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Subhiksha - Presentation Transcript 1.

group-4Dev prayaglavkumarshubhangikaushalswapneshjainmukeshsinghshivpalsingh ITM- GLC-Navi Mumbai

2.why they failed!!!

3.Subhiksha means prosperity in Sanskrit. Founded by R. Subramanian, an IIT-IIM alumni in 1997 Wasone of the largest retail value chain in India.(in terms of no. of stores) 1600 outlets selling groceries, fruits, vegetables, medicines and mobile phones.

4.The People ASSOCIATED 1) Chairman ‐R Subramanian (IIM‐A Alumnus) 2) Ms.Rama Bijapurkar (IIM‐A Alumnus),Board of Director 3) Mr. Kannan Srinivasan (a professor of marketing at Carnegie Mellon University’s TepperSchool of Business),Board of Director 4) Mr. S.B. Mathur, former LIC Chairman, 5) Ms. RenukaRamnath, Managing Director of ICICI Venture 6) Ms. Rajeev Bakshi, Deputy Managing Director of ICICI Venture and a former CEO of PepsiCo India. 7) Mr. AjemPremij as Board member

5.Major shareholders ICICI Venture-23% Ajempremji(wipro)-10%

Delhi.The expansion: March 1997 -Opening of the first retail store in Chennai.The Positioning: Low Prices :Subhiksha Positioned itself as Value Retail Chain /Discount Retail Chain. Savings : focuses on the concept of constantly sustainable low pricing . Feb 2007‐500 stores across country Dec 2007‐ 1000 stores across India . Wal-mart‐style. March 99‐14 stores in Chennai June 2000‐ 50 stores in Chennai&I CICI venture joins June 2002‐ 120 stores in whole of Tamil Nadu June 2006‐420 Stores in other big states in India namely Gujarat.ICICI prudential-5% 6. 8. Mumbai.STRATEGY Cut price strategy. 7. Andhra Pradesh and Karnataka. Trust : Subhiksha’s name inspires trust and its consumers rely on it through all times to deliver. The catchment area of customers.everyday‐low‐price (5‐10% less than MRP ) Shops are located not on the main road. with 5 lacs Initial investment. Focused on the lower & upper middle class. Informed customers about promotional offers.

Expanding rapidly without sufficient funds in hand Thought of raising equity during last September but were late Global scenario went wrong October.Financial Crisis Advertising:Advertising dues not cleared Wages and Rent :Huge list of outstanding wages and rent Disruption in supplies by wholesale suppliers 13. but we have to make it happen.Supplier Bargaining Power : . we are in trouble.Inadequate system control and IT Support: Caused huge audit & abnormal losses in system Government Intervention : Maharashtra FDA. It is not easy. 10.askedSubhiksha to suspend operations at its warehouse in Bhiwandi 14. 2008 the company ran out of enough funds to run the organization There after problems queued up at the doors 12. We need their (bankers and lenders) support and upon getting it we will restart operations and repay all debt.Reason For Failure Big mistake .” says R Subramanian 11.“We are a golden egg laying duck.October 2008‐ 1600 stores across India 9.

16. Subhiksha stores always sell handsets at below DP while its benchmarking is to match DP. Reliance retail and Future group etc.Huge Rental and Lease Bills : There are huge frauds while entering in to rental agreements by their own management people.Many wholesale suppliers in Azadpursubzimandi. No control on inventory of mobile accessories and there stock value and were unable to circulate the working capital. Middle and high level management. have stopped supplying fruits and vegetables in NCR surrounding the national capital.though this is a very crucial part to defeat competitors and to gain profitability in future. 15. Long credit periods Lack of strong HR policy and Staff‐ Was not able to retain the talent which he initially bring into Junior. The wrong assumption-telecom segment profit making segment.Strong Competition : Thus sinking into unrepaired conditions Subhiksha has to compete with its high profile competitors like RPG.Poor Inventory management Credit defaults caused supply breakages-inventories going bad or lack of stock Became re-sellers rather than retailer Re-selling to other retailers 17. The CEO never looked in to system losses arise from telecom. There was no proper check and control on this cost . Reliance Retail has set up 700‐odd stores in the past two years-Reliance Fresh . Whatever was remaining with it is all family bound with no commitment policy.

