The Situation of a Company Hanson Private Limited Assignment

The touch of a Company Hanson Private Limited - Assignment ExampleThe biggest issue HPL faces atomic number 18 regarding the size of the investment. The troupe has never made such a handsome investment in a single mould at one go. This would practically stall investments into all other projects in the pipeline for the medium term. Hence, the ships smart set is not in a position to afford any failure in this project.The retail collaborationist is willing to agree to a 3-year contract only. However, with such a large investment, there is a happen of not getting the money back within 3 years. It is possible that the products fail or are rendered obsolete at the end of 3 years.The company faces a risk of the debt trap. Right now, HPL maintains a super favorable debt position. For adding new capacity, there are constraints in raising money through equity and close all the financing will have to be done through debt. This raises the risk exposure of the company enormously.Hanson manufactures private cross out products in the personal care space where the competition is very intense. A large number of branded and non-branded companies are vying for a limited shelf space. Hanson already covers 28% of the private tick off market in personal care space. Therefore, there is a limit to the scope of further acquiring the market share.The personal care market volumes have increased less than 1% in the other(prenominal) 4 years. The marginal growth (1.7%) has been largely driven by the price increases. However, one of the biggest USPs of private label products has been their low prices as compared to the branded ones.