Bhigania, Roshankumar M.
May 2012
Golden Research Thoughts;May2012, Vol. 1 Issue 11, Special section p1
Academic Journal
Industrial sickness is becoming extremely common in India during the last two decades or so not only in the traditional industries like cotton textile, jute and sugar but even in new industries like cement, engineering, chemical and rubber. The problem of industrial sickness has grown over the years. The problem of industrial sickness varies by sectors and across regions. Sickness in simple terms means that a firm or an industry is systematically making losses and the accumulated losses outweigh its assets. A sick unit may be defined as one which does not fulfill the minimum standards of productivity and profitability due to internal shortcomings while other units in the industry are flourishing. It fails to generate internal surplus on a continuing basis and depends for its survival on frequent infusing external funds. A sick unit is one in which the capacity utilization is 20% or less.


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