Lets write the orbituary of Subhiksha

Subhiksha, the food chain is dead. Another idea, though not a unique one, laid to rest or should be laid to rest on the temptation of fast growth, high valuation model. The model of greed which so many of the Indian businesses pursued. Some were able to survive while most landed themselves in trouble.

Were ICICI’s executives on Subhiksha’s board sleeping?

I recently read that Renuka Ramanathan and Rajeev Bakshi, both senior executives of ICICI ventures, were on Sibhiksha’s board. Also, according to CEO of Subhiksha, ICICI was in complete control of the Board with the CEO incharge of day-t0-day activities. Now it seems that both these ICICI executives have resigned fearing lawsuits.

Growth with debt-Keep your fingers crossed

I was surprised to note that Tatas have also borrowed heavily by pledging its shares. Growth with too much borrowed money is very risky. Public invests in Tata companies thinking they are financially sound without realizing that they have borrowed heavily. When I saw Tatas going in for huge acquisitions like Jaguar/Rover and Corus, I was concerned that even if one of them landed in trouble, Tatas could get into serious trouble. With the recession and financial crisis, trouble has landed in multiples. The interest of the common shareholders in the Tata companies could suffer.