Commercial Engineers & Body Builders Co Ltd: Valuation of New Plant Using Real Options Technique

ICMR HOME | Case Studies Collection

Case Details:

Case Code : FINC066
Case Length : 14 Pages
Period : 2005-2009
Pub. Date : 2011
Teaching Note : Available (23 Pages)
Organization : Commercial Engineers and Body Builders Co. Ltd (CEBBCO)
Industry : Manufacturing (Railway and Engineering)
Countries : India

To download Commercial Engineers & Body Builders Co Ltd: Valuation of New Plant Using Real Options Technique case study (Case Code: FINC066) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

» Finance Case Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Please leave your feedback

<< Previous

"A lot of robust growth in our industry."¹

- Ajay Gupta, Executive Director of Commercial Engineers & Body Builders Co., Ltd., on the railway and commercial vehicles industry segment, in 2010

"Real options not only provide as accurate accounting of this flexibility value but also indicate the conditions under which executing certain strategies become optimal."²

- Jonathan Mun, author, Real Option Analysis, Tools and Techniques for valuing Strategic Investments and Decisions

Commercial Engineers & Body Builders Co Ltd: Valuation of New Plant Using Real Options Technique

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies

In 2010, Commercial Engineers & Body Builders Co. Ltd (CEBBCO) decided to establish its sixth plant in Madhya Pradesh (MP), India with its focus on the railway segment. About the growth and profitability of this segment, Ajay Gupta (Ajay), Executive Director, said, "The railways is a much more profitable business for us because it is more like an EPC [Engineering Procurement Construction] work whereas commercial vehicles is pure manufacturing the margins are always better in EPC and that is what we enjoy a much better margin in railways."³

Commercial Engineers & Body Builders Co Ltd: Valuation of New Plant Using Real Options Technique cont... - Next Page>>

1] Interview, "A Lot of Robust Growth in Our Industry," The Economics Times, October 18,2010.
2] Real Option Analysis, "Tools and Techniques for valuing Strategic Investments and Decisions", Chapter-6, page no. 150.
3] Interview, "A Lot of Robust Growth in Our Industry," The Economics Times, October 18, 2010.

Custom Search

Marketing Financial Products
Textbooks Collection

Case Studies in Finance Volume-IV
Work Book - Rs. 750
Workbooks Collection

Case Studies in Finance Vol III

Case Study Volumes Collection