Subhiksha: An Indian Retailer in Trouble |
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"The nub is that we were making Rs 1120-130 million of pre-tax profit and investing Rs500 million per month on expansion - we were to raise equity and then debt we did neither - that is the pain." 2 - R. Subramanian, Managing Director, Subhiksha Trading Services Limited, in February 2009. "There has been a complete failure, resulting in an operational and financial loss. We have only 23 per cent stake in the company, we will do anything from our side that can be done to salvage the company. ICICI venture has a fiduciary responsibility towards its investor." 3 - Renuka Ramnath, Chief Executive Officer (CEO), ICICI Venture4, in February 2009. "There was no prudence; (there was a mismatch) between what the real consumer demand was and the number of stores opened. Retailers have spread themselves too thin to benefit from scale." 5 - Pinakiranjan Mishra, Partner of Retail and Consumer Product Practice at Ernst & Young, in February 2009.
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1] As of March 04, 2009, 1 US $ = Rs. 51.99.
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