During the past decade, India has emerged as one of the most favorite destinations for business as Indian economy is growing at a rate faster than ever before. Economic liberalization of the country led to higher living standards, which ultimately changed the shopping behavior of the Indian customers. Organized retailing in India is flourishing and offering incredible opening to the retail players to convert the country into a shopper's paradise. This is the time when Indian business groups are interested in entering into alliances with multinationals. The arrival of Aditya Birla Retail and its acquisition of `Trinethra' can be considered as one of the important milestones in the landscape of Indian retailing. The basic objective of this case study is to critically examine the acquisition strategy of Aditya Birla Group with special reference to its recent acquisition of `Trinethra'. It is also intended to illustrate how a business group ensured its successful entry into an entirely unrelated business, and to comprehend the changing dynamics of Indian retail industry.

"We believe that the Indian consumer today is underserved. Even though we have many shopping outlets in India, many of them do not offer the kind of shopping experiences that people in most other parts of the world are used to, and even take for granted. As a result, spends by Indian consumers on their day-to-day needs and special shopping occasions are much less than they ought to be."

We are witnessing the waves of globalization where the entry of organized retail players has changed the entire shopping behavior of the Indian customers. Now, the fundamental goal of retailers is not only to sell the products but to offer an astounding shopping experience. Nowadays, the Indian retail industry has become very dynamic and sensitive as national and international players in this industry are continuously introducing new culture, concept and retail format to ensure unmatched experience to the shoppers. This is the time when the Indian retail industry is on the verge of something exceptional - as global retail giant like Wal-Mart, Tesco and Carrefour are looking for ways to enter and dominate the Indian market as well as to detain the huge customer base and colossal profit. At the same time the booming economy of this country is offering tremendous opportunity to the retail players to convert the country into a shopper's heaven.

On January 3, 2007 Aditya Birla Retail, a subsidiary of Aditya Birla Group has joined the battlefield of the organized retailing by acquiring the Hyderabad-based supermarket chain Trinethra Super Retail Limited (Trinethra), including its fast-growing online shopping unit, Fabmall (now indiaplaza.com). The Aditya Birla Retail acquired 90% of the stake of Trinethra leaving the remaining 10% in the hand of India Value Limited.

Global CEO Magazine, Acquisition of Trinethra, Indian Economy, Acquisition Strategy, Aditya Birla Group, Indian retail industry, Trinethra Super Retail Limited, Multinational Corporation of India, Acquisition, Compound Annual Growth Rate, Merger, Gross Domestic Products, GDP, Corporate merging, Mergers and Aquisistion, M&A.