Supplement | HBS Case Collection | March 2008

Patel Food and Chemicals Private Limited (B)

by Felda Hardymon and Ann Leamon

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;

Citation:

Hardymon, Felda, and Ann Leamon. "Patel Food and Chemicals Private Limited (B)." Harvard Business School Supplement 808-143, March 2008.