2. What went wrong There are several things which went wrong in Subhiksha’s case but 2 points are staring at me: Expansion against consolidation : With the availability of free capital and the irrational exuberance of the markets, people tried anything and everything to just expand without actually looking back at what they have become. Lack of Focus : This to me is the biggest thing every other company in India faces. Once they see profits they quickly put on their Ambani/Tata hat and try to become a conglomerate. It is just not one company they will run but they will create offshoots, Strategic Business Units, what have you and do all kinds of stuff. In the end they forget what they really want. Satyam is the best example for my case against conglomerization. That is the reason why I like Infosys for their extreme focus. In Subhiksha’s case though, it is not conglomerization but the lack of focus on the product mix they are offering.

3. Unmindful Expansion Growth without consolidation Wither retail management P&L, Balance sheets, Cash flows Supply chain Vendor management Inventory management Discounts as USP??????????? Quality of ground level management Diffused focus

4. IPO Private Mandi’s Trust

5. Analysts agree that Subhiksha’s low-cost model was sound. They blame the company’s troubles on its rapid expansion with debt capital to open 800 stores in a year. Although the same store sales were as high as Rs 12,500 per sq. ft during the first few months of 2008, the debt taken on a number of new stores and the financial crisis put paid to Subhiksha’s exuberance. The industry average for stores of 2,000 sq. ft (Subhiksha’s typical store size) to break even is Rs 5,000 per sq. ft, and analysts say that Subhiksha’s new stores never achieved break-even levels. – Business world. he Rs 300-crore and the restructuring may help Subhiksha revive, but only if it closes at least 40 per cent of its stores. That may keep it afloat, but would be disastrous for a company that fundamentally offers low prices and relies heavily on high volumes for better discounts from consumer companies. – Business Worlds

6. Consumer Complaints On 12th June 2007, I had purchased food items and other consumer goods worth Rs.1508.29 from the Subhiksha outlet situated at Ramanthapur, Hyderabad. M/s.Subhiksha had come out with an offer of 3 KGs of Charminar Brand Basmathi Rice for all purchases of Rs.1500 or above. The store Manager pleaded time of 2 to 3 days to deliver the free offer item as Subhiksha was reportedly running out of the stock. Despite umpteen number of visits to this outlet and phone calls to the Store Manager, the free offer remains undelivered. I request the authorities of MRTP commission through your esteemed site to initiate suitable action against SUBHIKSHA to curb this unfair trade practice and to see that justice is delivered to thousands of customers like me who have fallen prey to such cheap marketing tactics of Subhiksha.