An industrial undertaking in which an investment in fixed assets, plant and machinery doesnt cross Rs 10 million is treated as SSI unit,

this is irrespective of whether the asstes are held on ownership terms,on lease on hire purchase - Indian industry Law in 1999

 Ice

Creams Bread Biscuits Oil extracts Rice mills Garments Health services Legal services

Small Scale Industrial Undertaking EOU [Export oriented] SSI unit Ancillary industrial unit Small scale business and business enterprises

IT engages in the manufacture of parts, accessories, components, sub assembles It supplies at least 50% of its production to other industries

Investment is around 25 lakh Ex: Laundry,poultry,Dair y

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

 Need

of Employment Need for equality Need for Decentralization Need for More Entrepreneurs Need to improve

To mobilize the countrys untapped capital and human resources To improve the standard of living To encourage small entrepreneurs to grow and realize their dreams To improve the life style of BPL

Lack basic infrastructure Use Old/outdated technology Are Poorly placed in market situation Their Promoters lack specialisation Have Weak capital base &lesser access to capital market Lack managerial & professional skills

Face resource crunch Have Poor accounting system Have No planning of budgeting Their Short term fund are deployed for long term uses

Boost Manufacturing activities Encourage Construction activities Provide Public utilities Provide Service or repairing activities Scope for Financial activities Increase in Retailing

Auto ancillary Electrical goods Boat making Sport goods Ceramics Electro plating Food processing Pickles and chutneys Furniture making Flour Mills Ice creams

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

Financial assistance for meetig T/L&W/C be given Interest on delayed payment to SSI and ancillary undertaking act 1993. Target for financing priority secctor where SSI is a constituent

Providing employment Mobilization of local resources Feeding large scale industries Promotion of Exports Equitable distribution of wealth Promoting Regional Development Inspiring new entrepreneurs

Self Employment Opportunities Do not Require High end Technology Location Independent Use Local resources They help earn and foreign exchange Opportunity for young entrepreneurs Promotes local craftsmanship and handicrafts Require simple technology and low managerial skills Helps to large industry by

Raw Material: scarcity, poor quality Marketing Outdated Technology Over Protection by Government Lack of Research and Development activities Lack of efficient successors

Study the Priorities and policies, subsidies and assistance of the government Study some funding agencies like NABARD,KIADB,SIDBI Licensing and registration requirements Studying policies about import and export, and laws.

Project and Product Identification Selecting the form of ownership Location of the unit Preparation of project report Registration of Project report Arrangement of finance Procuring of licenses and

Recruitment of staff Procuring raw materials Electrification procedures and water facilities Starting production Marketing the product

new product idea can pull the market Technology push Studying the market potential

Sole

Ownership Family Ownership Partnership Private

Private Ltd Company

Private Limited Company private limited company is a voluntary association of not less than two and not 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 or debentures. 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 a private limited company.

 Raw

Material Nearness to Market Manpower Availability of Infrastructure Business Climate of the region Climate and environmental factors

 Introduction

about the project Preliminary analysis of alternatives Project Description Technical feasibility Financial feasibility and analysis Economic Viability Marketing Plan

 Provisional

registration

- Issued by district unit of directorate of industries - Valid for one year

Permanent registration
- It is applied for when the entrepreneur is ready to start his commercial production

Bank

Loans Venture Capitalists Personal Money

7 Procuring of licenses and getting

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] Company Law Board[ for registration of

 To

promote

industrial activities,the government brought resolution.19482003 those are called as Indutrsial

Liberalizatio
had made import of scarce & non available raw materials easy New entrepreneurs have started many SSI s Best example-growth

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-Production of telephones Private agencies offering LIC,health insurance and

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 products etc. ,due to LPG