Significance of Subsidiaries for Improving Financial Performance in the Sugar Industry: A Quantitative Analysis

Abstract

One of the greatest plants today for converting solar energy into biomass and sugar is sugar cane. It is a plentiful supply of fuel, chemicals, fodder (green cane plant leaves and tops, bagasse, molasses, and to some extent press mud), food (sucrose, jaggery, and syrup), fiber (cellulose), and other nutrients. Bagasse, molasses, and press mud are the principal byproducts. Bangladesh has been farming sugarcane for the production of gud, sukker, and khandeswari since very ancient times. These sweeteners can also be made from palm and date juice. The objectives of the study were to examine the significance of subsidiaries for improving financial performance in the sugar industry. The utilization of secondary data helped researchers accomplish their goals. Multiple regression analysis will be employed to assess secondary data gathered from diverse sources in order to uncover significant predictors of the business's financial performance. The study revealed that the distillery unit significantly increases net profit every financial year, recovering losses from other units like sugar and agro-firms. The sugar division loses money each fiscal year, while the agro-farm unit gradually loses money. The fertilizer unit earns a significant profit, contributing to minimizing the losses of other units like sugar and agro-firms. Only Carew & Company (Bangladesh) Limited has a distillery plant out of the 15 sugar mills. [Keywords: Byproduct, sugar mills, distillery unit, cost minimize and sugarcane.]