Performance of dairy processing firms in India- An empirical analysis across size and experience categories

Abstract

The Indian dairy processing sector is characterized by the co-existence of organized and un-organized sectors, while the latter is predominant. For the progressive development of the dairy processing industry, the participation of the organized sector needs to be encouraged. In order to make this industry attractive for investing, its productivity, efficiency, and profitability need to be higher. Keeping these facts in view, this study investigated the profitability of the organized dairy processing sector in India using firm-level secondary data for 1991-2017. Comparative performance analysis was done across different categories of firms according to size and experience. There was a significant increase in profit margin over the period, while it varied significantly across different size categories of firms but not across firms having different years of experience.