PROFITABILITY MANAGEMENT OF SELECT SAMPLE SUGAR FACTORIES OF PRIVATE SECTOR IN ANDHRA PRADESH

commerce and management

The Indian sugar industry plays an important role in global sugar market being the world’s second largest producer, after Brazil, producing nearly 15 and 25 per cent of global sugar and sugarcane respectively. The India sugar industry uses sugarcane in the production of sugar and a maximum number of companies are found in the sugarcane growing states of India including Andhra Pradesh, Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu and Karnataka. At present, there are 538 sugar factories have been set up in India with installed capacities ranging from 1,250 TCD to 6,000 TCD providing employment opportunities to the tune of 1.75 lakh workers and sustaining 2.50 lakh cane-growers upto 2014-15. In India sugarcane is growing in an extent of 51.44 lakh hectors with sugarcane production of 3593.30 lakh tones extracting and output of production of sugarcane providing employment of 1.75 lakh people. The integrated sugar industry (comprising sugar, molasses, alcohol, power and bio-fertilizer) now enjoys monopoly in an annual turnover of around Rs. 90,000 crores (which can go up to Rs. 1,25,000 crores at 32 MT of production) and contributes around Rs. 3,000 crores to Central Government exchequer, by way of central excise duty every year. Nearly 40 per cent of the sugar produced is utilized for manufacture of Gur and Khandasari, sugarcane cultivation is a lucrative enterprise for farmers. Keeping the facts stated above in view the researcher has made an attempts in this to analyse the profitability management efficiency of select private sample sugar factories in Andhra Pradesh by using accounting ratios viz., Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio, Return on capital employed ratio and Return on total assets. The private sugar factories working in different parts of Andhra Pradesh and are selected as sample units for the present study viz., Prudential Sugar Corporation Limited, Nindra, Chittoor District, SNJ Sugars and Allied Products Limited, Nelvoy, Chittoor District, KCP Sugar and Industries Corporation Limited, Vuyuru, Krishna District and The Andhra Sugars Limited, Tanuku, West Godavari District for the period of ten years i.e., 2005-06 to 2014-15.

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