Founder of Sula Vineyards, Rajeev Samant, was a pioneer in the nascent Indian wine business. After selling off a minority equity stake to private investors in 2005 to raise capital for growth of his winery, Rajeev in mid of year 2007 again confronted the challenge of deciding whether or not and if so, at what rate to grow Sula to fulfill predicted rapid growth in demand for Indian wines.
He developed fiscal projections to present to Sula's board. Rajeev needed to decide on the plan that was appropriate to present to his board along with sources of capital needed to support this plan and the hoped-for level. In seeking new capital, Rajeev was aware of the tradeoffs inherent in new equity financing, which could lead to a further dilution of ownership control, versus new debt financing, which would put additional claim on future cash flows and augment Sula's financial risk.
Sula Vineyards case study solution
PUBLICATION DATE: July 15, 2008 PRODUCT #: NA0054-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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