Risk transfer mathod

Ripple Pharmaceuticals pvt Ltd has installed a manufacturing plant of medicine 6 months back.It had already outsourced its manufacturing. it had per month sales of $1 million in one of the four provinces it was operating.they want to expand and start operations in all the 4 provinces of pakistan , they cinsidered the fact that Doctors give periority to the manufacturing pharmaceuticals, employees feel secure and hence motivated and hence employee turnover will be decreased.
they took a loan of $1.5 million and arranged $ 0.5 Million from internal sources.
now after 6 months of commencing manufacturing their sales is not of that level to support factory and intrest expances.due to which the profits of $.2M it was making turned to loss of 0.1M /month.
in the Directors meating the Risk commeti had estimated that they need further 1 M in the next six months for production to bring companny in the situation of no profit and no loss.and further 0.2 M to bring company in the profit making situation. its highly unlikely that any company or bank will lend them this much amount as they had already pledged all its assests
.company’s over all sale levell is increased to $1.2M/month.
if they dont raise cash the company will go into liquidation.but if they sale their plant and outsource their manufacturing again they will again start making profits of 0.25M/month based on the current sale levels.. due to increase in land prices and inflation the plant can be easily sale in $2M.
they has devolpeed the image of being a manufacturing concern in the market as well as among employees and the benifits they can offer now after the sale of plant to the employees in shape of Insurance cover and increase sallaries means they are not going to leave the company.costmers are also now satisfied.
the high cost of manufacturing due to small amount of raw material purchases means they dont have to pay much extra on third party manufacturing.
the riskk assesmennt commeti assessed that if they dont sale the manufacturing unit it is most likely that they will have to close the buisness.
they decided to sale the factory and out sourced manufacturing and returned the loan as well.. hence company start making profit and the Risk of going concern is removed altogather.
Using TARA . what they have done in ur openion.
in my openion they have transfered Risk to the party they soled factory.
they are enjoying almost all the rewards they can with the manufacturinng unit.
so there are other ways and means to transfer Riskk other than insurance and Govt support.
Dont you think think when compannies outsource some thing they r actually transfering RIsk ? offcoarse it must be in the contract…