An assignment on role of association for

devlope small scale industries

Index
No. Content
1. Introduction of small scale industries
2. Importance of small scale industries
3. Problems of small scale industries
4. Investment limit of small scale industries
5. List of small scale industries
6. South Gujarat Chamber of Commerce & Industry – introduction
7. SGCCI – mission & vision
8. SGCCI – objective
9. SGCCI – certificate of origin
10. SGCCI – activities
11. SGCCI – workshop
12. SGCCI – membership benefits
13. SGCCI – membership type
14. SGCCI – membership fee structure
15. Mantra Textile Association – Introduction
16. Facilities at MANTRA
17. MANTRA – R & D, infrastructure & testing facilities
18. MANTRA – library facility
19. MANTRA – activities
20. MANTRA – testing & technical services
Introduction
Small Scale Industries may sound small but actually plays a very important part in the
overall growth of an economy. Small Scale Industries can be characterized by the unique feature
of labour intensiveness. The total number of people employed in this industry has been
calculated to be near about one crore and ninety lakhs in India, the main proponents of Small
scale industries.

The importance of this industry increases manifold due to the immense employment
generating potential. The countries which are characterized by acute unemployment problem
especially put emphasis on the model of Small Scale Industries

. It has been observed that India along with the countries in the Indian continent have gone long
strides in this field.

Small Scale Industries enjoy a lot of help and encouragement from the government
through protecting these industries from the direct competition of the large scale ones, provision
of subsidies in the form of capital, lenient tax structure for this industry and many more.

Importance of Small Scale Industries:

Employment & Labour intensive:

Small scale industries are highly employment potential specially in the countries like India
where, there is shortage of capital & more availability of labour. As since majority of small scale
industries are labour intensive. They require less capital & more of labour which helps in
absorbing massive man power in economy.
Low capital-output ratio:

As compared to that of heavy & basic industries, small scale inustries have low capital output
ratio i.e more production can be obtained with less investment. Besides this, as these industries
are labiur intensive they require less capital and more of labour. Moreover they are having
dynamic potentials i.e can adapt themselves according to changing market conditions.

Low gestation period:

As compared to that of large scale industries, small scale industries start giving production in a
relatively shorter period of time. It means, the time-leg between investment and production is
less. This inturn helps in timely supply of goods resulting less scarcity and thus control over
inflationary pressures.

Decentralization:

Usually, heavy industries requires latest technology and high infrastructure facilities. So they are
centered in urban areas only, but small scale industries do not require more infrastructure facility
and they can easily be set up in different ports of country which helps in utilising local resources
like raw materials, idle savings, local talents etc. Thus their standard of living gets improved.
Moreover development of backword regions results into lesser problem of urbanization.

Equal distribution of income:

There is more equitable distribution of income in following ways:-

  Because of widespread ownership as compared to that of large scale industries.
 Because these industries are labour intensive, more gets distribution amongst a very large
number of people.

Balance regional development:

Small scall industries can easily be set up different regions of country according to the
development potentialities & availabilities of resources. As these industries use local land,
labour, capital as well as personal skills and mostly build to cater the local demand. As since
large scale industries cannot be at up in every village or taluka small scale industries are
developed. Thus, help in balancing the regional development.

Use of latent resources:

As since, small scale industries are widely spreaded, they make use of latent resources like local
entrepreneurial abilities, family-labour, artisans skill, small saving of community etc. They also
encourages the growth of small entrepreneur class which introduces a dynamic element in the
economy. They provide a training field in which they take risk, experiment and innovate. Eg. In
Japan.

Saving in social cost:

Small scale industris helps in economising the social costs by discouraging migration to matro-
politan areas. As people get employed in rural areas itself the social cost in terms of creating
infrastructural facilities in urban areas get redused. Moreover, less migration also reduces the
problems of urbanization like growth of slums, air & water pollution etc.
Export earnings:

The product of small scale induatries like handicrafts, embroidery, handlooms, metal works,
carpets, wood carving etc are in great demand in foreign countries. Small scale industries
account for about 35% in our total export earnings.

