DETERMINING OPTIMAL INDEX OF WORKING CAPITAL MANAGEMENT FOR INDIAN FMCG SECTOR (EMPIRICAL EVIDENCE ON ITS CONTRIBUTION TO EFFICIENCY)

Firms with efficient working capital management generate more free cash flows will result in a higher business valuation. The present study aims to analyze the working capital management efficiency of firms in Fast Moving Consumer Goods industry in India selecting a sample of all the firms of CNX FMCG index of National Stock Exchange of India for the period from 2003-04 to 2014-15. Performance index, utilization index, efficiency index are used to measure the efficiency of working capital management. Empirical results proved that the Indian Fast Moving Consumer Goods industry performed remarkably well during the study period.