A Study on the Business Diversification Strategies of PACS in Nagapattinam District: A Study on the Perceptions of Members

The struggle for existence and growth is indeed very hard for any type of business in a competitive environment. The position of business houses in the rank list of dominance flips and slip, some disappearing from the list while other new one enter. When there is a change in the environment the ground rules of competition are changed, industry boundaries are redrawn, new industries, services and products are created and established industries are reinvented. Managing the Primary Agricultural Cooperative Credit Societies (PACS) in this competitive business environment becomes tussle. Recognizing the role of PACS in the development of rural economy and the need for their business growth, the Government of Tamil Nadu took several initiatives to diversify their business. Because of these diversification strategies majorly of the PACS have become financially viable units. This study analyzed the perceptions of members of PACS in Nagapattinam District on the business diversification strategies and found that majority of the sample respondents satisfied with the business diversification strategies. Because PACS – SHG linkage as a core diversification strategy, eliminated the role of money lenders in the rural credit market and generated additional employment opportunity in farm and non-farm sector.