Small scale industry

1. Small Scale Industry

2. The TYPES…....of SSI

3. Ceiling Limit for SSIs Sl No. Year Ceiling limit for SSI 1 1950 Capital assets up to Rs. 5 Lakhs 2 1958 Capital investment up to 5lakhs 3 1960 Gross value of fixed assets up to Rs. 5 Lakhs 4 1966 Value of plant and machinery up to Rs.7.5 Lakhs 5 1975 Plant and machinery up to Rs.10 Lakhs 6 1980 Up to Rs.20 Lakhs on Plant and machinery 7 1985 Up to Rs.35 Lakhs on Plant and machinery 8 1991 Up to Rs.60 on Plant and machinery 9 1997 Up to Rs.3 crore on Plant and machinery

4. Characteristics of SSI 1 Capital investment is small 2 Owned by single 3 Family Owned industries 4 Workers are expected to do different types of jobs as need arises 5 Funded by owner’s savings and dependent on owners entrepreneurship 6 Profit margins are less 7 Innovations and risk bearing is HIGH 8 Management and Organization is POOR

5. Characteristics of SSI Few of them may grow as medium scale industry Technology may become obsolete resulting in closure of SSI Generally found in urban or semi-urban areas.

6. In India plenty of labour is available and capital investment is less “Small Scale Industries” have very good future in this scenario. Innovative Self Satisfaction Caters to individual taste and styles Small in operation Strength of nation Spread over wide areas Need and Rationale of SSI

7. Creation of employment opportunities Improvement in standard of living Elimination of economic backwardness in rural and undeveloped areas of the similar society Reducing regional imbalance To provide employment & create regular source of income for the needy people in the society To encourage entrepreneurship & self-reliance. Objectives of SSIs :

8. Scope for the Small Scale Industry in India is very vast. Even by the help of Govt. & its policies. It has covered most socioeconomic fields of this arena. Some common areas of scope to be listed are, Manufacturing, Servicing & repairing. Construction. Financial. Retailing. Wholesale business. Transporting. Public Utilities. Communication. Scope of SSIs

9. Registered Small Scale Industries growth rate also increased from 2.5 Lakhs during 1973-74 to 36 Lakhs in 2006-07 The production of goods improved from 7200 crore in 1973-74 to 700,000 crore in 2006-07 Employment increased from 40 Lakhs in 1973-74 to 200 lakhs in 2006-07 Accordingly exports rate also increased to Rs.75,000 Lakhs In this way SSI accounts for 35% in total manufacturing, 80% in total employment and 38% of total exports of the country. Role of SSI in Economic Development

10. It don’t require high level of technology. Do not need high capital. Source & capabilities of under employed & unemployed can be utilized to the full extent. Projects related to SSI can be completed in short period , which can be productive for the higher end. Using of locally available raw materials makes products economical. They help in developing the rural areas. They also help in economic growth of the country. Advantages of SSI

11. 12 Selection of Industry type Arrangement of technology Study of equipment requirement Study of resource requirement Selection of land and premises Study of Investment requirement Study of Plant & equipment requirement Study of raw material & source of supply requirement Study of economic viability pricing strategy, financing and Breakeven analysis Application for loan to financial institution Project report preparation Steps to start SSI

12. 13 Steps to start SSI Getting NOC and permission from local body (municipality/corporation/village panchayat) The same above from Directorate of Industries Apply for power connection Recruit staff and workers Order for plant & machinery Order raw material Installing the machinery & Trial runs Production and sales Profits & pay creditors