Abstract

The case discusses how an Indian conglomerate, RPG Enterprises (RPG) and a Hong Kong-based retailing giant, Dairy Farm International (DFI) formed a joint venture, FoodWorld Supermarkets Ltd, to operate a supermarket chain in India under the name FoodWorld. It describes the measures RPG and DFI took to make FoodWorld one of the leading supermarket chains in India. The case then talks about how the relationship between the joint venture partners became strained and then came to an end due to disagreements over issues like trademark infringement, control over the joint venture, etc. The case also talks about the steps taken by RPG and DFI post spilt to continue their operations in the retail market. It also throws light on the competitive scenario in the Indian organized retailing market and its impact on RPG.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the role of joint ventures in retailing
• Analyze the pros and cons of joint ventures
• especially those involving foreign partners
• Study the impact of liberalization on the organized retailing industry in India.

Keywords

RPG Enterprises, FoodWorld, Joint venture, Dairy Farm International, Retailing giant, Spencer's & Co, Organised retailing, Supermarkets, Diversified conglomerate, Food retailer, Hypermarkets, Giant, Retail business, Indian retail sector