Analysis of Financial Viability of Himachal Pradesh Horticulture Produce Marketing and Processing Corporation Limited

Himachal Pradesh has been a fruit bowl and especially known as apple state of India. Himachal Pradesh promoted Himachal Pradesh Horticulture Produce Marketing and Processing Corporation Limited m the year 1973 to process fruits and horticulture produce to enhance value addition and produce quality concentrates and products specially apple and citrus/cider based products. The aim was to help horticulturists so that they can get good price of their products. Majority of the population is dependent on horticulture as their livelihood m Himachal Pradesh. Public sector often seeks an excuse of fulfilling the social responsibility. But m the present age of liberalization, privatization & globalization, every business organisation must be financially viable not only m totality but m segmental performance also. The aim of the present study is to analyse the financial viability of Himachal Pradesh Horticulture Produce Marketing and Processing Corporation Limited We have analysed the financial viability with the help of two types of profitability ratios- profitability related to sales and profitability related to investments. In profitability related to sales, we have analysed the financial viability with the help of Net Profit Ratio. Profitability related to investments has been analysed with the help of Return on Investments Ratio and Return on Net Worth Ratio. In our present study, an attempt has been made to analyse the present financial position and to find out the various causes of poor financial position. The study suggests various measures to improve the financial viability of Himachal Pradesh Horticulture Produce Marketing and Processing Corporation Limited Improvement m working of HPMC will go a very long way m improving the well being of large population of Himachal Pradesh who are mainly horticulturists by profession. If the suggestions made in the study are considered by the management. It will improve the efficiency and profitability of the corporation and will be beneficial for the fruit growers and horticulturists in the state.