Strategic Alliances, Collaboration and Joint Ventures Case Study

Godrej tie-Up with Future Group for rural retail -A Win-Win Strategy?

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Abstract:
In March 2008, two Indian conglomerates, Godrej and Future Groups agreed to join hands for initiating rural retail. Future Ventures of Future Group bought a 70% stake in Godrej Aadhaar Retailing Ltd, a wholly owned subsidiary of Godrej Agrovet, which is a division of the Godrej Group. Godrej Aadhar addresses the needs of agriculturists and the farming communities in general, whereas Godrej Agrovet caters to total consumer requirements of rural households in their outlets. India with its predominantly rural and semi-urban population, presents an enormous potential for rural retailing. Cashing in on this, Godrej has joined hands with Future group to open retail shops in rural areas. An exploration into the marketing synergies of the alliance which seems to be a win-win strategy has been attempted.

Pedagogical Objectives:

This case study aims at achieving the following pedagogical objectives:
• To comprehend trends and opportunities in the Indian rural retailing sector.
• To study the challenges arising out of a joint venture between a consumer durable company and an apparel retailer.
• To analyse the challenges of a foray into rural retail.

Keywords :  Godrej Group, Business divisions, Future Group, Trends and growth, The Indian retail industry, Future Group's tie-up with Godrej Aadhaar, Significance of mergers and acquisitions (M&A), Challenges of extension into rural retail

Contents: 
Godrej’s ‘Aadhaar’ Business
Business Profile of Godrej Agrovet
‘Future Group’s’ Acquisition of ‘Aadhar’: The Benefits
The Godrej Business Profile
Business Profile of Future Group