The World Opinion

11 year old retailer, Subhikha, is on the verge to close down a significant number of stores of its total 1600 stores all across the country. This is happening because of the major cash crunch being faced by the company.

Retail chain which is being promoted by Chennai based R. Subramaniam and Wipro’s promoter Azim Premji, is currently battling for survival. But promoters showing their confidence said, it will definitely not be closed down, but 10% stores are being removed from the kitty, to reduce the load. The promoters also said that it’s not the consequence of any demand reduction, but just the fact that they tried to grew too much, too soon, without substantial backing which created chaos and the current cash crisis.

Company currently has about 15000 employees, the salaries of which has been on hold since October and also the rentals of the stores operated under the name. The company officials say that we have overreached ourselves, by expanding at a rate that we couldn’t handle.

The company has recently touched the turnover of Rs. 2305 crores in 2007-08 which is 7 times of its levels in 2005-06. Company now wants to reduce its cost by shutting down stores, and relocating them nationally to locations where the rentals are low, taking advantage of the falling rentals across the country.


Company currently needs an infusion of about Rs 300 crores, but how they are going to manage that, nobody has an idea. With a net worth of about Rs 250 crores and liabilities of about 750 crores, the future of the company does look dim to everyone but the promoter R. Subramaniam still calls themselves a "Golden Egg Laying Duck" and still is positive on their target of 2300 stores and Rs 4300 crores of turnover, but remarks that they will be an year late for that now.

On receiving the money and fulfilling the gap that they have, he first of all wants to pay the dept and that start on with the fresh operations of the company which are on hold for some time now.

Wishing Subhiksha a speedy recovery, for they dream to be the "Walmart" of India..