The Effect of Asset Management Practices on Profitability in Select Textile Companies in India

Abstract

Textile sector is the oldest and largest manufacturing sector in India. During the past decade, Indian textile industry was plagued with many issues such as regulations regarding to licensing and policy distortions which had fragmented the industry. And recently textile industry facing problems like technological obsolescence and poor productivity of labor and machine. It results low levels of sales and profits. The industry requires utilizing its assets efficiently and effectively. Thereby it can improve productivity. The present study attempts towards the effect of asset management practices on profitability in select textile companies in Indian. The data have collected from five textile companies for a period of ten years i.e. from 2004-05 to 2013-14.We found that there is positive relationship of asset management practices on profitability of select textile companies in India.