Growth Analysis and Performance Ranking Of Select Indian Fertiliser Companies

Abstract

Empirical evidences from the developed and few emerging economies have shown that the producing unit of the economy tends to influence the entire economy's performance and stability. But, without adequate finance, incentive of operations, business friendly environment, effective management and operation structure, growth-oriented government policies and regulations, the manufacturing firms' will not perform as expected. The degree to which firm growth is more/less random is studied in the context of how the size composition of firms and innovation patterns change. This paper was designed to study the performance of selected Indian Fertiliser Industry. To achieve this objective, performance of selected companies on five key parameters over the period from 2002 -2011 was taken into account for ranking viz: size (a function of the total assets and net revenue), growth in net revenue, growth in net profits, profitability (profit margins) and total average returns. The results showed that irrespective of the size of the company the profitability and returns were on the good record. Content flabby, large companies had increasingly seen their businesses melt in the face of competition from small players who change the dynamic and rules of the market through boldness. The empirical research has suggested that firm growth is determined not only by the traditional characteristics of size and age but also by other firm-specific factors such as indebtedness, internal financing, future growth opportunities, process and product innovation, and organisational changes.