Determinants of Relative Efficiency in Indian Food Processing Sector
Akashdeep Singh Smagh *
Clair College, Windsor, N9A6S4, Canada.
Khushdeep Dharni
Punjab Agricultural University, Ludhiana, Punjab, 141004, India.
Pushpinder Vashisht
Punjab Govt, Punjab, India.
Ramandeep Kumar Sharma
GRA, Mississippi State University, Starkville, Mississippi, 39762, USA.
*Author to whom correspondence should be addressed.
Abstract
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.
Keywords: Relative efficiency, food processing units, Logistics regression, India, benchmarking