Analysis of Productivity: A Comparative Study of Pharmaceutical Sector Companies Included in Nifty 50

By : Meenu Maheshwari , Priya Taparia

Page No: 348-395

Abstract
Research Issue: Productivity is the ratio of the output to the inputs used in the production process. In the present research, an attempt has been made to measure, analyze and compare intra-company and inter-company overall productivity of pharmaceutical sector companies from 2010–11 to 2017–18 i.e. for eight years.
Research Findings: For intra-company comparison, chi-square test has been used and the results indicate that null hypothesis drawn is accepted in case of Cipla Ltd., Dr. Reddy’s Laboratories Ltd. and Lupin Ltd., while it is rejected in the case of Sun Pharmaceutical Industries Ltd. For inter-company comparison, Kruskal Wallis’ One Way Analysis of Variance Test has been used and results indicate that null hypothesis is rejected. This means that there is significant difference in the productivity ratios of the pharmaceutical sector companies included in Nifty 50.
Conclusion and Suggestions: It may be concluded from the analysis that the pharmaceutical sector companies included in Nifty 50 are not able to utilize its resources efficiently as for each amount of input, less amount of output is obtained. Productivity of a company can be improved by optimally utilizing the raw material without any wastage or spoilage, the labour cost by adopting techniques such as incentive schemes, workers participation in the management, etc.

Authors :
Meenu Maheshwari : Assistant Professor, Department of Commerce and Management, University of Kota, Kota, (Rajasthan).
Priya Taparia : Research Scholar, Department of Commerce and Management, University of Kota, Kota, (Rajasthan).
 

DOI: https://doi.org/10.32381/PROD.2020.61.03.9