The Break-Up of the RPG-DFI Joint Venture

The Break-Up of the RPG-DFI Joint Venture

To understand the role of joint ventures in retailing

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.

Issues:

  1. To understand the role of joint ventures in retailing

  2. To analyze the pros and cons involved in forming joint ventures with foreign partners

  3. To study the impact of liberalization on the organized retailing industry in India

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