Abstract
The objective of this chapter is to present the case of a young entrepreneur from India. Rahul Gupta is the founder of Rays Experts, a solar energy entrepreneurial venture. The solar energy sector, according to a study by AT Kearney (Unni et al. Solar power and India’s energy future (Publication). Retrieved December 31, 2015, from ATKearney website: http://www.atkearney.in/documents/10192/692844/Solar Power in India—Preparing to Win.pdf/b6b34499-8285-4813-9d66-ecdc293a8537, 2013), is slated to become worth billions of dollars over the next 8 years. It is a clean source of energy that provides not only a fillip to employment and economic growth but will also never run out. When only very few start-ups grow in the infrastructure sector in India, Rays Experts is giving large solar plant ventures a run for their money in just 2 years. Aspects related to the unique capital structure (it has no long-term debt on its balance sheet), financial management (playing with fixed costs), and unique business model are presented and analyzed in this case. Accounting ratio analysis has been used as a tool to understand company’s financial strength. In a country like India that is still developing a successful entrepreneurial venture like Rays Experts, with no debt on its balance sheet, would provide very useful learning in terms of the methodology adopted for starting a successful venture with organic growth in the capital-intensive industry. It also sheds some light on the problems that a start-up can face in case of absence of external funding or debt.
When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.
Henry Ford, founder of Ford Motor Company.
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Gupta, N., Singla, M., Agrawal, U. (2017). Zero-Debt Start-Up in Capital-Intensive Solar Industry: A Case Study on Rays Experts. In: Benlamri, R., Sparer, M. (eds) Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-43434-6_56
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