Finance - Case Collection

Finance Indian Railways and the Move to Full Electrification: Exceeding the Global Benchmark

The Indian Railways (IR), the country's largest transporter, is considering a plan to fully electrify its network. The move will cut its fuel expenditure by a whopping 50%. However, the project will require a capital investment of INR 350 billion (approximately USD 4.9 billion1). The investment is beyond the normal capital that is available for annual investment, as the IR is not run with a profit mindset and has limited retained earnings. Therefore, the IR has to consider potential financing options. The proposed investment also requires the IR management to overcome numerous operational changes in areas such a rolling stock, crew, usage of fueling depots, training, disposal of usable diesel locomotives, etc. The electric-based platform appears to be where the industry is headed worldwide, and potential future cost savings may also be possible if the IR moves to this platform. The project would make India the first country in Asia to move to complete electrification, establishing it as a pioneer in the rail industry and boosting national pride. It would reduce the country's reliance on imported fuels and help with the nation's balance of payments, thereby advancing its economic agenda. A third non-financial but national objective of the project would be a significant reduction in carbon emissions. The board of the IR is tasked with examining various aspects of the proposed electrification project and deciding whether or not to approve the idea. The case requires students to make a decision as to whether or not the savings are worth the investment and resource allocation.

Learning Objectives:

This case will help students- - Understand the costs and benefits, both direct and indirect, that are part of any comprehensive capital budgeting calculation - Go beyond simple cost-benefit analysis and consider national policy and societal outcomes - Evaluate the considerations around the adoption of one technology over another and the related changes, such as the potential impact of this technology on government priorities - Utilize an opportunity to conduct a net present value (NPV) analysis
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Philip C. Zerrillo,

David J. Sharp,

Samriddhi Mukherjee,

Rohit Kumar Kedia

Published: Sep 23, 2021

₹399.00

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Finance Merlion Investments: Investing in Collectible Assets

The case describes a fictitious family office (FO), Merlion Investments, and the efforts of a junior family member, Leong Yew Kong, to convince his uncle and his grandfather to make an allocation to collectible assets. Similar to many family offices, Merlion Investments pursues a relatively conservative investment strategy; only 20% of its assets are allocated to riskier opportunities designed to grow the family's wealth. Yew Kong, who has worked diligently under his uncle's guidance for years, wants more responsibility. After doing his own research, Yew Kong believes he has identified an opportunity to carve out his own niche in the portfolio by investing in collectibles. The case is constructed to illustrate the real-world challenge of investing in non-traditional assets, in this instance, collectibles. Background information on five different collectible assets is provided in the case that students can use to discuss a) whether his uncle, Tan Chee Keong, and Merlion Investments should agree to Yew Kong's suggestion, b) which collectibles to invest in and through what vehicle, c) how much capital to allocate, and d) what kind of skills or expertise the team would need to successfully manage these investments.

Learning Objective

The case illustrates the real-world challenge of investing in non-traditional assets. The case provides an introduction to family office investing and describes five collectible assets representing extremely different opportunities. Students will develop an understanding of important fundamental tradeoffs in asset allocation, and how individual capabilities, interests, and interpersonal issues affect investment decision making, especially in a family office context.

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Philip C. Zerrillo,

Matthew Dearth

Published: Sep 2, 2020

₹399.00

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Learning Objectives:

Learning Objective