Trends and Factors Affecting the Profitability of Selected Public Limited Textile Mills – A Study in Coimbatore District

Abstract

The Indian textile industry has a significant presence in the Indian economy as well as in the The Indian textile industry has a significant presence in the Indian economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. The industry also contributes significantly to the world production of textile fibres and yarns including jute. Profits are the ultimate test of any management’s effectiveness. Profitability means ability to make profit from all the business activities of an organization, company, firm, or an enterprise. Coimbatore is one of the fastest growing tier-II cities in India and a major textile, industrial, commercial, educational, information technology, healthcare and manufacturing hub of Tamil Nadu. With more than 25,000 small, medium and large industries, the city's primary industries are engineering and textiles. Coimbatore is called the "Manchesterof South India" due to its extensivetextile industryfed by the surrounding cottonfields. The present study is aimed to study the trends in profitability and solvency of the selected public limited textile mills in Coimbatore district and also the factors influencing the Profitability position.