Malaya Journal of Matematik, Vol. S, No. 1, 31-36, 2021 https://doi.org/10.26637/MJMS2101/0006 Comprehensive efﬁciency measurement of ﬁve major Indian steel companies using data envelopment analysis and factor analysis Arijit Ghosh 1 , Anirban Sarkar 2 * and Banhi Guha 3 Abstract Dynamic market conditions require operational, ﬁnancial efﬁciency and strategic management. Peer evaluation of performance helps in understanding inefﬁciencies and benchmark identiﬁcation. The current research work is on the analysis of performance measurement of major India based steel companies using DEA model and Factor Analysis approach. Keywords DEA, DMU, Efﬁciency, Factor Analysis. 1 Department of Economics, St. Xavier’s College (Autonomous), Kolkata. 2 Department of Commerce& Management, West Bengal State University, Barasat. 3 Department of Economics, Amity University, Kolkata. *Corresponding author: 1 2drghosh@gmail.com; 2 anirban sarkar77@yahoo.co.in; 3 banhi.guha@gmail.com Article History: Received 01 December 2020; Accepted 28 January 2021 c 2021 MJM. Contents 1 Introduction ........................................ 31 1.1 Design ............................. 31 1.2 Findings ............................ 31 2 Review of literature ................................. 32 3 Research Methodology ............................. 32 4 Data and variables selected ........................ 32 5 Data Analysis and Findings ........................ 32 5.1 Factor Analysis result and Interpretation ..... 35 6 Conclusion ......................................... 36 References ......................................... 36 1. Introduction The Indian steel industry has gone into another period of im- provement since a decade ago, enjoying some real success on the resurgent economy and powerful interest for steel. It has accomplished critical achievements to become a signiﬁ- cant player in the worldwide steel industry. The industry has grown at a compound yearly development rate (CAGR) of around 5 to 7 percent. During 2008 and 2015 it comprised of big players like Tata Steel, SAIL, JSW Steel, Bajaj Steel, and Bhusan Steel. These organizations contributed signiﬁcantly in the steel production in India. Analyzing the comparative efﬁciency of these companies is crucial in ranking these com- panies as per performance. 1.1 Design Openly accessible information of different parameters was gathered. The investigation utilizes information from 5 big steel Companies in India comprising of SAIL, Tata steel, JSW steel, Bajaj steel and Bhushan steel. The analysis has been carried out for a span of Financial Year 2005-2006 to Finan- cial Year 2014-2015 i.e. for a range of 10 years (when these organizations existed as a separate entity). Data Envelop- ment Analysis (DEA) model has been applied to evaluate the operational efﬁciencies of Decision-Making Units (DMUs) and ﬁnally Factor Analysis has been applied to develop the comprehensive ranking score to rank the DMUs. 1.2 Findings The outcomes help the decision makers in discovering the present situation of these organizations in contrast with peers. Based on these efﬁciency measurements, corrective manage- rial decisions can be taken to improve operational performance thereby improving the ranks.