NABARD - Student Internship Scheme 2016-2017 - page 122

• To study the economics of the units.
• To study the various problems faced and to suggest recommendations for healthy growth of their
Sample State/District/Talukas/Villages: Maharashtra/ Ratnagiri (Ratnagiri-Charveli, Neware, Pavas,
Pali, Hatkhamba,Mirjole; Lanja- Gavane, Sangameshwar- Karanjani; Rajapur- Oni)
Sample Size: 8 units each of fruits and vegetable processing, cashew nut processing segment and 4 units
of wheat processing units
Research Methodology:
The study was conducted on the basis of primary and secondary data collected during the course of field
visit. Both types of data i.e. Primary and Secondary are to be used to conduct the study.
The data was collected through a predesigned questionnaire method for each type of industry. Selected
industries were interviewed and deeper insights were gained through in-depth interviews. Secondary
data was collected from internet, books, reports and journals.
Major Findings:
• The average Gross Profit Margin earned by Cashew processing units was 12.02% and that of fruits
and vegetable processing units were 17.62% and that of wheat processing units were 15.44%. The
Gross Profit margin of fruits and vegetable processing units was the highest.
• The Operating cost ratio was the lowest for fruits and vegetable processing units which were
69.88% and that of cashew processing units and wheat processing units were 76.15% and 84.56%
• The Net Profit Before Tax was higher for fruits and vegetable processing units which was 14.06%
• The Current Ratio of cashew processing units was ideal when compared with the other two sectors
which was 2.05:1
• Inventory Turnover Ratio of fruits and vegetable processing units was higher than the other two
sectors which were 4.21 times. This means that inventory is getting converted into sales every 4.21
times in a year. There will be no inventory turnover ratio for wheat processing units as no inventory
is required for processing wheat.
• The Breakeven point in volume of cashew processing units was the highest amongst all which was
Rs. 5, 36, 80,000. This means that the company is able to recover its fixed costs and even earning
profit which is a good indicator.
• The Net Present Value of fruits and vegetable processing units was higher than other two which was
Rs. 50, 38,000. If NPV is positive, it is advisable to invest in that business. In this case, NPV of all
the three sectors is positive. So that means it is profitable to invest in any of the businesses but the
NPV of fruit and vegetable processing unit is the highest followed by cashew processing unit. That
means it is more profitable to invest in fruit and vegetable processing units or to start it as compared
to the other two businesses.
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