Zero-Debt Start-Up in Capital-Intensive Solar Industry: A Case Study on Rays Experts

Nishtha Gupta (), Monika Singla () and Udit Agrawal ()
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Nishtha Gupta: Indian Institute of Technology Delhi
Monika Singla: Indian Institute of Technology Delhi
Udit Agrawal: Indian Institute of Technology Delhi

Chapter Chapter 56 in Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy, 2017, pp 651-662 from Springer

Abstract: 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.

Keywords: Zero-debt start-up; Entrepreneurship; Indian solar start-up; Renewable energy; Capital structure (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/978-3-319-43434-6_56

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