1. The Subhiksha Story PRESENTED BY: Manendra Shukla

2. THE SUBHIKSHA STORY SUBHIKSHA SUBHIKSHA = PROSPEROUS SU + BHIKSHA = BEST WAY TO BEG MONEY SU + BHIKSHA

3. THE SUBHIKSHA STORY INDIAN RETAIL INDUSTRY Retailing as an activity than an industry The retail sector is the second largest employer after agriculture. Organized retail market will generate jobs for 12 million people Fast growing Indian middle class with more than ever disposable income

4. THE SUBHIKSHA STORY ORGANIZED SECTOR UNORGANIZED SECTOR 6% 94% ORGANIZED RETAILING IN INDIA

5. THE SUBHIKSHA STORY Entrance of Subhiksha in market Indian retail icon R. Subramaniam Wanted to be big fish of the pond wanted to be early entrant in the market He selected retailing as a business .

6. THE SUBHIKSHA STORY

8. THE SUBHIKSHA STORY STRATEGIES FOR THE SUCCESS 1. EDLP STRATEGY OF WAL-MART ( Eliminating Distributors for Lesser Price ) Wholesaler/dealer elimination Bulk purchases directly from manufacturers or stockiest qualified for deep discounts Spot payments against delivery to get cash discounts

9. THE SUBHIKSHA STORY MANUFACTURER DISTRIBUTOR WAREHOSE STOCKIST RETAILER CUSTOMER SUPPLY PAYMENT SUPPLY SUPPLY PAYMENT PAYMENT PAYMENT SUPPLY PAYMENT SUPPLY MFD. COST PRICE +MFD. PROFIT +stockiest PROFIT +warehouse PROFIT +Distributor PROFIT +RET. PROFIT = MRP = BELOW MRP

14. THE SUBHIKSHA STORY * Rs in Crores 330 2305 833 financial performance 281 218 Net income growth

15. THE SUBHIKSHA STORY Operating expenses Net income Debt YEAR 2003 2004 2005 2006 2007 2008 NET INCOME 212 218 281 330 833 2305 OPERATING EXPENSES 203.4 211 275 324 825 2945 DEBT 16 17 21 80 234 750

16. THE SUBHIKSHA STORY THE TROUBLE BEGINS

17. THE SUBHIKSHA STORY Nothing succeeds like a success Nothing fails like a failure. Unplanned Expansion???

18. Unplanned expansion THE SUBHIKSHA STORY Indian Retail Growth Subhiksha Expansion Growth Recession Factor If we are failing to plan, we are planning to fail.

19. THE SUBHIKSHA STORY IDEAL OK BAD WORST PLAN A PLAN B PLAN C PLAN D PRAGMATIC RISK SCENERIO PLANNING F A I L

20. THE SUBHIKSHA STORY

21. THE SUBHIKSHA STORY SUPPLY CHOCKED

22. THE SUBHIKSHA STORY LACK OF WORKING CAPITAL SUPPLY CHAIN MANAGEMENT H.R.POLICIES OPERATIONAL INEFFICIENCY THE MAJOR ISSUE

23. THE SUBHIKSHA STORY SUPPLY CHIAN MANAGEMENT LACK OF WORKING CAPITAL UNDERMINING REVENUE CUSTOMER RELATIONSHIP MANAGEMENT STOCK OUT

24. THE SUBHIKSHA STORY H.R.POLICIES LACK OF WORKING CAPITAL UNDERMINING REVENUE CUSTOMER RELATIONSHIP MANAGEMENT MOTIVATION

25. THE SUBHIKSHA STORY OPERATION INEFFICIENCY LACK OF WORKING CAPITAL INCREASE IN OPERATIONAL COST UNDERMINING GROSS PROFIT