ZEE BUSINESS BEST B SCHOOL SURVEY
No frills... no thrills... just mounting bills!
The no frills retailer has been known for offering low cost products to the consumer but for the past few months, Subhiksha has lost a lot of ground to competitors, as it hasn’t been able to lure the customers due to the shortage of supply. “We are in pain but we are not shutting down,” said R. Subramanian in a note sent to the media. Sources confirm that the retailer hasn’t given salaries to its employees since October and owes a hefty amount to them across the country. “There are arrears on salaries and payments – not because we do not want to pay, but because we can’t pay,” admits Subramanian. The company is also planning to cut sown on its stores by a hefty count of 100-150 from the currently operating 1,600. Subhiksha, was once considered to be an underdog emerged as a very strong player in the retail industry, but the company made the mistake of over reliance on debt. They have raised only around Rs.1.8 billion on shareholder funds and the Rs.40 billion turnover in 2008 was funded largely through debt. Their equity plans last year fell flat as a result of the crisis, making their aggressive expansion ill-timed.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
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IIPM makes business education truly global (Print Version)
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IIPM Ranked No. 1 B-School In Global Exposre - Zee...
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No frills... no thrills... just mounting bills!
The no frills retailer has been known for offering low cost products to the consumer but for the past few months, Subhiksha has lost a lot of ground to competitors, as it hasn’t been able to lure the customers due to the shortage of supply. “We are in pain but we are not shutting down,” said R. Subramanian in a note sent to the media. Sources confirm that the retailer hasn’t given salaries to its employees since October and owes a hefty amount to them across the country. “There are arrears on salaries and payments – not because we do not want to pay, but because we can’t pay,” admits Subramanian. The company is also planning to cut sown on its stores by a hefty count of 100-150 from the currently operating 1,600. Subhiksha, was once considered to be an underdog emerged as a very strong player in the retail industry, but the company made the mistake of over reliance on debt. They have raised only around Rs.1.8 billion on shareholder funds and the Rs.40 billion turnover in 2008 was funded largely through debt. Their equity plans last year fell flat as a result of the crisis, making their aggressive expansion ill-timed.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...