Supply blues hit Indiabulls
Uncertainty surrounding the delay in payments has also led to speculation that co has put the 32-store strong grocery arm on the block. Company denies it vehemently.
By Yamini Dhall & Deepshikha Monga, TNN |
AHMEDABAD/NEW DELHI: Indiabulls��� retail venture seems to be running into supply chain trouble. Indiabulls Wholesale Services, which in December 2007 acquired Piramyd Retail from the Piramals, is now facing an irate lot of vendors who have reportedly not been paid for merchandise worth Rs 40-50 crore. As a result, merchandise supplies to Indiabulls stores has been hit.
Vendors supplying to erstwhile Trumart grocery stores and Piramyd stores claim that they have not been paid for November and December 2007, the period around the acquisition. Indiabulls Real Estate acquired Ashok Piramal group���s 63.9% stake in Piramyd Retail for Rs 208 crore in December 2007.
This is Indiabulls first foray into organised retail. Indiabulls director Gagan Banga denied any problems with vendors, adding: ���There were some vendor and cash problems which we inherited as the business was cash-starved. Most of the problems have been sorted out and we are taking care of our vendors.���
The uncertainty surrounding the delay in payments has also led to speculation that Indiabulls has put the 32-store strong grocery arm (the erstwhile Trumart) on the block.
The company denies it vehemently. SME suppliers to the company, who are facing liquidity crunch due to delayed payments by the retailer, say that it is clearly a post takeover problem. ���The retailer froze all accounts for the two-month period immediately after the takeover.���
Vendors supplying to erstwhile Trumart grocery stores and Piramyd stores claim that they have not been paid for November and December 2007, the period around the acquisition. Indiabulls Real Estate acquired Ashok Piramal group���s 63.9% stake in Piramyd Retail for Rs 208 crore in December 2007.
This is Indiabulls first foray into organised retail. Indiabulls director Gagan Banga denied any problems with vendors, adding: ���There were some vendor and cash problems which we inherited as the business was cash-starved. Most of the problems have been sorted out and we are taking care of our vendors.���
The uncertainty surrounding the delay in payments has also led to speculation that Indiabulls has put the 32-store strong grocery arm (the erstwhile Trumart) on the block.
The company denies it vehemently. SME suppliers to the company, who are facing liquidity crunch due to delayed payments by the retailer, say that it is clearly a post takeover problem. ���The retailer froze all accounts for the two-month period immediately after the takeover.���
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