Company Background: ABC Manufacturing is a newly established manufacturing company in India that produces specialized machinery for the oil and gas industry. The company is in a city that is already home to a few large and established players in the same industry. The company has been established with the vision to offer high-quality machinery at an affordable price point to the market.

Challenges and Opportunities: The manufacturing industry is capital-intensive and requires significant investments in machinery, equipment, and skilled personnel. Being a new player in an oligopoly market, ABC Manufacturing faced several challenges in raising funds for its operations. The company had to compete with established players who already had a strong presence in the market and had access to traditional sources of funding. To overcome these challenges, ABC Manufacturing had to adopt innovative measures and focus on its unique strengths.

Innovative Funding Model: ABC Manufacturing developed an innovative funding model that helped the company raise capital and establish a strong financial foundation. The funding model involved a mix of traditional and non-traditional sources of financing, including:

• Equity Funding: The company raised equity capital from angel investors and venture capitalists who saw the potential in the company's vision and business model. The equity funding helped the company establish a strong financial foundation and provided it with the necessary working capital.
• Bank Financing: The company approached several banks for financing and received a favorable response from a few of them. The company obtained a term loan to finance the purchase of machinery and equipment and a working capital loan to meet its day-to-day expenses.
• Trade Credit: The company also utilized trade credit from its suppliers to finance its inventory and purchase raw materials. This helped the company manage its cash flow and reduce its reliance on external financing.

Accounting and Finance System Setup: ABC Manufacturing set up a robust accounting and finance system to track its financial transactions and manage its funds effectively. The company established a dedicated finance department that was responsible for all financial activities, including bookkeeping, budgeting, and financial reporting. The company also implemented an ERP system that integrated its financial data with its operations data, enabling it to make informed decisions based on real-time information.

Results and Impact: Thanks to its innovative funding model and accounting and finance system setup, ABC Manufacturing was able to establish itself as a strong player in the market. The company was able to produce high-quality machinery at an affordable price point and quickly gained a reputation for its quality and reliability. The company's financial performance was strong, with revenue and profits increasing steadily over the years. The company's investors and creditors were satisfied with the company's performance and provided additional funding as needed. The company's success helped it establish a strong foothold in the market and gain a competitive advantage over its peers.