Management of small scale industries

Er.H.manjunath

INTRODUCTION INDUSTRIES

OF

INDIA

SHEET

METAL

It was started in 1995 by HASAN KHAN with the aim to provide the good quality of tins boxes to TINA OIL MILLS and various industries requiring it. The plot acquired by the company was about: Total plot area Exist blup area Open space area 1000 sq m. 187.69 sq m. 812.31 sq m.

The Tin Company of INDIA SHEET METAL INDUSTRIES are more than just tin box manufacturers. With over 10 years providing a comprehensive service to our domestic, The Tin Company offers a full range of services. The factory is based in Latur and has been in business for over 10 years providing a wide range of quality tins. The company use to produce oil tins the only product with production of 1000 tins on daily basis ensuring speedy and on time delivery. The company offer a single range of service, prototype development and pre-production through final approval. Our aim is to give our clients maximum service making ordering from Tina oil mills.
RIZVI COLLEGE Page1 INTRODUCTION

Management of small scale industries

Er.H.manjunath

BACKGROUND
The INDIA SHEET METAL INDUSTRIES An existing profit making SSSBE was incorporated on 07/08/1995 MID ACT 1961 for manufacturing of tin/metal containers at LATUR due to less taxation The company had provided quality products to the TINA OIL MILLS for the last 10 years. The main object to choose the location was that it was near to Tina oil mills so that the supply of the products would be easier and there were also less transportation charges. The company use to produce oil tins the only product with production of 1000 tins on daily basis ensuring speedy and on time delivery. The enterprise has its annual turnover of approx 12 lack p.a The company offers a single range of service, prototype development and pre-production through final approval. The production was fully depending upon the contract which is given by the Tina oil mills. The company was in success for the last seven years from when it was started (1995-2002) but due to the competition in the market the company started getting loses. The main reason behind the losses was thats competitor company submitted his tender to TINA OIL MILLS with lower price and succeed in achieving the contract. After that great losses were suffered by the company for 2 yrs. (2002-2004) because of it the company was shut down in the year 2005.

RIZVI COLLEGE

Page1

INTRODUCTION

Management of small scale industries

Er.H.manjunath

The company got subsidy from the MIDC because of this reason after suffering the huge losses the industry cant be sold out without completing the 20yrs of agreement till the year 2015. Due to the death of Mr. HASAN KHAN now the company is in the name of his wife Mrs. ZUBEDA HASAN KHAN.

The companys AIMS

Our main business is to produce tin boxes made up of metal sheets. We use to produce 1000 tin boxes per day as per the requirement of the contract by TINA OIL MILLS. Actually we had a tie up with Tina oil mills and our contract was on the basis of providing Tin boxes with the maximum capacity of 15 kg Oil per boxes.

Governments efforts

Activities
The MIDC has been declared as an agent of the State Government for carrying out activities within the framework of the MID Act and the MID Rules. These activities are in three broad categories:

Acquisition and disposal of land. Provision of infrastructure facilities. Providing services - supply of potable water from MIDC's own water treatment plants, maintaining roads, streetlights, drainage lines etc.
Page1 INTRODUCTION

RIZVI COLLEGE

Management of small scale industries

Er.H.manjunath

Because of all these facilities provided by the MIDCMAHARASHTRA INDUSTRIAL DEVELOPMENT CORPORATION there was a good production flow of the company.

Strength of the company

The company was based on sole proprietorship. The quality of the product was comparable to any in the industry. The sincerity and the integrity of the owner could not be questioned. The contractor company was (TINA OIL MILLS) nearby. The coordination between the owner and labors were good. There were good relationship between the employees and the management. The owner human approach and considerate attitude to labor has been very helpful in running the unit. The over head expenses, especially of the owners were kept at the minimum level. There was perfect monitoring in the organization with respect to the production.

RIZVI COLLEGE

Page1

INTRODUCTION

Management of small scale industries

Er.H.manjunath

Failures of the enterprises

Shortage of labour As the labour was not available at the right time as described above in the history they had to hire labour from a distance and have to pay them higher wages. Higher transportation charges The cost of production per unit of raw material was seems to be increasing due to transportation charges form Mumbai to latur for this purpose its seems to be a faulty planning of the owner Lack of strategies The enterprise used to manufacture only product that is tin box and there were no product lines decided by the company. The enterprise had to face the competitors with respect to the cost of the material that is the competitors comp. was supplying the tin box with low prices because of which the order or contract by tin oil company was conquered by the competitors.
RIZVI COLLEGE Page1 INTRODUCTION

Management of small scale industries

Er.H.manjunath

Distribution contact The enterprise failed to keep close contact with the dealers, distributors and wholesalers. Excessive inventories The raw materials kept in warehouse were econverted into inventories which resulted excessive inventory because of the contract gained by the competitors.

Faulty about the future planning The most important one is faulty planning and inadequate appraisal of projects. No proper viability units are sponsored.

Outdated technology The enterprise were using machinery that were manually handled instead of using modern technology (i.e. automatic machinery) Lack of testing the quality Due to unavailability of the testing machines and modern technology the quality of the resources were hampering and as a result the process of production got effected (i.e. not a smooth flow of production)

RIZVI COLLEGE

Page1

INTRODUCTION

Management of small scale industries

Er.H.manjunath

Reviewing the enterprise According to our views: We will apply the SINGLE WINDOW SCHEME The small industries development bank of India has started this scheme in order to facilitate women entrepreneurs in getting term loans and working capital from one and the same unit. This scheme is applicable to the project where the total expenses are up to Rs.20lacks. The loan has to be repaid within a period of 10yrs. The scheme is implemented through Finance Corporation. Term loan and working capital is also provided by the corporation.

We will also approach to MITCON (i.e. Maharashtra industrial and technical consultancy organization limited.)MIDC is the shareholder institute of MITCON Roles of MITCON 1. It gives education and information services to the entrepreneurs. 2. Nursing of new and weak industries. 3. Services for industrialization growth.

RIZVI COLLEGE

Page1

INTRODUCTION

Management of small scale industries

Er.H.manjunath

4. New technological research and production, growth technology and services to bring up the industries.

The capital which will be getting 20 lakhs from the small industries development banks will be invested in: Purchasing raw materials for the production purpose. Adopting new machinery for the effective production. Setting up proper production process like warehouses quality inspection and production planning. Hiring skills labour force and converting the semiskills labour to skill labour by arranging training programmes.

Efforts will taken to improve the progress Market survey Analyzing the market of latur and coming in collaboration with the leading manufacturer of oils company by this efforts we can increase our contact with others oils enterprise. Marketing strategies to be adopted Product lines to be implemented by also making other tin products.

RIZVI COLLEGE

Page1

INTRODUCTION