Subhiksha, the Chennai-based India’s largest (in terms of numbers) supermarket value chain, according to an Express Buzz report, has asked some 700-odd employees from its 97 stores in Chennai, to pick up groceries in lieu of their outstanding dues against non-payment of salaries.
Most of the employees, including two of its Vice Presidents, according to the Buzz, have not been paid their salaries for the past two months.
“In October, we did not receive our salaries. In November, when the salaries were not credited till the 20th, we asked the management about it. The company told us it was facing a financial crisis and asked us to take commodities from the shops,” said Mithun Banerjee, a management graduate from Kolkata, who had joined the company at Kolkata in July, 2007 and was transferred to Chennai in August, 2008.
Even this offer has created a piquant situation for the employees as they find store shelves almost empty as there are hardly any goods left to pick. The reason for disappearance of goods from the shelves is said to be the stoppage of supplies by many vendors, including the country’s largest FMCG player Unilever. These vendors, according to reports, have not been paid dues against earlier supplies.
R. Subramanian, founder and managing director of the company, had earlier attributed low inventories to introduction of new software package (SAP), saying, “Inventories are a function of rationalisation. In fact, we are deliberately reducing inventories as we are in a transition to SAP (a kind of software). We expect all our stores to convert to SAP by next month.”
Subhiksha, according to unconfirmed reports, is believed to be planning to close some 50 per cent of its stores in the city, and restarting operations by January.
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15 responses so far ↓
Tarun Chadha // Dec 9, 2008 at 8:26 am
If companies do not have enough budgets to start the project they should not start it only. In life it is not just the grocery that a person needs to live there are some other things like Money a person needs for run a Home there should be a criminal case against the company for cheating with the employees as now a days life runs only with cash & not kind. I hope this message goes to the top management of Subhiksha.
Dharnendra Doshi // Dec 9, 2008 at 9:37 am
Bad news seems to be invariably following Subiksha since sometime now….but this one is a real shocker if it’s true.
I guess RS plans of selling stake to MNC’s has hit a roadblock due to the worldwide cash crunch and he is stuck with lot of non performing stores. Adding to the woes lot of vendors seem to have stopped supplies.
Makes one wonder where is the 240 crores pumped in by Azim premji some time back. RS should rather use that money in paying due salaries and bringing back confidence amongst it’s employees and vendors.
aparajita // Dec 9, 2008 at 10:32 am
The money invested by Azim Premji has gone to ICICI Ventures and not to Subhiksha. 10% equity stake was bought by Premzi’s company from I-Venture. ICICI is lucky to have partly diluted its holding in right of time. It probably holds 14% or 16% more of the same.
jay // Dec 9, 2008 at 3:38 pm
This is one of the worst situation subhiksha is in. I came to know through my friend that they have not got salary in bombay past two months.In fact even the higher official people does not know whats going on,as when they had gone to head offc. for their salary.If RS says that he is implementing sap why he cant he pay their staff salary, for SAP you required good hell lot of money to invest.”stop fooling around” as lot of your staff are in trouble.. …. think!!!!
Dharnendra Doshi // Dec 9, 2008 at 3:47 pm
guess ICICI were really lucky to have diluted 10% at that time…not sure what valuations await them in the near future.
Also, any chances of picking up money from the market (to pay dues to employess/suppliers) have also gone for a indefinite suspension considering the volatile market and liquidity problems today
Kuttan // Dec 9, 2008 at 3:56 pm
You Subrahmanian, you are making us fool….What kind of cheating is this? You are going to answer to the suicides of your employees. Do u ever thought how your employees will live since they all came from well established companies. In kerala too subhiksha has to pay salaries for last 2 months. You pay salary first then” Talk” you Mr.Subrahmanian. We are planning to go to Labour court if you are not paying pending 2 months salary within 5 days.
Wish you all the best Mr.Subhramanian.
Mani M // Dec 9, 2008 at 4:39 pm
Hey Mr: Subramanyan…… give the pending salary to your employees… They are faithfully working for Subhiksha but You are cheating them. This is not acceptable. If you are not giving salary , we will approch labour court.
Gaurav Dua // Dec 9, 2008 at 10:54 pm
Hey Guys !
This brings me back to the old world ways of doing business which first stood firm ground before taking ….big gigantic leaps. Looking at the situation all around including Jet airways, subhiksha, and the likes I can definitely say that all of us who wanted to start running before we could walk have fallen with a thud and I definitely believe it is for the better. We take our rise to superpower status more emotionally than pragmatically, ignoring hard facts, vulnerabilities and risks that we face in a global economy. There is a long and hard road to the top….but somehwere with the little positive accomplishments which still are a far cry for the majority of 1.125 billion people, we start dreaming about everything positive happening for India in a jiffy. We are yet to see the kind of highs in terms of per capita consuptions before we start getting hallucinated about being the most strong and insulated economy of the world.
Arpita // Dec 9, 2008 at 11:54 pm
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vinod // Dec 15, 2008 at 4:09 pm
I think subhiksha shuould shut down their 50% store if they are unable to pay salaries to their employee.
rajesh // Dec 17, 2008 at 12:27 pm
Hey,what is this, he is only making fool of public
rs subharmanyam is an over smart person. he is only regularly giving these statements bcoj employees always do their work with blind hope. he is a xxxx, he hasn’t paid last 3 months salary,store rents etc
he is only making false assurances. we r hearing these xxxx assurances since last 6 weeks
but he xxx didn’t do anything for employees or company
Ram // Jan 19, 2009 at 7:13 pm
Hi,
The situation is not only in Chennai but all over India affecting badly its employees financially and distrubing their career.
Goods cannot be taken instead of salary as the stores are getting empty, the reason may be introducing of SAP or anything.
i only hope we get the backlog salary of the employees.
Kindly think about the valuable employees who have rendered their service to your compnay and take necessary action as soon as possible.
elvis bhatia // Apr 9, 2009 at 11:23 am
AS this guy is pass out of IIM ahemdabad, i think he is pretend himself as smart manager, but he has taken name of iim ahemdabad in gutter, and guys there should be some provision in the indian constitution that this type of people will be given imprisonment that aso without bail, how much mental tension he has created among employees, he should hang todeath, not only he any business man if they wana start business they have to show their asset to govt of india, so later they cant fool among public, i think manmohan singh our repspected primeminister should take some steps to save people instead of concentrating on nuclear deal.
vir sharma // Jun 28, 2009 at 12:34 am
Hello R S are you happy now, How much you earned now ?? well ………….. you play very smartly with your faithful emloyee . If you ever try to open yuor single outlet or store in delhi I assure you I will be one who will donate as much as amount of money to your employye bcz……… we know that you won’t be able to pay them . Shame on you . If you are a man words Plz pay salary to your staff of all over india.Otherwise one day you have to answer someone.
kedia // Aug 22, 2009 at 5:47 pm
Yes, the entire 12000 personel (on pay scales and off rolls) are wrong, false, xxxxx, xxxxx, xxxx … that they haven’t got salary from nov 2008, and the two salary cheques given by company in feb bounced, the offices closed down, the mobiles went out of communication, the top bosses resigned, vendors and suppliers staged dharna, kidnapped few people, landlords took back properties, some employees carried away unsold material to home, some even sold of infrastructure material, advertising companies filed case for pending payments… PF offices are totally blank about PF payments, top brass are answerless, out of communication, totally hiding in dark, ICICI Ventures had already washed off its hands in affair of the company, Azim Premji has taken company to the court, the auditors are at receiving end from governement agencies,,,,,
all these are lies, damn lies… the only truth is the Mr. RS is clean, the company is clear, their is no problem..
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