Over confidence and Aggressiveness: The raise of the company thus gradually started sinking down step by step and now stands on the verge of collapse.References: http://www.htm http://www.Competitive Analysis Competitors at the National Level 19.Competitive Analysis Competitors at the Regional Level They should have gone for an IPO when the things were well and good to prevent such downfall. The management admit that their over confidence and aggressiveness are the main reasons for their loss. 21. ambiance and size.Presentation Transcript .com/subhiksha.livemint. 18.rediff.On the other hand is high‐end in terms of display. If they had responded in right time they wouldn’t have been put through such bad http://www.htm 22092135 Why Did Subhiksha Failed (1) .

INTRODUCTION Largest retail value chain in India with 1600 outlets started in 1997 .OBJECTIVE OF THE STUDY Examine the various decisions made by Subhiksha and their alignment with the business model of Subhiksha Identify key challenges faced by Subhiksha and importance of assortment planning and inventory management for Subhiksha..Bhawna Upadhyay Pujil Khanna Sarika Taneja Vikas Mitta l 2. 3. Telecom and Pharmacy. 2800 million by the end of 2005 From 150 stores in Sept 2006 all of which were in Tamil Nadu the company grew rapidly to over 1600 stores by Sept 2008 across the country.The performance of Indiranagar store : 1. Fruits and Vegetables. Examine the supply chain practices followed by Subhiksha for different categories.SUBHIKSHA. 5. Gemini sunflower oil-negative receipts in case of Gemini .e. Pepsodent 2 in 1.1. Maggi noodle masala.KEY CHALLENGES FACED BY SUBHIKSHA 7. To study the management of variation in demand within a month and variation within a day.Supermarket. Evaluate the performance of the Indiranagar store on forecasting and inventory management. Chennai based grocery & pharmaceuticals store Founded by R. If we observe the negative receipts in case of 3 items mentioned i. Subramanian in 1997 Revenue Rs. Product Portfolio. 2200 million Aimed Rs.BUSINESS DECISIONS TAKEN BY SUBHIKSHA AND THEIR ALIGNMENT WITH BUSINESS MODEL OF SUBHIKSHA 6.PRESENTED BY. 4. 5.

aggressively by offering attractive schemes to its customers. Expansion of Stores without adequate system control and IT Support. Strong Competition.It can be inferred that most of the Gemini sunflower oil (1l) was sent from Indiranagar store to other stores to prevent inventory pile up and have tight control on inventory levels.oil is maximum.HOW VARIATION OF DEMAND IS CONTROLLED 10. coupled with low-quality.Maggi incurred moderate negative receipts and Pepsodent minimum. 2.REASONS FOR FAILURE OF SUBHIKSHA Expanding the number of stores rapidly without sufficient funds in hand. 4. which results in comparatively lower quality vegetables and fruits. Such limited product variety plus very frequent stock outs are adding to the displeasure of its customers.Sales of Pepsodent were maximum in Indiranagar store than maggi and Gemini oil has least sales at the store. Government Intervention. product. INTERPRETATION: EXIBIT 8 8. 11. Lack of strong HR policy and Staff. . The franchisee will receive a proven business model from an established business. Subhiksha does not provide any refrigeration facility at its stores. concept and business plan.THANK YOU!! Unlike Reliance Fresh and Food Bazaar.SUPPLY CHAIN PRACTICES BY SUBHIKSHA 9. limited product offerings may have an adverse impact on Subhiksha's footfalls Reliance Fresh focuses more on its private labels. Subhiksha has limited product variety and we found that some items in our product category list were not available at all. 3. We believe that such frequent stock outs. Franchises: Purchasing a franchise is buying the right to use a name. which it pushes more.

and unnamed shareholders will fund the relaunch of four to five Subhiksha branded outlets Vidhya Sivaramakrishnan and Rasul Bailay Chennai / New Delhi: A year after shortage of cash forced Subhiksha Trading Services Ltd to close its nationwide network of 1. The franchisee receives help from a network and customers may already familiar with the name. or royalty. The marketing strategy has already been put in place. 9:32 PM IST Corporate News • Subhiksha plans relaunch in Chennai R. Support: Franchisors usually provide all the marketing. the Chennai-based discount retailer is trying to get back on its feet. Most all of the risk associated with starting a retail business has been reduced. vendor payments and staff salaries. • • • Posted: Thu. the retailer’s managing director. Startup costs relating to the franchise may be high. One of the biggest disadvantages of owning a franchise is the lack of flexibility and freedom. Subramanian. . Disadvantages: Franchisees pay a fee.Advantages: All of the business operation processes have been established. Jan 21 2010. based on sales each year.600 supermarket stores and default on loans. training and on-going support needed to run a successful business.

