Case Name :      Husk Power Systems: Financing Expansion

Authors :           Elena Loutskina, Manoj Sinha, Chip Ransler

Source :             Darden School of Business

Case ID :           UV5625

Discipline :        Finance

Case Length :    20 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Husk Power Systems, a young but widely celebrated firm based in India, needs $1.5 million to $2.5 million of expansion capital to grow quickly beyond the small footprint it had established in northeast India. It is a successful green energy enterprise that aimed to provide electricity to millions of rural Indians in a financially viable way. With 10 “mini power plants” that use rice husks as a fuel source and a presence in 25 isolated Indian villages as of April 2009, the company’s goal was to reach 350,000 to 400,000 consumers in 400 villages by the end of 2011. It is offered a convertible note financing structure by a cleantech private equity firm and needs to assess whether it suits the company’s and founders’ interests.