The Krishna Co-operative Sugar Factory Limited was established in the
year 2001 located in Athani taluk of Belgaum district. The objective of
the study was to analyze the procurement strategy of sugarcane, to
analyze the business performance of the factory and to document the
constraints of the factory. The data for five years from 2008 to 2013 were
analyzed using ratio analysis and annual compound growth rates. The
major findings of the study revealed that, Krishna Co-operative Sugar
Factory Limited has good managerial and financial structure. The
compound growth rate of physical performance indicators like sugarcane
grower members 0.03%, total members 0.04%, average sugar recovery
3.56%, average duration of crushing season 1.26%. The compound
growth rate of financial performance indicators like share capital 1.65%,
reserve funds 0.02%, owned funds 8.45%, total assets 18.93%, total
liabilities 11.53%, total expenses 20.98% and total sales 11.12%. The
current ratio was greater than unity in all the years. Tests of solvency
and turnover ratios found to be better in all the years. Financial ratio
analysis depicts that, the factory has working effectively. The average
sugarcane procurement cost was Rs. 1754 per tonne of sugarcane. Major
constraints faced by the sugar factory were quality of raw materials, high
cost of labour, transportation and interest rate. In light of constraints
faced, the suggestion expressed is to have a separate sugarcane
development section and sugarcane procurement section which may help
in efficient production and procurement operations of the factory.