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GROSS PROFIT AND VALUE ADDED

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PR-14-13

Table 6.7 GROSS PROFITS OF THE SAMPLE VENDOR UNITS (Rs in Million) Formal Informal

6.9. GROSS PROFIT AND VALUE ADDED
Based on the above, we are in a position to estimate the value added by the sample units. However, prior to this, we present the gross profit of these units in Table 6.7. The table indicates that profitability in the formal sector is significantly higher at 19 percent, compared to the informal sector where it is 12 percent on average. Smaller units also appear to have a somewhat higher share of gross profit in turnover.

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Table 6.7
GROSS PROFITS OF THE SAMPLE VENDOR UNITS
(Rs in Million)
Formal
Informal
Small Medium Large Total Small Medium Large Total Turnover
7 50 3179 1078 6
40 857 301 Gross Profit
2 15 585 200 0.3 2
105 36
Rates of Gross Profit
(%)
29
30
18
19
20
5
12
12
Source: Estimated from Survey Data.

We now estimate the share of value added in turnover in Table 6.8.

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