The prospect of online grocery (e-grocery) shopping has generated a substantial amount of interest. Many fast-moving consumer goods companies have entered this potential market, and Hindustan Unilever Limited (HUL) is contemplating building its own e-grocery platform. However, e-grocery firms have yet to develop a business model that can consistently deliver profits while also creating value for customers. HUL needs to assess the potential barriers to success, including challenges such as inadequate infrastructure and customer skepticism. If the company decides to launch its e-grocery store, which model should it follow? Should HUL enter the e-grocery arena with a full range of products or only a select few? What technical and physical capabilities would the company need to succeed in the online retailing business? HUL has always been at the forefront of using technology to reach consumers, but is e-commerce the best way forward?

The prospect of online grocery (e-grocery) shopping has generated a substantial amount of interest. Many fast-moving consumer goods companies have entered this potential market, and Hindustan Unilever Limited (HUL) is contemplating building its own e-grocery platform. However, e-grocery firms have yet to develop a business model that can consistently deliver profits while also creating value for customers. HUL needs to assess the potential barriers to success, including challenges such as inadequate infrastructure and customer skepticism. If the company decides to launch its e-grocery store, which model should it follow? Should HUL enter the e-grocery arena with a full range of products or only a select few? What technical and physical capabilities would the company need to succeed in the online retailing business? HUL has always been at the forefront of using technology to reach consumers, but is e-commerce the best way forward?

The case considers the evolution of the Indian pulses market and the ensuing opportunity in the branded pulses segment. India was the world's largest producer, importer and consumer of pulses because of the high percentage of vegetarians in the local population. The Indian food industry is expected to reach US$65.41 billion by 2020 owing to the rise in middle class income, changing urban lifestyle and modern retail trade. Agro Tech Foods, the Indian arm of ConAgra Foods, USA has an opportunity to enter in the Indian branded pulses sector. The decision that Agro Tech has to make was whether to go ahead and gain the prime mover advantage or wait for the other players to cultivate the market and reap the benefits later. Company also required to see whether the Indian market was demographically, economically and psychologically ready to make investments in branded pulses and to pay a premium for the same.