Productivity analysis - study of auto ancillary industries

Productivity is an important aspect in manufacturing or service industry. Manufacturing and services account for 75% of the Indian economy. Automobile manufacturing which is a large part of the manufacturing industry contributes significantly to the GDP. There are a lot of ancillary units who supply to the automobile giants and employ a large number of people. In the wake of fierce competition there is a greater interest in effective utilisation of resources in order to maintain margins. This study applied data envelopment analysis to study the performance of the auto ancillary industries. The annual financial data of listed companies available in the public domain is used. The study used data envelopment analysis to analyse the current pattern of resources utilisation by manufacturing units and suggest potential areas for improvement of productivity.