Why does yum fails to install groups with offline repositories?

Issue

• yum groupinstall is failing on a client system with error: There is no installed groups file.
• Unable to list group info on a client system.

• Unable to install the group packages on a client system.

  # yum groupinstall "Development tools"      
  Loaded plugins: product-id, search-disabled-repos, subscription-manager
  This system is not registered with an entitlement server. You can use subscription-manager       to register.
  There is no installed groups file.
  Maybe run: yum groups mark convert (see man yum)
  Warning: group Development tools does not exist.
  Maybe run: yum groups mark install (see man yum)
  Error: No packages in any requested group available to install or update