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Rudra Industries: Bidding for Generator Leases

Sunil Gaur; Anshul Jain;

商品編號:W25653
出版日期:2022/02/24
再版日期:2022/02/24
商品來源:
商品主題:Finance
商品類型:Case (Field)
涵蓋議題:energy;fuel;COVID-19;lease;bid price;free cash flow to equity;FCFE;return to equity;RoE
難易度:4 - Undergraduate/MBA
內容長度:8 頁
地域:India
產業:Real Estate and Rental and Leasing;
事件年度:2020

In April 2020, Rudra Industries and Services Private Ltd., a diesel generator product and service provider in Uttar Pradesh, the largest state in northern India, was facing a dilemma. Diesel generators (DGs) were heavily used by telecommunication companies to provide uninterrupted power supply to their towers, despite frequent power outages. However, consolidation in India’s telecommunication industry had led to stagnation in the company’s core business. To maintain a continuous flow of income, the company was considering a business expansion to leasing diesel generators to clients. The company was asked to prepare a bid proposal for leasing 100 DG sets to a local bank with numerous branches across the state. What factors would influence the pricing estimates in the bid? How should the company finance the purchase of generators that will be leased out to the client? How could the pricing estimate be calculated to ensure the project would be profitable? Should the company even consider entering the leasing sector, considering recent reductions in power outages and increasing diesel prices?

教學手冊:W25654;
補充材料:W25655;