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Supplement
| HBS Case Collection
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2008
Patel Food and Chemicals Private Limited (B)
by
Felda Hardymon and Ann Leamon
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Abstract
Alok Patel, the founder and chairman of a Gujarat-based, privately held edible oils processor, has hired a CFO and the company is doing extremely well. He wants to add a new plant to process oilive oil, but estimates he will need $20 million. He must decide among financing alternatives: a loan from his local bank, an investment from a private equity firm, or an investment from a hedge fund. Over lunch with his business mentor and friend, a retired ICICI bank director, he explores the pros and cons of each financing strategy.
Keywords: Financial Management;
Growth and Development Strategy;
Financing and Loans;
Investment;
Financial Strategy;
Food and Beverage Industry;
Chemical Industry;
Gujarat;