A study on the effect of material price fluctuations on the profitability of spinning industry in India with special reference to precot meridian LTD

Dr. R. NAVANEETHA KRISHNAN, Faculty in Business Studies, Salalah College of Technology, Salalah, Sultanate of Oman.
Dr. K. SURESH BABU, Associate Professor and Head, Department of Commerce, Sankara College of Science and Commerce, Coimbatore, India
Abstract
This article focuses on the effect in profitability of yarn producers when the prices of cotton are fluctuating with special reference to Precot Meridian ltd. Even though there is an increase in the sales volume and reduction in the cost, Yarn producers facing the risk of maintaining the profitability margin. The only raw material of yarn production is Cotton. And the cotton is a seasonal product. So the purchase of raw material is on seasonal basis. Cotton price in Domestic Market and International Market are different and it is always fluctuating. After Globalization as the yarn producers have both domestic and export sales, they have to face heavy competition in domestic market with importers and in the foreign market with other yarn export countries.

Keywords: Cotton, Yarn, Price fluctuations, Precot meridian

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Notes on contributors
Dr. NAVANEETHA KRISHNAN RAJAGOPAL has 20 years of experience in Teaching, training, and research. Presently, he is the faculty member of Business studies department in Salalah College of Technology, Salalah. He holds a Ph.D. degree in management from Periyar University and MBA, M.Phil (Management), M.Sc (Psychology), PGDCA from Bharathiyar University. Having ample experience & skills in conducting FDPs, MDPs, Workshops, Training, Seminars, and Conferences. He acted as a resource person (60+ sessions) for financial education workshops under Securities and Exchange Board of India (a regulatory body of the Government of India). Also, he chaired many conferences in India and delivered 50+ soft skill programs to different target groups. Attended 50+ FDPs, 70+ National Level/International conferences including IIM and IIT. He has authored two books and 35+ course material to different universities and colleges in India. Awarded as "DRONACHARYA" – Best Teacher Award by Team Tanishq on Teacher's Day. He has qualified NET in Management Studies. He has published 25+ Research Papers in renowned Journals inclusing SCOPUS and also presented 60+ Research Papers in National and International conferences. He is also a member of School Management Committee of Indian Scholl Salalah, Salalah.
 
Dr. K. SURESH BABU has 22 years of experience in Administration, Teaching, training, and research. Presently, he is the Associate Professor and Head, Department of Commerce, Sankara College of Science and Commerce, Coimbatore, India, Tamil Nadu. He holds a Ph.D. degree in Commerce from Periyar University and M.Com, MBA., M.Phil., (Commerce), Honours Diploma in Software Technology (HDTM), PGDCA from Bharathiar University and Passed NET (National Eligibility Test for Assistant Professor) in the year June 2010. Having ample experience & skills in conducting FDPs, MDPs, Workshops, Training, Seminars, and National and International Conferences. Also, he acted as a organising secretary for many conferences in which was conducted by Sankara College of Science and Commerce and he was an Chief Editor for more than 10 conference proceedings. Attended 20+ FDPs, 15+ National Level/International conferences. He has authored two books and 5+ course material to different Universities and Colleges in India. He has published 20+ Research Papers in renowned Journals and also presented 25+ Research Papers in National and International conferences. He is also an Editorial Board member of International Journal of Commerce and Management Research.
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