TY - JOUR

AB - Subject area Financial management, corporate finance, strategic management,

managerial accounting and project management. Study level/applicability The case is
suitable for courses such as MBA, Bachelor level business courses (in finance,
business strategy) and training programs for working executives. Case overview The
case study deals with financial and strategic appraisal of a unique coal-to-liquid
project. India imported about two thirds of its crude oil requirements resulting in
huge outflow of precious foreign exchange. As a result, it became necessary for the
country to look for alternative sources of energy. The coal-to-liquid (CTL)
technology of coal gasification offers a credible alternative source of fuels as
proved by Sasol of South Africa. The Government of India short-listed Global
Synfuels Company (name changed) as one of the selected few companies to build a CTL
project. While the project is strategically important to the company and highly
desirable for the country, there are serious doubts about the commercial viability
of the project because of which the company is in dilemma whether to go ahead with
the project. The case study presents this decision dilemma in a very interesting
way and will be useful for teaching courses in corporate finance and strategic
management. Expected learning outcomes The case can be used to engage participants
to make a SWOT analysis for a new business opportunity, discuss environmental and
financial issues facing a company, use DCF techniques to evaluate the project
viability, carry out scenario analysis of the project to the changes in variables
as well as challenge the participants to generate strategies for the success of a
new project. Participants would also develop a better understanding of:
environmental issues involved in CTL projects and new technologies to deal with
such issues; and the employment impact of large projects such as the CTL.
Supplementary materials Teaching notes are available; please consult your librarian
for access.
VL - 2
IS - 8
SN - 2045-0621
DO - 10.1108/20450621211306575
UR - https://doi.org/10.1108/20450621211306575
AU - Ahuja, Narender Lal
AU - Agarwal, Sweta
PY - 2012
Y1 - 2012/01/01
TI - Global Synfuels' financial and strategic appraisal of a coal-to-liquid
project
T2 - Emerald Emerging Markets Case Studies
PB - Emerald Group Publishing Limited
SP - 1
EP - 10
Y2 - 2021/11/07
ER -