A Study on Factors Affecting Performance of Indian Cement Industry

Abstract

The study was designed to investigate the performance efficiency in terms of capacity utilization, factor productivity, profit rate and cost effectiveness;In detail the research methodology used for the study that has focused on the past, present and the future performance of Indian Cement Industry (ICI) at the macro level and the Chettinadu Cement Corporation Limited (CCCL) at the micro level as a case firm. The study purely relies on secondary data. The secondary data were collected for a period of fifteen years (1991-92 to 2005-06) from the database maintained and made available by several organizations viz., Cement Manufacturers Association, Export Import Bank of India, Center for Monitoring Indian Economy etc. for the purpose of effective periodical analysis. In order to know the Performance of the industry was evaluated with the help of factors productivity for    labour, energy and other resources aggregated in value. Total factor productivity including the contribution of technology was also studied Financial strength of ICI was analysed with the help of eight financial ratios. Debt-Equity Ratio (DER), Current Ratio (CR), Profit Before Tax (% to sales) (PBT), Profit After Tax (% to sales) (PAT), Dividend (%) (D), Return Over Capital Employed (%) (ROCE), Return Over Net Worth (%) (RONW), Average Profit per Unit (Rs. /t) (AUP).  All these analyses were done to the case firm – CCCL also.In the end of the study implications and conclusion were provided.

Keywords: Performance, Cement, Manufacturers, Industry,