Subhiksha was started by R. Subramaniam, an IIM A & IIT Chennai alumnus in 1997 Expenditure of about Rs 4-5 lakh.
Theme, вЂќ how come pay more when you can get it for sale at Subhiksha. вЂќ Discount store at prices below other retail outlets
Fruits, Vegetables, Groceries, Madicines, Mobille phones
An IIM A graduate student, who desired to join Fish ponds, ended up becoming a member of Citibank but quit the lender after 15 days and then worked well for two years at Enfield before he decided to start on his individual. His initial venture, a financial services company called Viswapriya brought him money but he was unsatisfied as he has not been occupied with work the way he wanted. This passion for being entertained led to Subhiksha, one of the greatest retail stores in India. He started to be the poster boy of Indian Full as another with the retail tycoon, Kishore Biyani of Big Baazaar. Today should you see Subhiksha or Subramanian in newspapers chances are excessive that it will end up being preceded simply by words like closedown, non-payment or some from the recession prevalent jargons like cash-strapped or accounts difference. Eminent organization personalities just like Mr. Azim Premji of Wipro Group who utilized to praise this young man intended for his organization skill (he also used money in the retail chain) is accusing him of haste in corporate. ICICI Projects and Subramanian are released in open against each other. What basically happened with Subhiksha? We am simply putting down the thoughts which usually came to my thoughts. Subhiksha, that has been started way back in 1997, was based in Chennai, India. It had been operated being a discount retail outlet format. That started with retailing food items sometime later it was expanded in to medicines, mobiles, electronics, and consumer durables. Till 2004, the company expanded slowly, yet from then on, it went on an instant expansion gratify across India. Between Sept 2006 and September 2008, Subhiksha grew its functions from one hundred and fifty stores in Tamil Nadu to 1600 stores across the country Subhiksha was started simply by R. Subramaniam, an IIM A & IIT Chennai alumnus in 1997 Leading a new tendency.
Opened it is first retail outlet at Thiruvanmiyoor in Chennai, 1997.
Expenditure of around Rs 4-5 lakh.
Motif, вЂќ how come pay more when you might get it for sale at Subhiksha. вЂќ Price cut store for prices less than other stores
500 stores in early 2007
Set up you, 000 sq ft shops all across the location
RETAIL FORMATTING OF SUBHIKSHA
Small Store format
Non commercial Locations
Availing Branded Items
STRATERGIES FOLLOWED 2C's
Criticality of price
Convenience of Shopping for
No Frills Store, EDLP Strategy, Off the main streets to take advantage of inexpensive, Catchment part of approx two kms, Community low cost to do business front-end of Kirana retailers with efficient supply sequence of a large retailer INTERNAL ANALYSIS
Establish on its own as a community store, Each day low price system, Wanted to obtain greater transmission in all marketplaces, Lease leasing system for stores, Central purchasing Subhiksham Card, Advertising Communication, Source Chain and Inventory yield efficiency, Home Delivery System, Use of THAT, Online Retail System ACCOMPLISHMENT TIMELINE OF SUBHIKSHA
1997 - first grocery Store in Chennai
2k - 50 stores in Chennai
2150 June -- ICICI Venture 10% risk for 12-15 Cr
2001 - Increased Stake to 23%
2002 - 120 Stores across Tamil Nadu
2003 -- Azim Premji 10% risk from ICICI Venture for 230 Crystal reports
2006 - 500 Retailers across the country
3 years ago - a thousand Stores Around the world
FAILURE TIMELINE OF SUBHIKSHA
2007 -- 350 Crore IPO
08 April -- Enter into Low cost Market
08 April - Un-mindful Development
2008 This summer - Market Falls
2008 Oct -- Operating Issues
2009 - Major Financial meltdown
2009 Drive - Turn off Operations
In 2000 ICICI Venture invested in Subhiksha with 10% stake at Rs15 Cr & raised stake to 23 % by simply 2004 Subhiksha also brought up a 12-15 Cr financial debt from the industry
2003 -- Azim Premji took 10%...