COMPANY BACKGROUND

A$-$CAT Corp. $($A$-$CAT$)$ was a mid$-$sized manufacturer and distributor of domestic electrical appliances, catering primarily to the price$-$sensitive rural population in India. The firm operated two medium$-$sized facilities in a remote district in Vidarbha, a relatively undeveloped region in Maharashtra, one of India's most progressive states. Rather than compete with large$-$scale operations prevalent in the industry, ACAT preferred to focus on the rural segment. Management believed there was more scope for success within this segment of the market and in the past, this belief had been proven right. A$-$CAT's manufacturing units had been in operation since $1986.$ Currently, the company had annual sales of Rs$6,000,000$ US $$120,000$ and had about $35$ employees.

A$-$CAT manufactured a wide range of electrical appliances for household use, including television signal boosters, transformers, FM radio kits, electronic ballasts, battery chargers, voltage regulators, etc. The company's broad range of products catered to rural, low$-$income customers in and around the district.