As it has been given in the facts that the company has imported plant & machinery from UK,

which would have required heavy initial investment , the company might have raised money
through issue of shares .As base of the company is based on innovation and creativity , so it also
have the option to finance its venture through venture capitalists, as these venture capitalist
look for riskier projects to finance them and the textile business was a emerging and riskier
business at that time. During the initial phases of the business the owners might not have been
able to raise major part of their capital through equities because the business focus is in new
direction and the people might not have confidence to invest in that though they have invested
because of goodwill of ‘Aditya Birla Group’. At that time company would have raised money at
higher rate of interest in the form of debt, later on with the passage of time and the growth of
the company this debt amount would have been converted into shares.

The company has grown significantly and now it has the installed capacity of 415 TPD which
indicates that the financial base of the company has increased tremendously , once the
company has gained the dominant position in the market , now it would be easy for them to
raise money from the market and increase their potential .

The company has significant strength in R & D moreover the pulp and fiber business contributes
greatly to National Exchequer and foreign exchange reserves of the country so it can raise the
money from the government banks and institutions and it would also have the power to
negotiate on the terms with the government.

As the company has to penetrate the stagnant global market, it can enter into new emerging
markets through acquisitions, joint ventures, it can also raise money through GDR’s , FDI.
Acquisitions and joint ventures would be better options to penetrate them selves in
international market as it will enable them to control their cost burden and thereby offering
their products at lower prices and lateron to expand their position they can go for mergers and
takeovers by acquiring weak companies .