Sengupta Fibres. Ltd., has been in business since 1962. Sengupta supplies yarn to textiles mills that are used in producing traditional saris. On average three saris are purchased by women each year, the saris are usually purchased for religious ceremonies.
India is currently the world’s second most populated nation. In 1989, there were about half a billion females, who in total would demand about 12 billion yards of fabric. Sengupta has a large potential for growth within its sector of the textile market.
Textiles are the largest manufacturing sector in India. It is the second largest sector of employment following agriculture. The majority of the textiles are made of cotton. They are usually made on a small scale of production. Sengupta has their only plant in Kota, India. As a small-scale company, Sengupta supplies yarns to the decentralized sector that makes up 70 % of the textile industry.
The yarn produced is distributed to local merchants throughout the country. Due to previously poor road conditions, Sengupta has two warehouses to increase delivery efficiency. Earlier, delivery was a complicated task because of unpaved roads and crowding. India’s transportation authority has made increased efforts in paving roads and increasing highways. The new road between Kota and the New Delhi has increased delivery reliability. This effort has helped Sengupta deliver goods faster and more efficiently.
The Diwali celebration is in the middle of autumn causing a peak in demand. It is because of this peak that Sengupta has previously hired and fired workers seasonally.
The financial forecast for Sengupta Fibres Ltd. demonstrates favorable expectations for the company. Effective decision-making requires the analysis of a variety of sources of information that have an impact on the financial performance and outcomes of a firm. With respect to Sengupta Fibres Ltd., this forecast considered a great deal of information acro...