I should appreciate your thoughtfulness of putting up such an appropriate case that is relevant to the current market trends.
Yes, SIF should utilize the current market trends in expanding itself at a quicker pace.
Here is my brief view on this case:
1. Raise funds through the IPO in Indian market as there is increase in the confidence level of the investors (FII%u2019s) in the Indian economy%u2019s growth and policies. Raise the IPO issue for three purposes: a. Pay off the current liabilities b. Loans c. Bring down the current liabilities d. Expansion plans for the US market
2. Expense analysis to be done to minimize the current expenses and use them to acquire newer technologies that could bring down the cost of production and sales
3. Going global is very a good idea of expanding SIF a. They have an established brand in India which could be used to acquire licenses b. Look out for Mergers & Acquisition opportunities to optimize its expansion plans, which is an acceptable avenue to enter an overseas market. Take the case of Renault and Mahindra merger as a recent example c. Management is confused and undecided about which one of the overseas market to focus upon. Apart from Krishnan%u2019s plan to enter US market, it opened up two other markets like UK and Asian markets. Therefore SIF should take the assistance of well known research firm for the market study and analysis to take an effective steps towards the responsive market d. Raw materials could be exported to its partner
