Economic Performance and Resource Utilisation: Empirical Evidence from India’s Iron and Steel Industry

Abstract

This study examines the economic performance and resource utilization of the Indian iron and steel industry, with a specific focus on six prominent Indian companies. Through empirical research, we investigate the correlation between current sales and lagging sales, raw materials, power and fuel, remuneration to employees, repairs and maintenance, and overall expenses. The study demonstrates that previous sales performance has a substantial impact on present sales, highlighting the significance of customer loyalty and maintaining a strong position in the market. Allocating resources to raw materials, stores, and spares is crucial for improving production processes and product quality, which in turn leads to increased sales. Nevertheless, increased expenses associated with electricity, gasoline, and water have a detrimental influence on sales, emphasizing the importance of efficient cost control. The favourable impact of repairs and maintenance on sales underscores the need to keep equipment and facilities in optimal functioning order. The results indicate that a deliberate distribution of overall expenditures enhances sales performance, offering significant perspectives for optimizing resource allocation and operational strategies in the iron and steel sector. This study provides practical implications for policymakers and managers seeking to stimulate growth and enhance profitability in this industry.