A Study on the Operating Efficiency of Major Cement Companies in South India

South India has abundant limestone in the state of Tamil Nadu, Karnataka, Andra Pradesh and Kerala. Hence Cement companies are located here with better basic infrastructure. As a consequence of decontrol of cement prices and the elimination of the freight equalization scheme, cement prices in cement companies in South India (surplus region) were very depressed. This situation seriously affects the financial performance of many cement producers in the South Indian regions. In this juncture the author take a initiative to study the operating efficiency of major cement companies in South India. Andhra Cements, Chettinad Cements, India Cements, KCP Cements and Ramco cements were taken for this study. Productivity of raw material, labour, power and fuel and capital employed were taken into consideration to measure the operating efficiency both in terms of gross value addition and net value addition. Finally competitive advantage of each cement company under study was focused.