By sinha on 9, February, 2009 | Channel: Indian Retail Industry

Subhiksha Story – Anatomy of Bust

Subhiksha – started in 1997 was only 150 stores company till 2006 – and suddenly grew to 1,600 stores by 2008. The rapid expansion brought in revenues, but over-confidence blinded the company and we all know where it stands today (inspite of Premji buying 10% stake in Subhiksha) – the company needs Rs. 300 crores cash infusion to run the operations (recently they claimed that ~600 stores have been vandalized by unidentified elements.

“Our overconfidence that because we ran a good business, equity would always be there, proved our undoing. We did not budget for a time when there would be no money.

..Around 600 of our stores have been targeted by unidentified elements and there has been large-scale looting and ransacking” – source

So what went wrong? Recession of course, but what about their supply chain?

Here is a good analysis of Subhiksha’s story:

PS: There is a typo in the presentation (slide 6 timeslines)

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    • comment(s) on Subhiksha Story – Anatomy of Bust

    9 Responses to Subhiksha Story – Anatomy of Bust

    1. Murali says:
      February 9, 2009 at 10:39 PM

      Time travel in slide 6 ?

      Reply
    2. Arun says:
      February 10, 2009 at 6:39 PM

      They have not paid salary to their employee from last 6 months. There are no unidentified elements, their employee took control of few store and they were running the stores from last two months, just to recover their salary. They are just poor people and forced to do so, at the fault of their management. …as told to me by store manager.

      Reply

    3. Pingback: The Rise and Fall of Subhiksha | India Business Blog

    4. Manas says:
      February 19, 2009 at 1:02 AM

      Hi Ashish

      Thanks for your effort at sharing my presentation. As a follow up to my first presentation, i have now put up another presentation reflecting a ltlle more on the future of subhiksha.
      http://www.slideshare.net/Manas.Ganguly/the-road-to-no-where
      Do leave me your comments,

      Thanks
      Regards
      Manas

      Reply
    5. Debjit says:
      February 24, 2009 at 4:14 PM

      patience pays… the old saying still holds good!

      Reply
    6. suresh says:
      December 18, 2009 at 8:54 PM

      hi iam doing a prject about subiksha retail company so kindly you plz send about subiksha reatail co information within 2 days plz

      Reply
    7. kk says:
      September 13, 2010 at 5:32 PM

      they does not have any policies before start, only over confidance and chennai (tamilian )mark managment style

      Reply

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