Open AccessFeasibility Analysis of Cotton Ginning Units in Saurashtra Region
Author(s) -
Daya Suvagiya
Publication year - 2021
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
eISSN - 0976-4666
pISSN - 0424-2513
DOI - 10.46852/0424-2513.4.2021.9
Subject(s) - net income , agricultural science , agricultural economics , profit (economics) , total cost , economic evaluation , economics , finance , environmental science , accounting , microeconomics
"The study has examined economics and economic viability of the ginneries. The study revealed that the difference in total investment between semi-automized and fully automized ginning units was due to the level of mechanization of units. Fully automized ginning units required more fund for management of the unit. The annual gross income was found to be ` 3749.87 lakhs in fully automized ginning units and ` 3399.03 lakhs in semi-automized ginning units whereas net income was ` 2409.50 lakhs and ` 1553.58 lakhs respectively. Under the situation of normal cost and return for all units, the net present value (NPV) was found positive indicating the financial soundness of the investment in the cotton ginning units. The pay-back period was found about 10 years which seems longer. In the varying situations of costs and returns, only situation-IV is found little hopeful with 10% increase in gross profit and 10% decrease in total cost ginners were get highest NPV and IRR with lowest PBP in category-wise and overall sensitivity analysis of cotton ginneries"