Small Scale Industries

Topics: Marketing, Distribution, Marketing management Pages: 10 (2853 words) Published: March 13, 2011

The steps involved in starting a small-scale industry are:-
• Conduct Market Survey and Study the products as regards their demand in the market. Check whether it is a seasonal product or it has demand throught the year 1. Study similar products available in the market that can be probable competitors. Analyze them as regards their utility, quality and cost. 2. Find whether the product can be exported.

3. Explore the possibility whether some product can be manufactured in collaboration with a foreign country. This provides readymade technical know how and save a lot of time and money otherwise wasted in developing a suitable method of manufacture. 4. Decide the product that you are going to manufacture, on the basis of:- o Market Survey

o Financial implication involved
o Technical know how available
o Experience in the line, etc
• Select a proper site for locating the unit.
• Take a building for factory on hire or construct your own factory building. • Get yourself conversant with the rules and other information available from small-scale industries, Ministry of Industry, New Delhi • Prepare a scheme in detail to manufacture the selected product such a scheme should include the requirement of and the approximate cost of: 1. Land and building

2. Machinery, tools and other equipment
3. Direct  labour
4. Indirect labour
5. Direct material cost
6. Indirect material cost
7. Selling and distribution overheads
8. Working Capital for a unit time
9. Depreciation
10. Total production cost per unit time
11. Percentage of profit
• The scheme after it has been prepared is sent, for approval to the Directorate of Industries of the particular state. • A small scale unit has to get itself registered with the Directorate of industries in order to avail various facilities provided by the government, such as:- 1. Financial assistance

2. Raw materials water and power
3. Import license
4. Factory accommodation
5. Government order
Since independence government of India has been giving all possible encouragement of SSI. A number of organizations have been set up by the government of India to provide assistance and incentive to small scale industry. These packages of assistance are providing to SSI by a large number of organization operative at national and state level. Development program are being carried out at two level a) National level

b) State level
a) Small scale industrial board (SSIB)
b) Small scale industries development organization
c) National small scale Industrial Corporation.
a) State directorate of industries
b) District industrial center (DIC).
c) State small industrial corporation (SSIC).
d) State financial corporation.
e) Commercial bank.
f) Small industries development bank of India (SIDBI).
It is all advisory body and comprises state government ministry office and representative of several institution & association. Its functioning is to plan, advice and coordinate the activities of center and state government. As such it does not render direct help to entrepreneur. However, it helps to government in involving new polices and program for small scale sector. Small Industrial Development Organization (SIDO)

Its headquarter at  Nirman Bhavan, New Delhi headed by the development commissioner (SSI) has a network of small industries Service Institute (SISIs) one in each state which help In economical, technical, industrial information services, management casualty services, training & marketing. NSIC

Its headquarter at New Delhi & regional office at Kolkata, Mumbai, Chennai, Guwahati etc. Facilities provided:-
Supply of machine and equipment on hire purchase
1.) Distribution of scare raw material imported...
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