridge
-
System
SAP ECC 6 with EHP7 Suite on HANA
-
System size
6 TB
-
Location
Abu Dhabi
-
Downtime
Less than 48 hours
SNP has proven to be a highly reliable SAP transformation partner. The volume of this selective data migration amounted to about 20% of the 6 TB database. Our joint success fuelled our trust in the expertise of SNP to cope with very complex data transformations and large data volumes in a timely manner. This makes us even more excited about tackling the move to SAP S/4HANA together, and we are already planning this upcoming project.
Anish Mohamed
Group CIO at Lulu Group
About Lulu Group
Lulu Group is the largest full-line retailer across the GCC, leading by selling space, sales and number of stores.
The organization has a strong omni-channel presence in the form of both brick & mortar stores and e-commerce. It operates a network of 267 stores, comprising 123 Hypermarkets, 118 Express Stores and 26 Mini Markets across 6 GCC countries. E-commerce is offered via Lulu’s own web & mobile application along with strategic partners such as Amazon, HungerStation, Snoonu and Talabat.