.” Subramanian did not respond to questions emailed to him by Mint. Ltd. medicines and mobile phones is planning to reopen a handful of outlets in Chennai. But walking out of the woods may not be that easy for a company awaiting court orders that may result in its liquidation. director of Zash Investment and Trading Co. A notice outside announced sales staff were urgently required for a “popular supermarket”. “Subramanian is contemplating to open some stores. he added. Lender Kotak Mahindra Bank Ltd and vendor HCL Infosystems Ltd have filed separate winding up petitions against Subhiksha in the Madras high court to recover their dues.Getting set: The Subhiksha store under renovation in Chennai. Vidhya Sivaramakrishnan / Mint The seller of groceries. Saravana Kumar. The rollout. who owns the property in Chennai’s Thiruvanmiyur neighbourhood where Subhiksha opened its first outlet in 1996. said he had no knowledge that the firm was planning to reopen some stores. one of its lawyers. I guess they are gearing up to reopen it. “There is a board outside the shop that says ‘Wanted Salesmen’. confirmed witnessing “activities” at the store. which holds a 10% stake in Subhiksha. Subhiksha’s move comes nearly a year after it asked lender banks to reduce interest rates and allow it more time to return their dues under a corporate debt restructuring plan. R. Pvt. who did not want to be named. and unnamed shareholders will fund the relaunch of four to five Subhiksha branded outlets. said two lawyers representing Subhiksha and a landlord whose property is also apparently being readied for the relaunch. vegetables.. the retailer’s managing director.000 per month. “Some work has been going on in that store for the last 15 days. “Subhiksha is going to open this store.” said one of the workers. N. fruits. the lawyers said.P. for salaries of Rs3.” Kumar said. Mustafa. S. could happen early next month. It will sell all (its usual) items.” said Prakash Goklaney.600-6. Subramanian had then said the firm . But a Mint reporter who visited Kumar’s property found some workers busy renovating the flagship store. Subramanian.

big retail accounts for 4-5% of the total pie. But Rahul Balaji. Another lawyer for Subhiksha. was unable to file a proposal to revive the retailer before an extended July deadline.5% annually. which included ICICI Bank Ltd. who did not want to be identified. HDFC Bank Ltd and Yes Bank Ltd. Completely fragmented. Estimated growth: MAGAZINE | DEC 31. Estimated to grow to $100 bn (16% of total retail) in five years' time. hoping to reach a settlement with creditors and vendors to whom they collectively owed Rs900 crore. the management can take such decisions. he added. The court dismissed their plea and instead admitted winding up petitions against Subhiksha by Kotak Mahindra and HCL. “There is no order against this. vidhya. •Organised. refused to comment on the subject. a lawyer for HCL. 80% are family-owned and run. said the pending court cases would have no bearing on the company’s plan to reopen some stores.s@livemint.would need about Rs300 crore to get back into business and open nearly 80% of its mothballed outlets. But a consortium of banks. Until and unless an official or a provisional liquidator is appointed. Subhiksha’s stakeholder then filed a compromise petition in the Madras high court. HCL. agreed there was no legal bar to stop Subhiksha from reopening stores. •There are 12 million unorganised retailers (or neighbourhood stores) across the country. •Big retail is just 1% of the food & grocery market . ICICI Venture Funds Management Co. 2007 The Big Picture •At $280 billion. an arm of ICICI Bank.” the lawyer said. India's retail sector accounts for 10% of GDP and employs 42 million people (8% of the total workforce). won’t oppose such a move. Ltd.

its deep-discount chain has 1.*** The Challengers Investment of $35 bn in retail over the next five years. has 430 Reliance Fresh stores. I did go to Food Bazaar once. including 100 hypermalls •Subhiksha Trading Set up a decade ago. Also. but felt lost and like an alien there. plans $7 bn investment in creating a retail network in the country. largely in food & grocery •Reliance Retail Planned investment of over $6 bn." . plans to double by 2008end. ambitious plans to grow its 51 Big Bazaar hypermarkets and 77 Food Bazaars •AV Birla Group Has 299 stores branded 'More'. Nature's Basket). Indiabulls Wholesale (Trumart). We can't break that relationship.070 stores Other players include Godrej (Aadhar. Keshto mama (the grocery store owner) has always been considerate and close to all of us. aims for a national footprint •RPG Group Has 350 Spencer's retail stores in 55 cities in four formats. strong in the South after acquiring Trinethra. aims to have 500 stores in 65 cities by March 2008 •Bharti Group With Wal-Mart in charge of backend operations. Tata Group (Trent) and so on *** "We get most of our food on credit from our local grocery store. targets 1.500 by 2011 •Pantaloon Retail Operates in many retail formats.

