Abstract

This caselet discusses the acquisition of Trinethra Retail by Aditya Birla Retail. The Trinethra brand had considerable strength, and the chain was one of the fastest growing retail companies in South India. The acquisition was expected to prove advantageous to the Aditya Birla Group as it would give the Group ready access to the booming retail market in India. Traditionally, organized retail formed a very small part of the retail segment in India. However, this was changing as disposable incomes increased and Indian consumers became exposed to western shopping habits. Therefore, many large groups and companies like the Reliance Group, the Tata Group and Bharti Enterprises, saw considerable potential in the market and launched their retail plans in 2006, some in partnership with global retailers like Wal-Mart and Woolworth Limited.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Industry analysis
• Competition
• Growth Strategy
• Mergers and Acquisitions.

Keywords

Aditya Birla Retail, Aditya Birla Group, Trinethra Super Retail, India Value Fund, Acquisition, Retail segment, Fabmall, Quality First, Multi-format retailing, Reliance Fresh, Bharti Enterprises, Wal-Mart Stores Inc, Woolworths Stores Inc., Tata Infinity Retail, Croma, Inorganic growth, Organized retail