Case Name :      Valjibhai Stones

Authors :           Debashis Sanyal, Smita Mazumdar

Source :             Ivey Publishing

Case ID :            W14101

Discipline :        Finance

Case Length :    11 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Valjibhai Stones, a supplier of quality stone chips in India, has been approached by a multinational company that needs a reliable supplier of quality stone chips for the next eight years. Accepting the order would require a capacity expansion to produce high-quality aggregate solely for the multinational company and at the cost of foregoing all of its existing business. If the offer is accepted, the company would earn substantial revenue for eight years, but would then need to seek fresh business in a highly competitive market.