Capital Intensive vs Labour Intensive

Topics: Capital intensity, Labor intensity, Capital Pages: 2 (454 words) Published: October 8, 2011
Management initiatives for the Agri-business sector in India

Topic: Capital intensive vs. labour intensive in agri-business


The presentation attempts at reviewing the management initiatives for capital and labour intensives in agri-business in India. Agriculture has played a vital role in the survival of human and development of civilization. Agriculture continues to be a fundamental instrument for sustainable development in India. Agri-business is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing and retail sales.

The primary objective of this presentation is to find out the capital intensive vs. labour intensive in agri-business in India. The secondary objective is to find out in what circumstances both these intensives are going to be used effectively and efficiently.

Agri-business can be done in two forms of utilisation of sources to effective mass produce. One is Capital intensive and the other is Labour intensive. ‘Capital’ refers to the equipment, machinery, vehicles, etc., that a business uses to make its product or services. Capital-intensive processes are those that require a relatively various levels of capital investment compared to the labour cost. The costs of financing, maintaining and depreciating of capital are investment and overheads. These processes are highly automated in related areas and mostly used in large scale. These processes are costly and minimum time consumption to increase the scale of production. ‘Labour’ refers to the people required to carry out a process in a agri-business. Labour-intensive processes are those that require a relatively high level of recurring labour compared to capital investment. This process is mainly used in small or medium scale. The labour cost includes wages, recruitment, training, other benefits, etc. This...
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