Financial Performance Overview of the Indian Sugar Industry
Akash Sharma1, Avneesh Kumar2, Sumita Sinku3
1Research Scholar, Department of Commerce, Mahatma Gandhi Central University, Motihari – 845401, Bihar, India; Email: akashsharma2697@gmail.com
2Assistant Professor, Department of Commerce, Mahatma Gandhi Central University, Motihari – 845401, Bihar, India; Email: avneeshkumar@mgcub.ac.in
3Assistant Professor, Department of Commerce, Faculty of Commerce and Business, Delhi School of Economics, University of Delhi, Delhi; Email: sumita5thfeb@commerce.du.ac.in
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Abstract-
The Indian sugar industry is pivotal in the country’s agricultural economy, contributing significantly to rural livelihoods, export earnings, and bioethanol production. This review aims to synthesise existing research on the financial performance of Indian sugar companies, focusing on studies employing the DuPont analysis framework and related financial indicators. This study uses a narrative review methodology to analyse over 25 papers published between 2012 and 2025. Key performance areas explored include profitability, liquidity, solvency, efficiency, capital structure, intellectual capital and maintenance practices. The findings reveal significant variation in financial performance across private and cooperative sugar mills, with private firms typically exhibiting superior profitability and solvency. The DuPont model is widely used to evaluate the components of Return on Equity, highlighting net profit margin and asset turnover as critical drivers. Furthermore, intellectual capital efficiency and maintenance strategies emerge as important but underexplored factors influencing firm performance. This review identifies several research gaps, including the limited use of longitudinal data, the underrepresentation of cooperative mills in financial modelling and the need for integrated frameworks combining financial and non-financial metrics. The study concludes by offering recommendations for future research and policy, emphasising the need for targeted investment, better financial oversight and modernization to enhance the sustainability of India’s sugar sector.
Keywords: Financial Performance, Capital Structure, Indian Sugar Industry, DuPont model
