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This practical report is a synergistic product of many minds and has been accumulated over the
last few months. This has been a special practical report brought to fruition through the efforts of
some very special people. Many people contributed enthusiastically to this project, which really
came together in the last few weeks before deadline. For their continuous guidance and valuable
advice I would like to take this opportunity to thank.
Firstly, I would like to thank Kalpi Institute of Technology, Kalpi distt. Ambala & who has
granted me this opportunity to prepare a practical report which has helped me to gain knowledge
beside my studies and which is also definitely going to be useful in future.
I would like to place on record my deep sense of gratitude to my parents for financial wisdom
and inspiration that have guided and helped me from day one.
My Subject In-charge, Er. Gaurav Talwar Assistant Professor in Mechanical Department who
came in and battened down the hatches when things were flying about.
Gurdhyan Singh
Roll No. 5811677
INTRODUCTION
Small Scale Industries
The Small-Scale Industries (SSI) is a program of the Kurukshetra University solely devoted to
assist the promotion and development of small and medium enterprises (SMEs) in the India
through training, research and consultancy. It also helped other countries in Asia Pacific Region
build up their own SME development capabilities.
The Institute for Small-Scale Industries was established on March 2, 1966 through a bilateral
agreement between the Republic of the USA and the Government of the India. Its principal
objective then as now was to assist and promote the development and growth of the small-scale
industrial sector in the India. Originally set up as the training institute for the India small
industries, it gradually built up its capabilities and expanded its activities to include research,
extension, and information programs.
On August 4, 1969, the Institute was established through Republic Act No. 6041 as a research
and extension unit of the Kurukshetra University. The Institute had its permanent home with the
completion of the four stories E. Virata Hall in 1986.From then, KU ISSI conducted several
consultancy training courses, seminars, technical studies in the field of medium and small-scale
industries with emphasis on Indian industries.
The SSI (Small Scale Industries) today is immense for the growth of the country. Small-scale
industries are the industries which are run with the help of hired labor and which also use some
simple machine & power.
The investment scale in this industry varies from 5 Lakhs to 1 crore for the fixed assets.
Irrespective to no. of workers engaged is called small scale unit. The small-scale industries (SSI)
constitute one of the vibrant sectors of the Indian economy in terms of employment generation,
the strong entrepreneurial base it helps to create and its share in industrial production and
exports. The Government created the Ministry of Small Scale Industries and Agro and Rural
Industries (SSI & ARI) in October 1999 as the nodal Ministry for formulation of policy and coordination of Central assistance relating to promotion and development of the small-scale
industries in India. The Ministry of Small Scale Industries and Agro and Rural Industries (SSI &
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ARI) was bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and
Ministry of Agro and Rural Industries in September, 2001. Taking into account the high potential
for growth in the SSI sector in terms of output, employment and exports, the role of the Ministry
of Small Scale Industries is to strengthen the SSI sector, to enable it to remain competitive in
market-led economy and generate additional employment opportunities. For achieving these
objectives, the endeavor of the Ministry is to provide the SSI sector proper and timely inputs
like:
Adequate credit from financial institutions/banks.
Funds for technology up gradation and modernization.
Adequate infrastructure facilities.
Modern testing facilities and quality certification laboratories; modern management
practices and skill up gradation through advanced training facilities.
Marketing assistance.
Level playing field at par with the large industries sector.
In India these type of industries are Permuted to meet with the problems of excess population &
unemployment so the govt. of India Per motes entrepreneur to step up small scale industries by
aiding him by giving loans, subsidiaries, land, guidance etc.
Role of Small Scale Industries in Economic Development
Small Scale Industry is the segment of economy concerned with production of goods. Small
scale industry (SSI) is a term which applies to the small entrepreneurs who are engaged in
manufacture and production on a micro scale. The SSI sector continues to remain an integral part
of Indian economy with significant contribution to GDP, industrial production and employment
generation in India. Worldwide, the SSIs have been accepted as the engine of economic growth
and for promoting equitable development. The major advantage of the sector is its employment
potential at low capital cost. The labour intensity of the SSI sector is much higher than that of the
large enterprises. In 2000, the Union Government has reduced the investment limit in plant and
machinery for small scale units from Rs. 3 crore to Rs. 1 crore. However the investment ceilings
for tiny industries remain unchanged to Rs. 25 lakh. The small- scale industrial sector has
recorded a high growth rate since independence in spite of stiff competition from the large sector
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and not so encouraging support from the government. This is evidenced by the number of
registered units which went up from mere 16,000 units in 1950 to 36,000 units in 1961 and to
133.67 lakh units in 2007-08. As far as the output of the SSI unit is concerned, it was
Rs.1,22,154 crore in 1994-95 and this has considerably risen to Rs. 695126 crore in 2007-2008
(at current prices). Production in SSI sector during the last ten years has recorded an annual
average growth rate of 8.6 percent. The share of SSI in the countries industrial output is around
39 percent. SSI Sector plays a major role in India's present export performance. 45% to 50% of
the Indian export is being contributed by SSI sector. Direct exports from the SSI sector account
for nearly 35% of total exports. The number of small scale units that undertake direct exports
would be more than 5000. Its play an important role in economic development of India through
following points
Production
Employment
Export
Opportunities
Production
The small-scale industries sector plays a vital role in the growth of the country. It contributes
almost 40% of the gross industrial value added in the Indian economy. It has been estimated that
a million Rupees of investment in fixed assets in the small scale sector produces 4.62 million
worth of goods or services with an approximate value addition of ten percentage points.