seemingly overnight.000. a cautious upa government commissioned think-tank Indian Council for Research on . promising greater choice and savings for consumers. Retired bureaucrat. while the figure for the UK is 3 per 1. but I don't mind because it is a one-stop shop and I save in fuel costs going from shop to shop. branded shop formats come up. millions of jobs. as well as an overhaul of the way India shops. Some items are not as cheap as elsewhere. some 12 million of them.K. corporate houses will pump in a huge $35 billion over the next five years to build networks of big retail chains. It's so neat and customer-friendly. so do the questions. it's 4 per 1. a Chandigarh-based retired government officer whose brother runs a corner store These two disparate voices from consumers lie at the heart of an emotional debate on the future of the small store in India.K. The impact is already being felt in urban centres as new." V.000. will the traditional momand-pop (or kirana) store survive? These are not insignificant issues for a nation of shopkeepers. Stung by sporadic protests against big retail in many states. assistant at the Calcutta Municipal Corporation's health department "I have been coming to Reliance Fresh since it opened and just love the ease of shopping here." —K. But as the juggernaut rolls on. With retail traders. Lucknow India is dotted with largely family-owned retail stores of all shapes and sizes. Mittal. But now I go to Spencer's nearby.000 people in India. "I never shopped in markets. Mahajan. pushcart vendors and daily-wage workers in the chain. retail equals 42 million people—making it the second-largest employer after agriculture. wholesalers. In the US. hawkers.—Pritha Mukherjee. Driven by projections that the country will become the world's fifth-largest consumer market in a couple of decades. Will Indian consumers change their shopping habits? Will deep pockets outprice and outmanoeuvre the existing players? And finally. It is estimated that there are 16 shops per 1.

K. Bangalore "In a supermarket. Chennai "I never shopped in markets. Though the final report is due in March 2008." Shalini Vinay. a recent story in the media says the survey actually shows a significant impact. But he says: "There is a negative impact on revenues and profits. And that low-income consumers are benefiting more from big retail than high-income ones. However. It's so neat and customer-friendly." Shanti Raj." V. But over a period. Lawyer. you are never sure of quality. to begin with. Quizzed by Outlook. There's also the personalised service. Homemaker. Retired bureaucrat. ICRIER chief executive Rajiv Kumar says the media story quotes an "old and partial version of our data" (see pg 46). the display acts as a reminder of some things you need but don't have on a list. Housewife. Choice at small shops is limited. But now I go to Spencer's nearby. Kumar was guarded about the details. Lucknow *** ." Ranjana Chowdhury. it wears off as the mom-and-pop stores are able to adjust and adapt. *** Consumer Speak "Local grocery stores give you discount on everything. and therefore able to find ways to protect their niche. Indirapuram "I get stuff from Nilgiris. adding that the survey reveals that consumers want both formats (the mom-and-pop stores and the malls) as each offers different advantages. with 50 per cent of small retailers reporting lower sales. Mittal.International Economic Relations (ICRIER) to survey the impact of big retail on the corner store." He also says there is "very little impact" on employment as the corner store "competes successfully". which offers variety and fresh stock.

While there is no slowdown." Kishore Biyani.'' Arvind Singhal Chairman. which has the largest spread of 1. small manufacturers and consumers.070 small format fresh food and grocery stores in neighbourhoods countrywide. there are many who say investments in big retail will bring gains for farmers. "With every new unit opening.Industry Speak "Companies are now circumspect. Subramanian. Says R. Future Group "With every new unit opening." At the same time. business would definitely fall for the existing ones in the short term. MD. they are treading carefully. even if in the initial stages. but one thing is clear: there will be some impact." R. Big retail and analysts agree. Subramanian. "The big retail chains will surely put . the business would definitely fall for the existing ones in the short term as the existing business gets shared among all players." Rajan Bharti Mittal. MD. Subhiksha Trading. Bharti Enterprises *** Source: ERNST & YOUNG *** There is some time before the report is made public. Technopak "We have created a new breed of shoppers that does not compete with the daily shopping needs that kirana stores cater to. MD. Subhiksha Trading "The intermediaries and middlemen of today could become entrepreneurs of a different kind. Chairman.

