Research Article
Performance of Indian Cement Companies: A Super Efficiency DEA Study
@INPROCEEDINGS{10.4108/eai.18-12-2018.2283810, author={Satish Chandrasekaran and Asmita Chitnis}, title={Performance of Indian Cement Companies: A Super Efficiency DEA Study}, proceedings={Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India}, publisher={EAI}, proceedings_a={SIMSARC}, year={2019}, month={9}, keywords={performance benchmarking super efficiency dea cement industry}, doi={10.4108/eai.18-12-2018.2283810} }- Satish Chandrasekaran
Asmita Chitnis
Year: 2019
Performance of Indian Cement Companies: A Super Efficiency DEA Study
SIMSARC
EAI
DOI: 10.4108/eai.18-12-2018.2283810
Abstract
The cement industry of India is a major contibutor to its economy and generates huge employment opportunities. In the present study, the cement operating in India has been evaluated using Data Envelopment Analysis (DEA) and Super Efficiency Data Envelopment Analysis (SDEA) for measuring its operational efficiency, productivity and profitability. Data have been obtained on 17 Indian cement companies for the financial year 2017-18 on 4 input and 1 output variables which are Raw Material Cost, Power and Fuel Expenses, Salary &Wages, Total Assets and Total Revenue respectively. Most of the big players like UltraTech, ACC Ltd. and Shree cement were both technical and scale efficient as expected but Super efficiency DEA analysis gave away surprising results. The less known and a small-scale company namely; OCL India Ltd. emerged as the most efficient cement producer followed by Prism Cement. It is evident from the study that the big players are not able to take the advantage of economies of scale.