A COST ANALYSIS OF CASHEW PROCESSING UNITS IN INDIA: FINANCIAL VIABILITY AND STRATEGIC INSIGHTS
DOI:
https://doi.org/10.55829/t41ede73Keywords:
Cost Analysis, Cashew Processing, Financial Viability, Debt Service Coverage Ratio, Break-Even Point, ProfitabilityAbstract
This study explores the cost and financial viability of developing and maintaining a cashew processing facility in India. The research, conducted during a 30-day internship at Alliance Food Engineering Consultant Pvt. Ltd., focuses on analysing critical financial indicators such as the Debt Service Coverage Ratio (DSCR), Break-Even Point (BEP), Internal Rate of Return (IRR), and Net Present Value (NPV). To build complete financial models, the methodology uses both primary data (supplier quotations) and secondary data (industry reports and financial statements). Key findings show good profitability metrics, including a high DSCR and large revenue increase over four years, despite constraints such as negative net working capital. The analysis emphasizes the need of meticulous cost management and smart resource allocation in sustaining financial stability. This research offers valuable insights for stakeholders in the cashew processing industry, contributing to informed decision-making in capital investment, vendor selection, and operational optimization. Furthermore, the study highlights the critical role of government policies and technological advancements in bolstering the growth of this sector.
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