Spencer's to the AV Birla Group. Youth. under the banner of the Federation of Associations of Maharashtra (FAM).H. Orissa. While there's no indication from the upa government that it is taking a relook into its policy for the retail sector. "Local grocery stores give you discount on everything. Shops remain shuttered for the day and open soon after the trouble is over. Planning Commission. charge at the police. Last month. there is resistance. deputy chairman." says D. Says Pravin Khandelwal. Montek Singh Ahluwalia. Confederation of All India Traders (CAIT). "Our study of 10 countries clearly shows big retail tends to wipe out local competition to create a monopolistic market and then dictates prices to both consumers and small manufacturers from whom it is sourcing products. Indirapuram Also. but domestic retail chains in the food and grocery business. Shop inaugurations in Kerala too are invariably accompanied by street protests that follow a well-set pattern. from Reliance. but it remains to be seen whether the government has the political will with the 2009 general elections within smelling distance. Pai Panandikar of rpg Foundation. With any modern technology." The fact is that not all organised retail is being opposed. often pro-Left. All Union commerce minister Kamal Nath is willing to tell Outlook is: "The ICRIER report is not out yet. There's also the personalised service. improve and compete." CAIT is planning to conduct its own study on the impact on the small retailer. They are obviously itching to get into multi-brand retailing (where FDI is barred). West Bengal. caution rules. I'm only concerned with the part. Madhya Pradesh and Jharkhand) shows that trader associations are leading the charge. breach barricades and break a few glass panes before dispersing. thousands affected by big retail took part in a mass protest at Mumbai's Azad Maidan." Ranjana Chowdhury Lawyer." A look into the protests against big retail in nine states (including Uttar Pradesh. It is illogical to say we want development but don't want modern retailing.pressure to upgrade. Maharashtra. . secretary general. tells Outlook: "Modern retail is absolutely essential. foreign retail biggies like Wal-Mart and Metro AG are only allowed to operate in the wholesale trade.

. A vandalised Reliance Fresh store in Ranchi Then. as have Reliance Fresh stores in Bhubaneshwar. Most of the protests are focused on Reliance Fresh. director. For instance. Raghu Pillai. Saying that it is waiting for word from the two governments. not domestic chains. But farmer bodies —like Namdhari's Fresh—are benefiting. In West Bengal. companies sourcing directly from farmers have to pay it a 1 per cent tax. Food Bazaar has stopped selling perishables in Darjeeling. which say that big retail will lead to cartelisation which in turn will eat into their margins. a top UP government official spoke on the condition of anonymity. While there is no slowdown.. . because they realise value in their produce. "We are looking into the case and trying to work out some change in their (Reliance's) format so that the interest of farmers is not compromised. there are the farmer associations. Reliance Retail. "Companies are now circumspect. Minister of state for commerce Jairam Ramesh feels organised retailing has potential: "To the extent that the big retail chains source products from areas like the Northeast." Of course.Down with. "In the absence of a proper supply chain." says Arvind Singhal." he said. they are treading carefully." In all. which are asserting themselves. Says Ashok Gulati. which was asked to shut shop in UP and West Bengal. 19 states allow farmers to sell directly to companies instead of going through the mandis. it'll be an advantage. in Delhi's Azadpur Mandi. Reliance's return is in the works with the Forward Bloc recently saying it was opposed to foreign retail. the wet market remains fragmented where producers get lower prices and consumers pay higher prices. But it remains to be seen whether they will do so. Companies are quietly tweaking their models in other problem states: for instance. adds: "It's a free country. The associations have demanded a regulator to govern direct procurement by firms. International Food Policy Research Institute. the protests are affecting the companies' well-laid plans. Asia. A solution is in the offing in the near future. chairman of leading retail consultancy Technopak. president." When contacted. and we are free to sell and procure from whoever we choose.

