Subhiksha: An Indian Retailer in Trouble


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
  
Case Studies | Cases in Business, Management, Cases | Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR333
Case Length : 15 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Subhiksha Trading Services Limited
Industry : Retail
Countries : USA

To download Subhiksha: An Indian Retailer in Trouble case study (Case Code: BSTR333) click on the button below, and select the case from the list of available cases:





Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Introduction Contd...

It started with retailing grocery items and later expanded into medicines, mobiles, electronics, and consumer durables. Till 2004, the company expanded slowly, but from then on, it went on a rapid expansion spree across India. Between September 2006 and September 2008, Subhiksha grew its operations from 150 stores in Tamil Nadu to 1600 stores across the country.7

Since September 2008, Subhiksha had started facing difficulties in operating its stores. It gradually stopped selling fresh fruits and vegetables. The supply of pharmaceutical products also became irregular. According to the newspaper reports, many employees of the retailer had not received their pay since September 2008.

The company had also reportedly defaulted on its vendor payments which resulted in empty shelves in the stores.

However, it was not until January 31, 2009, that Subhiksha admitted publicly that it was facing a major financial crisis. The company insisted that its business model was viable and that it would not shut down its operations...

Excerpts >>

7] "Sinking Subhiksha Needs Rs. 300cr Infusion," http://timesofindia.indiatimes.com, January 31, 2009.

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.