In 1999-00, 14 big firms had ratios of three or more with Jindal Vijaynagar Steel (JVS) leading the list with 7.48. The value of production of JVS increased by 55.5 per cent to Rs 835.72 crore during 1999-00 from Rs 537.37 crore during 1998-99. The capital employed of the company also increased by 17.8 per cent to Rs 6,247.50 crore. Hence, the capital-output ratio declined during 1999-00. From April 1, 1999, JVS commenced commercial production of finishing mill. Thus, the production achieved was 6,30,680 tonnes of hot rolled coils showing a quantum jump of 80 per cent over the previous year.

This helped the company to increase the value of production significantly during the current year.

Among others are Swil (6.32), Lloyds Steel (4.88), Oswal Chem (4.41), Core Healthcare (4.21), Mardia Chem (3.93), Essar Steel (3.90), SIV Industries (3.70), Birla VXL (3.60), Ispat Alloys (3.51), Bellary Steel (3.42), Jain Irrigation (3.41), Tinplate Co (3.29) and Andhra Cement (3.08). The firms which showed capital-output ratios of three or more in 1998-99, were JVS (9.87), Core Healthcare (5.52), Swil (5.47), Mardia Chem (4.61), Essar Steel (3.95), Gonterman Peipers (3.83), Narmada Chematur (3.75), Ispat Alloys (3.69), SIV Industries (3.68), Oswal Chem (3.56), Andhra Cement (3.39), Guj Alkalies (3.34), ITC Paper Board (3.33), Hindalco (3.18), Lloyd Steel (3.05) and Chambal Fertilisers (3.01).

Firms which had a very low capital-output ratio in 1999-00 were Orient Paper (0.11), IVP (0.18), ITC Agro-Tech (0.25), Marico Indus (0.32), Ruchi Soya (0.33), Hero Honda (0.36), Usha International (0.36) and Atlas Cycle (0.39).

The firms recording the lowest capital-output ratios in 98-99 were ITC Agro-Tech (0.17), IVP (0.22), Ruchi Soya (0.28), Marico Indus (0.33), Usha International (0.34), Godrej Foods (0.37) and Punjab Tractors (0.38).

Among the 350 firms making up the sample of this study, 191 saw a fall in the capital-output ratio, while 149 experienced a rise between the two years under consideration. The remaining 10 firms showed no change.

A significant fall in the ratio was recorded by JV (9.87 to 7.48), Core Healthcare (5.52 to 4.21), Gonterman Peipers (3.83 to 2.92), Narmada Chematur (3.75 to 2.38), ITC Paperboard (3.33 to 2.18), Guj Alkalies (3.34 to 2.16), Otis (2.34 to 1.75), Sterlite Indus (2.24 to 1.66), Reliance Industries (2.26 to 1.61), Indo Gulf (2 to 1.45), Torrent Pharma (2.28 to 1.12), Ambuja Cement Eastern (2.24 to 1.02) and Carborundum Universal (1.28 to 0.81). Firms which saw a sharp increase in the ratio were Lloyds Steel (3.05 in 1998-99 to 4.88 in 1999-00), Oswal Chem (3.56 to 4.41), Birla VXL (2.04 to 3.60), Bellary Steel (2.78 to 3.42), Tinplate Co (1.66 to 3.29), Ballarpur Indus (1.12 to 2.53), Madras Aluminium (1.04 to 2.21), Hindustan Inks (0.88 to 1.27) and Bajaj Electricals (0.67 to 0.84).

In 1999-00, Orient Paper, IVP, ITC Agro-Tech, Marico Indus, Ruchi Soya, Hero Honda, Usha International, Atlas Cycle, Godrej Agrovet and Godrej Foods with capital-output ratios ranging from 0.11 to 0.40 showed the highest efficiency in capital utilisation. Industries which improved the efficiency of capital use, indicated by a decline in the capital-output ratio from 98-99 to 99-00, were auto and its ancillaries (1.26 to 1.07), cement & products (1.68 to 1.64), fertilisers (1.60 to 1.44), sugar & breweries (1.30 to 1.25), cotton Textiles (1.39 to 1.37), tyres & tubes (0.99 to 0.97), electrical Goods (1.10 to 1.09), manmade fibres (1.74 to 1.59), tobacco (0.67 to 0.65), engineering others (1.25 to 1.16), paper & products (1.41 to 0.60), misc (1.29 to 1.25), paints (0.73 to 0.68), aluminium (2.41 to 2.39) and diversified (1.73 to 1.50). An increase in the ratio between these two years was witnessed in tea & coffee (1.33 to 1.57), food products (0.40 to 0.41), pharmaceuticals (1.14 to 1.15), other chemicalproducts (1.01 to 1.04) and iron & steel (2.64 to 2.67).

In 98-99, the top five industries according to capital-output ratio were iron & steel (2.64), aluminium (2.41), manmade fibres (1.74), diversified (1.73) and cement & products (1.68). In 99-00, the top five were iron & steel (2.67), aluminium (2.39), cement & products (1.64), manmade Fibres(1.59) and tea & coffee (1.57).