Aditya Birla Group Research Articles

Comparative Study of Organized Agri-Food Businesses in India

India is the second largest producer of fruits after China with on estimated production of 54.4 million tonnes in 2008. India’s diverse agro-climatic condition allows production of a wide range of tropical, subtropical and temperate fruits. Sighting huge business opportunities, retail giants like the UK’s Tesco, France’s Carrefour, and American Wal-Mart are looking to make a foray into the Indian retail market by providing the Indian customer a unique experience of shopping. Not lagging behind are the Indian cooperatives like Reliance with Reliance Fresh, Aditya Birla Group, ITC, Mahindra & Mahindra, and Adani Group. This research has specifically been carried out to understand the present organized agri-food retail sector in India as well as the objectives, strategies, and financial performances of six existing companies in this business. The research paper will enable business houses to plan and decide at what level they can venture the present highly fragmented Indian market.

L&T: Restructuring the Cement Business

The case describes one of the most hyped and controversial acquisition and de-merger episodes in Indian corporate history. The case involved two Indian diversified corporations: Grasim Industries Limited (Grasim) which belonged to the Aditya Birla group and a professionally managed Larsen and Toubro Limited (L&T). With an eye on exploiting possible synergies in the cement business, Grasim acquired a big chunk of shares of L&T and then went on to make an open offer for more shares. The case describes the situation and events unfolding after these developments with a view to highlight the intricacies involved in corporate restructuring through the process of demerger, such as, valuation, synergies, takeover defense and negotiations among various stakeholders.