Should I opt for production engineering in DJ Sanghavi or mechanical engineering in K.J Somaiya?

I would suggest going for mechanical in KJ Somaiya because mechanical has always got higher preference than Prod as far as I know. Secondly KJ is already a deemed university. Deemed university means it is no longer under the rules of Mumbai University so when you pass you are said to be from KJ Somaiya University instead of Mumbai University. If we have a look at surveys then KJ Somaiya ranks higher than DJ Sanghvi which might be a reason for you to choose it.

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