A Comparative Analysis of Capital Efficiency between Bakery and Dairy Based Enterprises Found in Prayagraj District

Adil Khan¹ , Arun Kumar Singh²

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.3 , pp.49-53, Sep-2022

Online published on Sep 30, 2022

Copyright © Adil Khan, Arun Kumar Singh . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The study is based on the small-scale manufacturing industry while selecting bakery and dairy product manufacturing firms from the Prayagraj district. An inter-industrial comparison is made in terms of capital employed and capital intensity in the production to determine the magnitude of capital efficiency in these industries. The concerned food processing firms are analysed and evaluated by focusing on key factors such as variable cost, fixed cost and capital-output ratio. The results show that a lower amount of capital is required for setting up a dairy processing plant and operating on a small scale. On the other hand, bakery firms are capital-intensive but fail to use capital effectively, thus generating a lower amount of sales revenue relative to the amount of input used up. While considering the limited sources of finance in the region and the presence of surplus labourers as well as growing consumer demand, dairy production is a much more desirable mode of occupation. The efficiency of capital could be raised in small firms through imparting proper knowledge and training to workers.

Key-Words / Index Term :
Fixed asset, Variable cost, Capital intensive, Labour productivity, Technological upgradation

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