1 Relationship between Efficiency in Managing Assets and Corporate Profitability in Selected FMCG Companies in India during the Post-liberalization Era: An Empirical Assessment By Sumit Kumar Maji Assistant Professor Department of Commerce The University of Burdwan Burdwan, West Bengal-713104 Mob No.: 09475939809 E-mail id: 2009sumitbu@gmail.com & Dr. Debasish Sur Professor Department of Commerce The University of Burdwan Burdwan, West Bengal-713104 Mob No.: 09432884673 E-mail id: debasishsur@yahoo.co.in Abstract The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. In today’s challenging and competetive environment, optimum utilization of financial resources is an integral part of the overall corporate startegy to maximize the value of the firm. Adoption of differnt forms of corporate restructuting process both at the national and international levels have become a common phenomenon in this industry. So, the task of crafting effective strategies for managing the assets in accomplishing the objectives of maximizing shareholders’ wealth of companies in the Indian FMCG industry is of perennial importance. In this backdrop, the present study seeks to analyze the impact of efficiency of asset managment on corporate profitablity of 15 selected companies in Indian FMCG industry during the period 1995-96 to 2011-12. While satisfying the objective of the study relevent statistical tools and techniques were applied at appropriate places. The findings of the study revealed that the different measures indicating efficiency of shortterm and longterm assets managment had significant positive impact on corporate profitablity. Keywords: Shareholders’ wealth, corporate restructuting, corporate startegy. I. Introduction: The opening up of the Indian economy in 1991 has injected tremendous competition among business firms. It has made a path to MNCs to access the Indian markets resulting in intensified competition in the marketplace. The Indian corporates have also free access to global investments. Due to the changes brought about by the liberalization of economy, a large number of companies in the private sector, which had been operating over the years in a less competitive environment, have started facing increasingly severe competition. In the present environment of cut throat competition, almost all the business firms do not have any other option than optimum utilization of their financial resources in order to be competitive as well as financially healthy. So, like other aspects of financial management, fixed assets management as well as current assets management must have a vital role in reaching this