ABSTRACT

Cement industry plays a dominant part in construction sector and all infrastructural projects. This industry takes up an important role in the Indian economy because it has strong relationship with other sectors like construction, Transportation, Coal and Power. Even though more than 500 cement plants which includes international, national and local brand are working in the country, cost of cement is increasing day by day. In such situation, Local brands with affordable prices are promoted with good quality focusing on low and middle income group customers when majority of customers felt that too high price for the branded cement. Thus the curiosity in measuring the efficiency of Grinding and blending cement units grows to identify the righteousness of utilizing scarce economic resources in a most efficient manner. Efficiency analysis considered as important tool to measure the performance of the firms in cut throat market. The more efficient firms are usually mentioned as benchmarking units for the development. In this study, efficiency scores are obtained using the nonparametric Data Envelopment Analysis (DEA) technique for 3 grinding and blending cement units situated in Tamil Nadu. The data was accumulated from the annual report published in ROC. The DEA is used to calculate weights for inputs and outputs by assigning the maximum efficiency score for a selected firms under assessment. The significant determinants behind the inefficiency found in this analysis include mainly the manager’s improper decision making in procurement of raw materials in respective sector, electricity cost increase due to peak time production and workers productivity. Keywords: Efficiency analysis; Variable returns to scale; constant return to scale; Annual report; ROC; Input oriented approach
Publication date: 15/01/2022

https://ijbpas.com/pdf/2022/January/MS_IJBPAS_2022_JAN_SPCL_1064.pdf

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https://doi.org/10.31032/IJBPAS/2022/11.1.1064