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Abstract
A study was carried out to analyze the factors influencing the performance of dairy industries in Andhra Pradesh. Principal component analysis, a multivariate technique was employed to determine the factor influencing dairy industries. The variable of milk procurement with highest loadings of 0.925 under first component was the most influencing factor showing the performance of the industries. The next most dominant factor was milk sold by the industries per year with loadings of 0.912 comes under second component. Likewise, the overall selected variables were represented under four components with high component loadings. Out of the four components considered, milk procurement by the different dairies was the most influencing factor that shows the performance of dairy industry.