Pic :: A Panoramic View Of Small Scale Industry
Small Scale Industries :: What is it and how can it be really
explained
Small scale industries
are labour intensive yet require little capital. Small scale industries can be
either manufacturing industries or service providers. Small scale industries
comprise of small enterprises that manufacture goods or provide services with
the help of smaller machines and a few workers and employees.
The enterprise must fall
under the guidelines set by the Government of India. Small scale industries in
India are the lifeline of the Indian economy, and they offer several job
opportunities for skilled labours. After all, small scale industries are
essential for the economy from a financial and social point of view.
For a developing country
like India, these industries bloom because of huge demand and opportunity. Some
small scale industries are also exporting goods, thereby bringing foreign
currencies in India. In India, nearly half of the products (45-55%) shipped are
from Small scale and mid-scale industries. Some small scale industries are
created because of the demand of vendors for multinational companies.
The Government of India
has some guidelines for small scale industries in terms of investment the
company is making and the revenue it has generated. Small scale industries are
categorized into three parts: manufacturing/production, ancillary, and service
industries.
·
Manufacturing
Industries: Units that produce finished goods either for consumption
or used in processing industries. These types of small scale industries are
generally individually owned. Manufacturing small scale industries examples are
power looms, engineering industries, food processing, etc
·
Ancillary
Industries: Big companies or MNC manufactures finished goods, but they
don’t generally make all the parts themselves. Vendors of these companies are
ancillary industries. Ancillary industries can also be identified as those
companies which makes machines for multinational companies or medium scale
industries
·
Service
Industries: Repair shops and maintenance industries comes under the
category of service industries
Other than these types
of industries, there are feeder industries and mining or quarries.
Registration for small scale industries
One can own or invest in
small scale industries with minimal documentation and little investment. Small
scale industry registration is hassle free, and the government also support
with finance for you to invest in small scale industries. Under the Udyog
Aadhar scheme, you can even fill the online registration form to get the
registry done. SSI registration is free of cost, and you do not have to pay for
processing. You will get the certificate on your registered email id after the
document verification and the processing by the executives. Contact details,
Bank/account details, additional details of the business, employees and
investment are the mandatory part to fill the registration form. You may also
have to submit the scanned copy of the documents in which Aadhar card is
compulsory. Micro and small scale industries registration have been made so
easy under several schemes provided by the government of India.
Benefits of SSI registration
The banks and financial
institution provides loan for the business after SSI registration, and it
becomes hassle-free. Once the booking is made, taxes rebate and can be availed.
To participate in the government tenders, it becomes mandatory to have the
registration done beforehand. As a lot of concessions and discounts are
available, it becomes smooth, and the cost of setting up industry reduces.
Classification of Small scale industries:
As per the MSMED Act 2006: Classification of the
Manufacturing process
·
An industry is a small enterprise if investment in plant and
machinery is more than 25 lakhs but does not exceed five crores.
As per the MSMED Act 2006: Classification of service
enterprises
·
An industry is a small enterprise if investment in equipment is
more than ten lakhs but does not exceed two crores
Ancillary small
industrial unit: Minimum 50% of the production to be supplied to the parent
unit and investment in plant and machinery should not exceed one crore.
Small scale industries
owned and managed by women entrepreneurs: Women entrepreneurs have share
capital not less than 51 % (individual or jointly)
List of small scale industries
In small scale
industries, manufacturing industries grow very fast due to the natural supply
of raw materials and huge demand in public. In south India, the summit held
where KSSIA (Karnataka Small Scale Industries Association) was also present in
January 2019, had a motive to discuss the key issues and find a solution to
them at the same time provide the right environment for the growth and
development. The major Small scale industries in Tamilnadu and small scale
industries in Kerala are spinning and weaving, coconut oil making, cashew nut
processing, clay products etc. Small scale ancillary industries in Hyderabad
have a vast number of employment due to various multinational companies.
Foreign investment is as essential as it creates a huge no. of ancillary small
scale industries and thereby creating work.
Some examples of small
scale industries are: Agarbatti making, Chalk making, Biodiesel production,
Sugar candy manufacturing, Wood making, Rice mill, Potato chips making, Toys
making, Microbrewery, Liquid soap making, Honey processing, Slippers making,
Detergent powder making, Fruit juice production plant, Spices making, and
Chocolate making.
These are some of the
ideas from a different industry and a variety of products.
Administrative bodies for Small scale enterprises
There are government
bodies set up for the welfare of the member of small scale industries. Ministry
of small scale industries designs policies, schemes and program to promote the
small scale industries. Ministry of Agro and rural industries coordinate and
help in the development of villages and khadi industries, micro and tiny
industries in rural and urban areas.
Tips to keep in mind to avoid problems in handling small
scale enterprise
·
Shortage of funds and raw materials – The most severe problem
and money management should be done at all levels
·
Marketing problems – Proper advertisement to run the show
every time
·
Quality – To fulfil the demand, one should not compromise with
the condition.
·
Technology – Be in par with the latest technology. It helps to
reduce the cost of investment and increases the quality
·
Managerial skills – To handle the labour class and get the work
done from them.
Well , that is it and That sums it all.
Regards and Thanks
Pics
Shyamal Bhattacharjee
Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta in 2012. He has a experience of about 35 years in Marketing .
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