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)