The small-scale sector has grown rapidly over the years. The growth rates during the various
plan periods have been very impressive. The number of small-scale units has increased from an
estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000. When the
performance of this sector is viewed against the growth in the manufacturing and the industry
sector as a whole, it instills confidence in the resilience of the small-scale sector.
Year
Target
Achievements
1991-92
3.0
3.1
1992-93
5.0
5.6
1993-94
7.0
7.1
1994-95
9.1
10.1
1995-96
9.1
11.4
1996-97
9.1
11.3
1997-98
8.43
1998-99
7.7
1999-2000
8.16
2000-2001 (P)
8.90
P- Projected (April-December)
*- Target not at constant price
Employment
SSI Sector in India creates largest employment opportunities for the Indian populace, next only
to Agriculture. It has been estimated that 100,000 rupees of investment in fixed assets in the
small-scale sector generates employment for four persons.
Urban
As for urban areas, Food Products and Metal Products almost equally shared 22.8% of
employment. Machinery parts except electrical, Non-metallic mineral products, and
Chemicals & chemical products between them accounted for 26.2% of employment. In
metropolitan areas the leading industries were Metal products, Machinery and parts
except electrical and Paper products & printing (total share being 33.6%).
Year
Target
Achievements
Growth
Rate
1992-93
128.0
134.06
3.28
93-94
133.0
139.38
3.28
94-95
138.6
146.56
5.15
95-96
144.4
152.61
4.13
96-97
150.5
160.00
4.88
97-98
165
167.20
4.50
98-99
170.1
171.58
2.61
1999-2000
175.4
177.3
3.33
Export
SSI Sector plays a major role in India's present export performance. 45%-50% of the Indian
Exports is contributed by SSI Sector. Direct exports from the SSI Sector account for nearly 35%
of total exports. Besides direct exports, it is estimated that small-scale industrial units contribute
around 15% to exports indirectly. This takes place through merchant exporters, trading houses
and export houses. They may also be in the form of export orders from large units or the
production of parts and components for use for finished exportable goods.
It would surprise many to know that non-traditional products account for more than 95% of the
SSI exports. The exports from SSI sector have been clocking excellent growth rates in this
decade. It has been mostly fuelled by the performance of garments, leather and gems and
jewellery units from this sector. The product groups where the SSI sector dominates in exports
are sports goods, readymade garments, woolen garments and knitwear, plastic products,
processed food and leather products. The SSI sector is reorienting its export strategy towards the
new trade regime being ushered in by the WTO.
Opportunity
The opportunities in the small-scale sector are enormous due to the following factors:
Project Profiles
Machinery Procurement
Manpower Training
Export Promotion
Growth in demand in the domestic market size due to overall economic growth
Growth in Requirements for ancillary units due to the increase in number of Greenfield
units coming up in the large scale sector. Small industry sector has performed
exceedingly well and enabled our country to achieve a wide measure of industrial growth
and diversification.
Permanent Registration
Provisional Registration:
Provisional registration is granted to a unit at its pre- investment Period to enable it to
take necessary steps to apply for financial credit, land or an industrial set, water, power or
telephone connections, etc.
Commercial Banks
Industry Extension, Hyderabad and National Institute for Entrepreneurship and Small Business
Development. They conduct special courses, Programmers, workshops, training Programmers for
the benefit of small-scale industries.
Credit Support
Credit is the prime input for sustained growth of small-scale sector and its availability continued
to be a matter of concern. To provide credit support to the various SSI units various policies
have been formulated by the GOI. Various institutes like SFC, SIDC, NISC, SIDBI are providing
financial support to various SSI units.
Overview of the steps taken by the GOI
Composite loans limit raised from Rs. 10 Lakhs to Rs. 25 Lakhs.
In the National equity fund scheme (NEF) the project cost limit has been raised from Rs.
25 Lakhs to Rs. 50 Lakhs.
Soft loan limit restrained to 25% of the project cost.
Task Force is appointed by the Department of Economic Affairs to suggest
revitalization/restructuring of the State financial Corporation.
Product Planning
Product planning may be defined as the act of marketing out and supervising the search,
screening, development and commercialization of new products, modification of existing lines.
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Product planning involves three important considerations The development and introduction of new ideas
The modification of exiting lines as may be required in terms of changing consumers
need and preferences.
The discontinuance of elimination of marginal or unprofitable products.
Products can be classified as Consumers products
Industrial products
Defense products
Consumers products
Goods designed for use ultimately by the consumers or household and in such from they can be
used without commercial processing.
Industrial product
Goods, which are designed to be sold primarily for use in producing goods or rendering services,
as contrasted with goods destined to be sold primarily to the ultimate consumers.
