What went wrong with Subiksha?

Recently, Subiksha retail store was in news for wrong reasons - they went down, closed down all their shops (1500 or so) and facing a crisis for survival. It would take some time to ascertain whether Subiksha can bounced back - but it is to take some more time !

Background

Subiksha was started way back in 1997. They had 50 stores by mid 2000. They have grown to 1500 odd shops in 2008 across India. Turnover of the company was approximated Rs.2300 crore in 2008.

Retail industry operates on wafer thin margin of around 6-9%. Hence, operational efficiency could be a real winner.

What went wrong?

Simply put, asset liability mismatch. Meaning of it...explanation as follows:

One needs to spend certain amount as fixed cost (like rent, electricity, salary), one needs to have working capital for buying goods, storage, distrubition etc.... this can come with certain period of credit say 30days or so., but due needs to be paid regularly to avail credit facility.

One needs capital for expansion plan i.e from 50 stores to 1600 stores !

Promoter keeps negotiating for further capital., and rotate the money of various vendors, partners - at one stage goes out of steam and fail to meet the financial commitments !

Why tamilians like gundu actors?

I am puzzled. Generations are changing. But tamilians always liked some gundu female actors to quote a few like Jayamalini, sri priya, anuradha, shakeela, kushboo and now Namitha !

Personally, i am not fond of them. I dont feel they are glamorous. Any idea why general public loves them? pls let me know.

DMDK - vijaykanth's seat negoation

Another imaginary interview - dmdk vijaykanth's seat negoation:

Vijaykanth with MK Stalin's representative:

dmdk: we need 15 seats...
dmk rep: for lok sabha or assembly?
dmdk: pls do not make a joke out of it. we have 8% of votes
dmk rep: national party like congress is in our alliance. if we give 15 lok sabha seats to you, what will be left?
dmdk: but we bring you winning votes
dmk rep: let us see, i cant commit.

Round 2 with Ghulam Nabi Azad

dmdk: sir., we need 15 seats...
azad: u really mean it? this is not vegetable market to end at 2 seats from 15 seats. we are matured politicians, pls make some sense
dmdk: we have 8% of votes., so we think, we can be a winner
azad: i can give you one seat in king fisher airlines at 2pm to chennai flight. Pls take it and go !!!

Round 3 with AIADMK Chief

dmdk: madam, we need 15 seats...
JJ: pls introduce yourself
dmdk: what?
JJ: pls loot at reality. if we accept into our alliance itself, it would be a great deal
dmdk: what?
JJ: pls have some water !

Satyam's suitors

Lot of companies, private equity players have given expression of interest for Satyam. L & T, Tech Mahindra and couple of more players could fight until end. Rest of names could turn out to be passive players.

Some how, i feel the list lacks punch and I do not see major fight happening for take over. or the fight would be restricted to 2-4 players maximum. Hence, this would not result in better price escalation. This could affect the prospects of 20% open offer for investors who were hoping exit for better price.

TNEB in major loss

TNEB (tamil nadu electricity board) reported to have made 6000 crore loss. It had 120crore odd profit in 2003 and turned to a bad shape over last 6-7 years.

Power cuts left industries clueless and left a bitter taste in people's mouth.

Additional power procurement by TNEB from all over India created such a huge hole in its packet. But they are sounding helpless and no turn around plan in sight so far.

Units in tamil nadu known for its efficient management. But no more !

Such a sorry state

India has never seen such a sorry state of affairs for the main political parties such as Congress & BJP facing in the hands of regional parties !

BJP got dumped at Orissa, Congress got dumped at UP in pre-poll alliances.... Whether the rise of 3rd front is a myth or not would be known by mid may. Looks like BJP needs a miracle to form the government.

How many of you are ready to face Mayawati as PM?

Impact of Kuthu Songs

Impact of Kuthu Songs

Our TV had conducted a recent study on 4000 people across the people between the age of 10 to 40 on the impact of kuthu songs. We found out, the youth wanted to dance to the kuthu songs in their homes, theatres etc. Where as, the age group of 30 to 40 was little bit different. They were not very appreciative of the music and they claimed they had no choice but to listen and dance to kuthu songs. Every tamil movie dumps people with atleast 3 kuthu songs and teases the listeners over the last 10 years.

People are shying away from emotions as numerous sacrifice, emotional calls given by Mr.Karunanidhi getting ignored by dancing folks.

...This is Vijay Ganesh, reporting from Chennai, for Accessstreet.