Documente Academic
Documente Profesional
Documente Cultură
Subhiksha means prosperity in Sanskrit. Founded by R. Subramanian, an IIT-IIM alumni in 1997. Was one of the largest retail value chain in India.(in terms of no. of stores) 1600 outlets selling groceries, fruits, vegetables, medicines and mobile phones.
MAJOR SHAREHOLDERS
ICICI Venture-23% Ajem premji(wipro)-10% ICICI prudential-5%
THE POSITIONING
Low Prices :Subhiksha Positioned itself as Value Retail Chain /Discount Retail Chain. Trust : Subhikshas name inspires trust and its consumers rely on it through all times to deliver. Savings : focuses on the concept of constantly sustainable low pricing
Fund Raising
In 2000 ICICI Venture invested in Subhiksha with 10% stake at Rs15 Cr & raised stake to 23 % by 2004 Subhiksha also raised a 15 Cr debt from the market 2003 - Azim Premji took 10% stake from ICICI for Rs230 Cr 2004 2007 equity of Rs160 Cr, debt of Rs. 345 Cr & bridge loan of Rs.125 cr 2008- raised debt capital of Rs.600 Cr from Enam Securities Ltd, ICICI Ltd & Kotak Mahindra Bank
STRATEGY
Cut price strategy. Focused on the lower & upper middle class. Wal-martstyle- everydaylowprice (510% less than MRP ) Shops are located not on the main road. The catchment area of customers. Informed customers about promotional offers
THE EXPANSION
March 1997 -Opening of the first retail store in Chennai, with 5 lacs Initial investment. March 9914 stores in Chennai June 2000 50 stores in Chennai & ICICI venture joins June 2002 120 stores in whole of Tamil Nadu June 2006420 Stores in other big states in India namely Gujarat, Delhi, Mumbai, Andhra Pradesh and Karnataka. Feb 2007500 stores across country Dec 2007 1000 stores across India October 2008 1600 stores across India