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An industrial undertaking inwhich an investment in fixed
assets, plant and machinery
doesntcross Rs 10 million is
treated as SSI unit, this isirrespective of whether the
asstes are held on ownership
terms,on lease on hire
purchase
- Indian industry Law in
1999
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Ice Creams Bread
Biscuits
Oil extracts
Rice mills
Garments Health services
Legal services
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Small Scale Industrial
Undertaking
EOU [Export oriented]
SSI unit Ancillary industrial unit
Small scale business
and business
enterprises
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IT engages in the
manufacture of parts,
accessories,
components, sub
assembles
It supplies at least
50% of its production
to other industries
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Investment is around
25 lakh
Ex:
Laundry,poultry,Dairy
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SSI provide immediate large
scale employment and effects
a more equitable distribution
of national wealth. They also
mobilize resources of capital
and skill which might
otherwise remain unutilized.
Establishment of SSIs all
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Need of
Employment
Need for equalityNeed for
Decentralization
Need for More
Entrepreneurs
Need to improve
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To mobilize thecountrys untapped
capital and human
resources
To improve the
standard of living
To encourage small
entrepreneurs to growand realize their
dreams
To improve the life style
of BPL
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Lack basic infrastructure
Use Old/outdated technology
Are Poorly placed in market situation Their Promoters lack specialisation
Have Weak capital base &lesser access tocapital market
Lack managerial & professional skills
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Face resource crunch Have Poor accounting system
Have No planning of budgeting
Their Short term fund are deployed for longterm uses
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Boost Manufacturing
activities
Encourage
Construction activities Provide Public utilities
Provide Service or
repairing activities Scope for Financial
activities
Increase in Retailing
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Auto ancillary Electrical goods Boat making Sport goods
Ceramics Electro plating Food processing Pickles and
chutneys Furniture making Flour Mills Ice creams
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Banks should convey timely sanction Loan applications to be timely disposed
Need based & timely credit to be extended
Simplified & uniform application form Rejection of application form should be done
with approval of higher authorities
Collaterals upto 1lac not to be insisted
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Financial assistance for meetig T/L&W/C begiven
Interest on delayed payment to SSI andancillary undertaking act 1993.
Target for financing priority secctor where SSIis a constituent
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Providing employment
Mobilization of local
resources
Feeding large scaleindustries
Promotion of Exports
Equitable distribution of
wealth Promoting Regional
Development
Inspiring new
entrepreneurs
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Self EmploymentOpportunities
Do not Require High endTechnology
Location Independent
Use Local resources They help earn and foreign
exchange Opportunity for young
entrepreneurs
Promotes localcraftsmanship andhandicrafts
Require simple technologyand low managerial skills
Helps to large industry by
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Raw Material:scarcity, poor quality
Marketing
Outdated Technology Over Protection by
Government
Lack of Research and
Developmentactivities
Lack of efficient
successors
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Study the Priorities andpolicies, subsidies and
assistance of the government
Study some funding agencies
like NABARD,KIADB,SIDBI
Licensing and registration
requirements
Studying policies about importand export, and laws.
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Project and ProductIdentification
Selecting the form of
ownership Location of the unit
Preparation of project
report
Registration of Project
report
Arrangement of finance
Procurin of licenses and
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Recruitment of staff
Procuring raw materials
Electrification procedures andwater facilities
Starting productionMarketing the product
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A new product
idea can pull the
marketTechnology
pushStudying the
market potential
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Sole
Ownership
Family
Ownership
Partnership
Private
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Private Limited Companyprivate limited company
is a voluntary association of not less than two andnot more than fifty members, whose liability is
limited, the transfer of whose shares is limited to its
members and who is not allowed to invite the
general public to subscribe to its shares ordebentures. Its main features are :-
It has an independent legal existence. The Indian
Companies Act,1956 contains the provisions
regarding the legal formalities for setting up of aprivate limited company.
Private Ltd Company
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Raw Material
Nearness to Market
ManpowerAvailability of Infrastructure
Business Climate of the region
Climate and environmental factors
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Introduction about the project
Preliminary analysis of alternatives
Project Description Technical feasibility
Financial feasibility and analysis
Economic Viability Marketing Plan
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Provisional registration- Issued by district unit of directorate
of industries
- Valid for one year
Permanent registration
- It is applied for when theentrepreneur is ready to start his
commercial production
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Bank Loans
Venture
Capitalists
PersonalMoney
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Municipal Authorities[City Limits] Chief Inspector of Factories
Ministry of Agriculture[ Food processing
Ind] State Drug Controller[ Pharmaceutical
products]
Collector central Excise[ Alcohol related
products]
Bureau of Indian Standards[For all
measurement]
Com an Law Board for re istration of
7 Procuring of licenses and getting
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To promote
industrial
activities,thegovernment
brought
resolution.1948-
2003 those are
called as Indutrsial
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Liberalizatio
n had made importof scarce & nonavailable raw
materials easy
New entrepreneurshave started
many SSI s
Best example-growth
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Helped growth of SSI in a
big way.
It threw open many
challenging entrepreneurs
to produce similar goods &service at competitive price
& of better quality
Example-Productionof telephones
Private agencies offering
LIC,health insurance and
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Helped insetting many SSI
It made possible the export
of goods produced in SSI.
Indian entrepreneurs in
Pharma sector, I.T. Sector,Steel sector have gone to
many countries.
Growth in Transport,
entertainment etc.,
Also growth in areas like
food processing, export food
d t t d t LPG