Financial Management of Co-Operative Sugar Industry - a Case Study of Dr. Babasaheb Ambedkar Co-Operative Sugar Industry PDF Download

Author: M. A. Lokhande
Publisher:
ISBN:
Category :
Languages : en
Pages : 12

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Book Description
Indian sugar industry accounts around 20 per cent of the sugar mills and 15 per cent of world sugar production. It has been key driver for rural industrialization. Today, sugar industry is at crossroads having opportunities for growth because of liberalization and challenges of global competition. The financial crisis of 2008-09 was the biggest shock to the global financial system. The collapse Lehmann Brothers and other US firms spread the panic all over the world. Indian economy was not exception and the crisis resulted in to slower industrial growth till date not recovered. Sugar industry in Maharashtra has been facing the problems such as lower capacity utilization, poor working capital management, erratic supply of sugarcane and obsolete technology. The major problems of the industry include irregular supply of sugarcane, increasing arrears due to farmers, deteriorating per hectare yield, high cost of production and lower or negative profit margins as a consequence of all these factors. Most of the sugar mills utilize production capacity below 50 per cent. Inadequacy and irregular supply of raw material, increasing losses and decreasing net worth and increasing amount of sugarcane arrears led to sickness in the industry and closer of more than 100 co-operative sugar mills in the country. In view of this scenario, the researcher has decided to study the financial management of a cooperative sugar industry viz., Dr. Babasaheb Ambedkar Cooperative Sugar Industry from Maharashtra state as a case study. The study has examined short term solvency, profitability and activity position of the unit under the study. The study found that Net worth of the unit had a positive growth whereas the net capital employed indicated a mixed growth trend. Short term solvency position of the unit was found satisfactory. However, because of high cost structure, the profitability position had been negative during most of the years of the study. Having tremendous potential for development of the industry in Maharashtra, the industry needs a new financial and marketing strategical approach competitive edge for sustainability.