Rajeev Samant, founder of Sula Vineyards, was a pioneer in the nascent Indian wine industry. After selling off a minority stake to private investors in 2005, the funds for the expansion of the winery, Rajeev mid-2007 to raise again faced the challenge to decide whether, and if so, in what amount to grow to meet Sula predicted rapid growth in demand for Indian wines. He developed financial projections for Sula Board present. Rajeev now needs to decide on the appropriate plan to prese … Read more »

Rajeev Samant, founder of Sula Vineyards, was a pioneer in the nascent Indian wine industry. After selling off a minority stake to private investors in 2005, the funds for the expansion of the winery, Rajeev mid-2007 to raise again faced the challenge to decide whether, and if so, in what amount to grow to meet Sula predicted rapid growth in demand for Indian wines. He developed financial projections for Sula Board present. Rajeev needed now in order to plan appropriate to its board as well as the expected level and sources of funding needed to decide present to support this plan. In the search for new resources, Rajeev was mindful of the trade-offs inherent in new equity financing, which could lead to a further dilution of ownership, compared to new debt financing to place the additional claims on future cash flows and increase would Sula financial risk.
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from
Armand Gilinsky, Jr.,
Raymond H. Lopez
Source: North American Case Research Association (NACRA)
24 pages.
Release Date: 15, July 2008. Prod #: NA0054-PDF-ENG
Sula Vineyards HBR case solution

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