A Study on Profitability of Spinning Industry

The Spinning Mills in India, particularly in Tamil Nadu, have been growing at a rapid pace. The spinning industry is dominated by large units and it has been able to undergo significant modernization since the 1990s. If financial performance does not operate well, the whole organisations activity will be ruined. Finance is one of the basic foundations of all kinds of economic activities. Many mills in Coimbatore have closed down because of the financial instability. but the official figures in respect of closures do not adequately reflect this fact. In a competitive business growth and success of spinning mills depends mainly on profitability of such mills. This study is directed towards analyzing the profitability of spinning mills in Coimbatore region. The study covers the various problems relating to profitability of the selected companies of Coimbatore.Business finance mainly involves rising of funds and thus effective utilisation keeping in view the overall objective of the firm. The management makes use of various financial techniques, for administering the financial affairs of the firm in most efficient way to improve profitability.