Luxury Car Industry The Luxury Term Paper

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The company is an energy firm that is invested in a broad range of energy. Suzlon's core assets include wind farms scattered around the world. Yet, wind farms are mentioned in the article among the assets that the company is seeking to sell. The company cites rapid growth in revenue, which should indicate that there is sufficient retained earnings to pay down the maturing debt, but the latest annual report shows that the company has lost money in the past two years. In the past year, Suzlon has increased the amount of equity on its balance sheet, so seems committed to a program of d eleveraging. It could be that the assets being sold are underperforming, and their sale would not only generate capital but would also allow the company to be more efficient going forward.

It is interesting, though that the company has not chosen to renew the debt. While interest rates in India might be high, borrowing in the West is generally quite affordable and Suzlon has enough business outside of India that interest rate parity can be ignored -- the new loans would be paid with dollars or Euros. The company clearly wants to reduce the amount of leverage it has, perhaps anticipating a general upward trend in interest rates. Or Suzlon could simply want to increase the equity on its balance sheet. Either way, the article does not go into detail about...

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(2009). Luxury car sales keep skidding. Business Week. Retrieved October 30, 2011 from http://www.bmwblog.com/2009/01/19/businessweek-luxury-car-sales-keep-skidding/
Fairclough, B. (2009). Driven to extremes. Wall Street Journal. Retrieved October 30, 2011 from http://magazine.wsj.com/features/the-state-of-luxury/cars/

No author. (2011). India: Luxury car makers in the driver's seat. Thomas White Global Investing. Retrieved October 30, 2011 from http://www.thomaswhite.com/explore-the-world/postcard/2011/india-luxury-car-industry.aspx

Reuters. (2009). Luxury car makers ready to pay for exclusivity. Alibaba.com. Retrieved October 30, 2011 from http://news.alibaba.com/article/detail/cars/100070508-1-luxury-car-makers-ready-pay.html

Suzlon 2010-2011 Annual Report. Retrieved October 30, 2011 from http://www.suzlon.com/investors/annual_result.aspx?l1=6&l2=23&l3=42

Yep, E. (2011). Suzlon to sell non-critical assets. Wall Street Journal. Retrieved October 30, 2011 from http://online.wsj.com/article/SB10001424052970204644504576650743205321796.html

Sources Used in Documents:

Works Cited:

Business Week. (2009). Luxury car sales keep skidding. Business Week. Retrieved October 30, 2011 from http://www.bmwblog.com/2009/01/19/businessweek-luxury-car-sales-keep-skidding/

Fairclough, B. (2009). Driven to extremes. Wall Street Journal. Retrieved October 30, 2011 from http://magazine.wsj.com/features/the-state-of-luxury/cars/

No author. (2011). India: Luxury car makers in the driver's seat. Thomas White Global Investing. Retrieved October 30, 2011 from http://www.thomaswhite.com/explore-the-world/postcard/2011/india-luxury-car-industry.aspx

Reuters. (2009). Luxury car makers ready to pay for exclusivity. Alibaba.com. Retrieved October 30, 2011 from http://news.alibaba.com/article/detail/cars/100070508-1-luxury-car-makers-ready-pay.html
Suzlon 2010-2011 Annual Report. Retrieved October 30, 2011 from http://www.suzlon.com/investors/annual_result.aspx?l1=6&l2=23&l3=42
Yep, E. (2011). Suzlon to sell non-critical assets. Wall Street Journal. Retrieved October 30, 2011 from http://online.wsj.com/article/SB10001424052970204644504576650743205321796.html


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