Analyzing the Performance of a Multi Product Producer Company in Ramanathapuram District of Tamil Nadu

Abstract

Farmer producer companies were started with the objective of increasing the income of farmers through aggregation, adoption of improved technologies and access to the service and markets. Sample Farmer Producer Company was started during 2015 and it is a multi product producer company. Financial performance is one of the important criteria for sustainability of the business by the FPCs. Hence this study was proposed with the objective of analyzing the performance of multi product Producer Company. Descriptive study was helped to full the objective of this research. Primary and secondary data were collected for analyzing the performance of sample FPC. Primary data analysis showed that sample FPC established strong forward and backward linkage. Based on t test the members of the sample FPC benefited in inputs purchase, access to farm machinery, credit, and crop insurance than the non members. Even though the company’s operational performance was better, financial performance was poor. Based on the altman Z score model results, the company will bankrupt in the near future. The external borrowing of the company limits the profitability. Hence support from the Government and better financial management will make the company financially sound in the near future.