Determinants of Relative Efficiency in Indian Food Processing Sector
Akashdeep Singh Smagh, Khushdeep Dharni, Pushpinder Vashisht, Ramandeep Kumar Sharma
Journal of Economics, Management and Trade · pp. 1–10 · Published 19 Jul 2021
10.9734/jemt/2021/v27i530341Abstract
The present study was undertaken to measure and compare the relative efficiencies of selected Food Processing Companies in India. The relationship between firm performance and selected variables in food processing sector has also been studied. Set considered for analysis consisted of 20 food processing companies with period of analysis covering 8 years from 2005 to 2012. Efficiency status of the firm was regressed upon using capital to sales ratio, labor cost to sales ratio, raw material cost to sales ratio and energy cost to sales ratio as explanatory variable. Results indicate that except for labor cost to sales ratio all other variables were having significant negative impact on the efficiency of food processing companies.
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