SUBHIKSHA

Evolution

• SUBHIKSHA means Prosperity • Type Discount Departmental Store• Opened first store in Thiruvanmiyur & Chennai

March, 1997 • With an investment of about Rs. 5 lakhs • 1600 Outlets in India• Planned to open more 1000 outlet in 2009• WHO STARTED ?????????????

R. Subramaniam

Engg from IIT Madras

P.G. From IIM Ahmedabad

Joined Citi Corp in 1989 and left very soon.

Worked for Royal Enfield Chennai for 2 years

After that, became an entrepreneur

Started the retail shop Subhiksha in 1997

INTRODUCTION

• Product Portfolio- Supermarket, Fruits and Vegetables, Telecom and Pharmacy.

• Grocery & pharmaceuticals store • 164 stores all over Tamil Nadu & Pondicherry• About 1600 store all over the India • Revenue Rs. 2200 million • Aimed Rs. 2800 million by the end of 2005

GOAL

• Open store for every two kilometer in Chennai 550 store by 2009 in Delhi Plan to expand in other part of India

FOCUS

• Focused on the lower & upper middle class Offer a better ambience than typical general store Prices are 8% less than the MRP Inform customers about promotional offers Store keepers help buyers in purchase decision Strategy adopted by Shubhiksha

SUPPLY CHAIN MGT.

• Supply chain & Inventory It avoid intermediaries

• Goods directly procure from manufactures

• In house built supply chain software

• Separate godowns to stock branded, unbraned & pharmacy products

• All stores are connected through internet

PRESENT SITUATUION

• PHRAMACY ISSUE• Company has a total debt of around Rs 750 crore, • Need funds to operating requirements• Looking for selling stake to raise funds • Unable to pay wages, rentals and its suppliers.• Trying to protect its store & assets but it has been

crippled due to shortage of staff

Why Subhiksha Closed Down ?????

We All know that Retail market is booming. There is good potential in retail sector still 90-95% market is open.

Why this happened with SUBHIKSHA ?????

FIND IT OUT ????????/

OBJECTIVE OF THE CASE STUDY

• Examine the various decisions made by Subhiksha • Their alignment with the business model of

Subhiksha • Identify key challenges faced by Subhiksha • Importance of assortment planning and inventory

management for Subhiksha• To study the management of variation in demand

within a month and variation within a day

COME UP WITH SOLUTION.

THANK YOU