B.V.V.

Sangha’s

BASAVESHWAR ENGINEERING COLLEGE (AUTONOMOUS)

DEPARTMENT OF MANAGEMENT STUDIES
MBA PROGRAMME

Presentation on
“Industrial sickness in India”

Submitted By: Submitted To:

Murugesh Hoogar Dr. Rajeshwari Tapashetti
INDUSTRIAL SICKNESS IN
INDIA
 INDUSTRIAL SICKNESS
 Industrial sickness usually refers to a situation when an
industrial firm performs poorly, incurs losses for several years
and often defaults in its debt repayment obligation.

 A sick industrial unit may be defined as one when it fails to

generate surplus on a continuous basis and defends on frequent
infusion of external funds for its survival.
INDUSTRIAL SICKNESS CAUSES
 Causes of industrial sickness:
• External causes:

1. Recession in the market

2. Decline in market demand for the product

3. Excessive competition in the market

4. Erratic supply of inputs

5. Government policy
 CONTD..

 Internal sources:

1. Faulty planning

2. Incomponent entrepreneurs

3. Problems relating to management

4. Financial problems

5. Labor unrest

I
INDUSTRIAL REMEDIES:
1. Steps taken by banks:
 Recovery of interest reduced rate.
 Arrange special committee of state level in the local branch for link
between financial institution and government agency.

2. Policy frame work of the government:

 SWOT analysis of the industry.
 Liberalization of industries.

3. Wastage of resources:
 Lack of infrastructure facilities.
 Block of capital equipment.
CONTD..

4. Adverse impact on related units:

 Channel break down between industries.

5. Adverse effect on investor &employment:

 Low satisfaction of investor.
 Effect on the growth rate of industry.
 CONCLUSION

 Industrial sickness is a significant problem in many market economies, more

so even in the case of Indian economy. The sickness in small scale
enterprises is very much looming and large as compared to medium and big
industries.
Thank You