Economics of Toilet Soap Production in Kerala

An analysis of performance of toilet soap production in Kerala is made in this study. From the analysis of both Economic and financial performance of toilet soap production in Kerala, we conclude that the performance of toilet soap production as a whole is satisfactory. On the basis of economic performance in terms of productivity analysis by Direct and Kendrick methods we conclude that TFP of sample units in toilet soap production is increasing. The production function also shows that the returns to scale, according to Cobb Douglas production function, is increasing for the large unit and decreasing in all other- medium, small and very small units. Financial performance of the sample units by using financial ratios established that most of the units satisfied the ratios above the standard levels. The large unit is the better performing unit than medium, small and very small units.