though it will grow rapidly over the next few years. VP. In evolving economies. the top 10 chains put together cannot come close to unorganised retail. retail and consumer goods. For one. Says Asitava Sen. 93 per cent of households across India prefer the local kirana store for staple food and vegetables. and the fact that many women don't have personal transport. consumption patterns are not expected to change overnight. while those in the East go for loose. Future Brands: "There will always be a place for a personal. dramatic shifts in a hurry. Spencer's Retail. Future Group Says Samar Singh Sheikhawat. "In China. Many corner stores are cleaning up their displays and reaching out to price-sensitive consumers with deals.In its defence. partner." Besides leveraging long-term relationships with consumers. Says Santosh Desai. unbranded goods. CEO. says "Corner stores have become smart. at around 5 per cent of the total pie." Kishore Biyani Chairman. marketing. Given poor roads. the small store gives two crucial extras to consumers—goods on credit and home delivery. convenient shopping experience." Pinakirajan Mishra. big retail stresses that there will be no dramatic shift in customer loyalties and there's enough space for both large and small formats to coexist. even 10 years after FDI was allowed in retail. According to Technopak's Consumer Trends '06-07. you won't get such clear. And 66 per cent of households want to travel a distance of less than 200 m to 1 km for their shopping needs. In India. organised retail today is too small and urban-centric to have a major impact. prefer packaged goods. for instance. "We have created a new breed of shoppers that does not compete with the daily shopping needs that kirana stores cater to. they have started . Consumers in the south. the organised sector constitutes 35-40 per cent of the market. VP." The big differences in consumption patterns across the country may well be the corner store's best line of defence against the big-chain models. Technopak Advisors: "What nobody points out is that traditional trade itself is growing. Ernst & Young.

new retail formats will emerge. Says its proprietor Harish Bansal. There would be enough space for processing food and groceries to make it ready for the consumer. So.K. besides daily needs items.differentiating and giving value-added services. Now. " Clearly.. Traditional kirana player Peshawari has set up smart daily needs stores in different parts of Chandigarh." Here. we shall also stock cosmetics and imitation jewellery. There are 15 such branches. Finally. We don't bother about big retail brands in Bangalore because we're confident we know our customers best. Ahmed) in different localities of the city. Future Group. Varkey's and Giant. which has become a chain in its own right. It's already happening. founder and chairman. Ahmed Super Shoppe. Analysts say the rest of India will graduate to this model. one of India's largest retailers: "I believe we have created a new breed of monthly shoppers that does not compete with the daily shopping needs local kirana stores cater to. "We have a traditional kirana business in the grain market in Chandigarh and are targeting the housewife at this new store.K. Then there's Harri's Hypermart." Brand consultant Harish Bijoor talks about a franchisee model. what about the consumer? A cross-section of consumers Outlook spoke to are thrilled at being upgraded to the new shopping experience that big retail has served up. we plan to start a supermarket in North Bangalore. M. the small players interact with the consumer. Says Rajan Bharti Mittal. it would be instructive to look at the experience in the South. who runs the parent shop: "Next. each of the six children runs independent grocery stores (branded after M. "The intermediaries and middlemen of today could become entrepreneurs of a different kind. Ahmed had six children and the family divided after his death. Some large players like Bharti Retail are considering such formats. Panchkula and Mohali. MD.K. There are also many defenders of the small . where large players tie up with small stores. Says Kishore Biyani. Says Jaleel E. Bharti Enterprises. where 35 per cent of households prefer to shop at homegrown departmental stores—like Nilgiris." Or take Bangalore's M. While the big players manage the back-end and procurement." It obviously helps that the small store is sitting on expensive real estate—and is closer to the consumer. scheduled to open by the end of the month in Chandigarh.

A notice outside one of the shops stated the salary would be in the range of Rs 3. staffers from the shop came out and snatched the camera. but this was dismissed. which is changing to meet expectations. say sources. remained unanswered. . E-mails sent by this correspondent to R is planning to reopen some through a franchise model. “which none of us know where it went”.500 to Rs 6. returning it only after deleting all photos taken. Subramanian had earlier stated the retail chain would require Rs 300 crore to get back into business.000 per month. The bank has also asked for a probe. No guessing who's the ultimate winner from the retail revolution. the retail chain whose stores have been closed for more than a year for lack of money. creditors have decided not to lend any more money and there are petitions being heard in the High Court to wind up the company. promoter and managing director. India: Subhiksha stores to reopen as franchises Subhiksha Trading Services. ICICI Bank had stated that Subhiksha has an exposure of Rs 870 crore to banks. When a staffer of this newspaper took photographs. However. Rs 107 crore to unsecured lenders and Rs 250 crore reserves. Subhiksha had also filed for a compromise with its creditors. Renovation at two shops in the city are in full swing and advertisements for sales boys and girls have been placed.