BUSINESS PERFORMANCE OF A PRODUCER COMPANY IN MADHYA PRADESH
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Date
41240
Authors
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Journal ISSN
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Publisher
University of Agricultural Sciences GKVK, Bangalore
Abstract
Producer companies (PC) have been promoted in Madhya Pradesh under the
District Poverty Initiative Project (DPIP) to alleviate poverty. A case study of the
Rewa Crop Producer Company Private Ltd. (RCPCPL) revealed that, the growth
in turnover, gross profit and net profit were positive for the period 2007-09.
The analysis of business performance assessed through the liquidity ratios,
current and quick ratios were observed to be satisfactory. However, due to high
inventory and lack of working capital the profits were low. Consequently, the
efficiency and profitability ratio of the company were found to be nonsatisfactory.
The extension services provided by the PC were rated as good by
the shareholders respondents. However, they faced lots of inadequacies in
terms of quality and quantity of input supplied, supply of credit and market
information. The provision of different services was indicated as the main
reason for the shareholders to join the company which seem to have not been
adequately met by the PC. Government is supporting the RCPCPL by providing
working capital and brand building apart from providing administrative
support for the first five years. The study concluded that the RCPCPL has not
been able to make significant growth in terms of expansion of services to meet
the diversified needs of the shareholders. Thus, it is necessary for RCPCPL to
come up with a viable business plan for the improving its performance and
modify its procurement policy to include grain produced by the share holders
besides the seeds.