The Rise and Fall of Subhiksha...?


  •   S. Ravindra Babu SRN Adarsh College, Chamarajpet, Bangalore



Entrepreneurship, Marketing Strategy Like Low Cost Strategy, Retail Industry, Porters Model, Business Environment, Aggressive Expansion Strategy, Ethics and Corporate Governance.


Subhiksha was India's largest retail chain based on number of stores. In December 2008, it siiut down over 90 stores around the country. Subhiksha, which had started as a single outlet in Chennai grew rapidly and in a span of 11 years, the company had over 1,600 outlets throughout the country. The company had been facing a financial crunch which it revealed publicly only in January 2009 though it was not in a position to pay rents or employee salaries or other outstanding bills. The management of Subhiksha said that the problem faced by the retail chain was due to its inability to raise enough equity and was not because of its business model, which was very efficient. Experts too felt that the crisis faced by the retail chain was due to the management's decision to not opt for an Initial Public Offering. Subhiksha's operations have come to a standstill due to nonpayment of employees salaries, huge debt burden and arrears to suppliers, and the company is seeking liquidity infusion to the tune of Rs300 crore to revive its operations. The company would be able to raise Rs300 crore, required for meeting operational expenses, only after completion of the CDR process, ending July 31st 2009 managing director R. Subramanian said.




How to Cite

Ravindra Babu, S. (2009). The Rise and Fall of Subhiksha.?. Adarsh Journal of Management Research, 2(2), 63–70.



A Case Study