International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 09 | Sep 2024
p-ISSN: 2395-0072
www.irjet.net
A Study on Optimizing Working Capital Management in Industries Mahesha Kumar Nayaka C1, Reena Williams2 1Post Graduate Student, Department of Management Studies, VVIET, Mysuru 2Professor, Department of Management Studies, VVIET, Mysuru
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Abstract - This study examines the working capital
young and middle-class population, and automobile companies are increasingly exploring rural markets. Exports grew by 14.50% in 2019 and are expected to continue at a CAGR of 3.05% from 2016 to 2026. BMW recorded an 11% sales growth in 2018. The industry attracted US$ 22.35 billion in FDI from April 2000 to June 2019, supported by 100% FDI through the automatic route. Government initiatives include a 1.5 lakh tax deduction on EV loan interest, the FAME-2 scheme with a Rs10000 crore allocation for 2020-2022, and skipping BS-5 emission norms to implement BS-6 by 2020. The sector benefits from lowcost skilled labor, affordable steel production, and robust R&D centers, with expectations to reach 16.16-18.18 trillion by 2026.
management practices at industry where an auto component supplier specializing in window regulators, seating components, and restraint systems for car manufacturers. Working capital management, a crucial aspect of financial management, involves managing short-term assets and liabilities to ensure liquidity and operational efficiency. This study emphasizes the significance of balancing risk and return to maintain liquidity and meet financial obligations in a dynamic business environment. The study investigates the impact of working capital management on profitability, requiring an in-depth understanding of business operations and the application of effective financial tools and techniques. Key findings indicate that the company's working capital has improved over the five-year period from 2019 to 2024, suggesting a move towards a more satisfactory financial position. Recommendations include aligning current liabilities with current assets, extending the average collection period, adopting a more liberal credit policy, and maintaining a minimal cash balance to avoid idle funds. Key Words: Working Capital Management, Liquidity, Profitability, Financial Efficiency
1.INTRODUCTION ( Size 11 , cambria font) The automotive industry has revolutionized how people live and work. The first modern car appeared in 1895, and shortly after, the first cars were shipped to India. By the turn of the century, Mumbai had three cars, and within ten years, the number had risen to 1,025. This marks the beginning of car history in India, focusing on the production and modernization phases of automobiles. The origins of vehicle use in India trace back 4,000 years with the first use of the wheel for transport. The arrival of the Portuguese in China in the mid-15th century led to significant innovations, including self-propelled wheels. Early steam-driven engine models appeared in the 1600s, but it wasn't until 1893 that the first horseless carriage was developed by Charles and Frank Duryea in America. This vehicle marked the debut of America's first internal combustion engine car, followed by Henry Ford's first experimental vehicle in the same year. From 2019 to 2024, India's automotive industry has seen significant growth, ranking as the fourth largest market with 3.99 million units sold in 2018 and being the seventhlargest commercial vehicle producer. The market is dominated by the two-wheeler segment, driven by a growing
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Impact Factor value: 8.315
Fig. 1. Complete Indian auto sales in 2023 The automotive industry accounts for 7.5% of India's GDP and an overwhelming 49% of manufacturing GDP with a major impact on the economic multiplier. In the manufacturing and service sector, the automotive industry employs 8 million people directly, including dealers. As we have seen in the above table the sales of all the vehicles as been reduced only the exports are being increased.
1.1 SWOT Analysis INDUSTRIES, an ISO 9001:2008 certified company. They are one of the leading companies dealing the projection/spot welding, press components and plating of automobile parts. They are specialized in the field of automobiles parts. They take at most care for quality, quantity and timely delivery. a.
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STRENGTHS OF AUTO COMPONENT INDUSTRY 1. Market Leaders in Automotive Products 2. Technical & Experienced Manpower 3. ISO 9001:2008 certified company
ISO 9001:2008 Certified Journal
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