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2 comments
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last activity : 07 06 2010 20:18:04 +0000
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The amazing success story of Fabindia - Harvard School case study!
The investment by these four categories of investors provides the paid-up capital. The company promotes the sales of its artisan community to Fabindia, which is the principal buyer. Eventually the companies will sell to other buyers, too. Haryana and Faridabad have already started independent sales.
After expenditure and tax are deducted from the principal sale value for the year, the year's profits before and after tax are worked out. Based on this, the valuation of the company and its enhanced share value can be calculated.
The artisans gain in many ways. The value of their shares goes up. They earn dividends when the company is in a position to declare them. Eventually the company will try and offer loans to the artisans, arranged through banks.
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