Sales Forecast Defined
A sale forecast is an estimate for the amount or unit sales for a specified future Period under a
proposed marketing plan or programmed.
As defined by the American Marketing Association it is an estimate of sales in dollars or
physical units for a specified future Period under a proposed marketing plan or programmer and
under an assumed set of economic and other forces outside the unit for which the forecast is
made.
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Metalworking
In addition to woodworking, bench vises also have many uses in metalworking as well. Bench
vises can be used to hold metal in place to be cut or modified.
Using a Saw
Bench vises are also extremely useful when using a saw to cut lumber for your woodworking
projects. Using a vise is by far the most reliable way to hold a piece of stock in place while
cutting it. If you have ever had trouble using a saw freehand and wished that you had a way to
better hold your lumber in place, a bench vise will provide the solution that you need.
Working with a Drill
If you are planning a project involving the use of a drill, you will definitely benefit from access
to a bench vise. A vise is absolutely vital when performing a task like drilling that requires
serious precision and stability. Using a bench vise will allow you to drill holes with more
accuracy than you would be able to get without using one.
Using Sandpaper
Finishing a project with sandpaper will take a lot of time, no matter what conditions you do it
under. However, with the proper planning and tools, you can minimize your work and maximize
your effectiveness while sanding. A bench vise is a significant part of doing this. By having your
project secured thoroughly without the use of your hands, you can make sure to not accidentally
damage it, or spend more time struggling to get it in the right position than you do actually
working on it.
Cutting Conduit
When cutting electrical conduit, it is important to secure the conduit in place firmly with a vise
before cutting it. A bench vise is a perfect way to do this. As a Work Bench it is important to
remember that anything a regular work bench can do, a bench vise can do just as well. If you are
going to give up enough space to fit a bench vise, there is no reason not to maximize the amount
of use you get out of it.
Plant Layout
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LAND REQUIREMENT
Land type
Purchas
Area required
46,250 sq.feet
Rate of land
Rs. 150/sq.feet
Total cost
46,250*150
Rs. 6,937,500
Serial
Item
Quantity
Total
2
2
1
2
1
6
7
8
9
Milling machine
Lathe machine
Cold roller
Grinding machine
Drilling machine
Jigs and fixtures
Other req. tools. and set ups
Furniture
Office documents locker
80,000
100,000
45,000
30,000
75,000
30,000
50,000
30,000
1,200
160,000
200,000
45,000
60,000
75,000
30,000
50,000
30,000
12,000
10
52,960
Total cost
7,14,960
No.
1
2
3
4
5
10
Preoperative expenses..20,000
Grand total................................................................................................7, 34,960
MANPOWER REQUIREMENT
Serial no.
Manpower
Expected
Nos
qualification
1
Milling
2-3 years
operator
experience
Total
per month
2
19
Unit salary
9,000
18,000
Grinding
1 year
operator
experience
Lathe operator
2-3 year
7,000
14,000
9,000
18,000
7,000
7,000
8,000
8,000
5,500
11,000
11,000
22,000
experience
4
Drilling
1year
operator
experience
Cold rolling
2-3year
operator
experience
Painter
1year
experience
Skilled
2 years
inspector
experience
Prerequisite
14,700
cost @ 15%
Total
1,12,700
MANPOWER REQUIREMENT
Serial no.
Manpower
Expected
Nos
qualification
1
Milling
2-3 years
operator
experience
Total
per month
2
20
Unit salary
9,000
18,000
Grinding
1 year
operator
experience
Lathe operator
2-3 year
7,000
14,000
9,000
18,000
7,000
7,000
8,000
8,000
5,500
11,000
11,000
22,000
experience
4
Drilling
1year
operator
experience
Cold rolling
2-3year
operator
experience
Painter
1year
experience
Skilled
2 years
inspector
experience
Prerequisite
14,700
cost @ 15%
Total
1,12,700
INDIRECT LABOUR
Serial No.
Indirect
Expected
Nos.
Unit Salary
Labour
Qualification
per
18,000
10,000
Manager
MBA + 3 yrs.
month
18,000
Accounts
experience
M.com +
10,000
officer
2years
experience
21
Total
Receptionist
Graduate in
6,000
6,000
Scrap yard
any field
Matriculate
4,000
4,000
guard
Store keeper
1 year
5,000
5,000
Security guard
experience
2 years
6,000
12,000
Sweeper
Prerequisite
experience
-----
3,000
3,000
8700
cost @ 15%
Total
66,700
Utilities
Serial no.
Utilities
Cost per
month
Electricity supply
20,000
Water supply
15,00
Total
21,500
Description
Cost per
month
2,000
4,000
3,000
4,000
5,000
3,000
4,000
35,000
Cost
22
1
2
3
4
5
6,937,500
1,12,700
66,700
21,500
35,000
71,73,400
500
1300
65,00,000
65,00,000
Total
Cold Rolling is performed to get the desire hardness for handling shafts
Cutting operation is performed to get desired threads on circular shaft & proper length
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Milling operation is performed for attaining the actual size of jaw face
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