Ancillary industries:

Small scale industries acts as helping industries to heavy industries, as since many of
components required by large industries are easily produced & supplied by small scale
industries. Eg. Bolts & nuts, spare parts etc.

Problems of Small Scale Industries

Problem of finance:

This is the most important problem faced by small scale industries, due to which, causes
industrial sickness in the following ways:

 Inadequate supply of credit against required working capital & fixed capital.
 Credit not available on time.

Beside this, more attention is paid to large scale units as compared to small scale industries.
Moreover, as these industries have low profitability, they posses low credit worthiness. As a
result they have depend of private finance, even if available at higher interest which increase the
costs in finnally reducing profits.
Problem of availability of raw materials:

This sector gets a ‘residuary’ treatment in allocation of raw materials. Besides this small scale
industries do not get equal treatment as large scale industries in distribution of scare inputs. So
they have to purchase raw materal from black market even if they are sub-standard. Moreover,
they have to accept whatever is available, of whatever quality& at high prices resulting low
profits.

Problem of marketing:

This problem arise because of:

 Small scale of production

 Lack of proper grading & standard
 Inadequate market intelligence
 Lack of knowledge ragarding changing market conditions.
 Competition
 Inefficient stock holding capacity.

Low level of technology:

 Small scale industries use traditional techniques of production which is expensive, time
consuming leading to poor quality of production at high costs.
 There is lack of knowledge regarding latest technologies & its mechanism in the
production of small scale industries.
 These is very low scope of R&D in this field.
 Inadequate facilities for providing training.
Competition from Large scale Industries:

 Large scale industries are organised on modern lines and have relatively more access to
latest technology.
 They are having bulk production, benefit of quality control, market research advertising
& publicity etc.

As this advantages are not being found in small scale industries, they are unable to stand up
against the large scale industries in competition.

Inefficient functioning:

This problem is mainly because:

 50-60% of small scale industries production capacity remains unutilised due to inefficient
managerial operations.
 There is very little research, survey, evolution etc in matters like location, financial
ability, market study etc.

Thus, results in high cost & poor quality of products.

Uneven dispesal:

According to latest study, about 60% of small scale industries have located in the state like
Punjab, Uttar Pradesh, Madhya Pradesh, West Bangal, Gujarat, Maharastra, Karnataka, Andhra
Pradesh, Tamilnadu etcthat also even only in metropolitan cities like belt of Mehsana-Vapi in
Gujarat, Mumbai-Pune belt in Maharastra etc. this is also major problem of small scale
industries.

Industrial sickness:
  At end of march 2006, the total number of sick small scale industries was about 1.38 lakh
and the bank money blocked in these industries were about Rs 5380 crs.
 This loss is not only in financial sense but also in real terms like less production, less
export & less employment.

Investment limit of small scale industries

YEAR INVESTMENT LIMITS

1950 Up to Rs 5 lacs in fixed assets

1960 Up to Rs 5 lacs in Plant & Machiner

1966 Up to Rs 7.5 lacs in Plant & Machinery

1975 Up to Rs 10 lacs in Plant & Machinery

1980 Up to Rs 20 lacs in Plant & Machinery

1985 Up to Rs 35 lacs in Plant & Machinery

1991 Up to Rs 60 lacs in Plant & Machinery

1997

(Dec) Up to Rs 100 lacs in Plant & Machinery

List of small scale industry

List of Items Reserved for Exclusive Manufacture
Food and Allied Industries

Textile Products Including Hosiery

Art Silk/Man-Made Fibre Hosiery

Wood and Wood Products

Paper Products

Leather And Leather Products Including Footwear

Rubber Products

Plastic Products

Injection Moulding Thermo Plastic Products (1)

Chemicals and Chemical Products Laboratory Chemicals And Reagents

SOUTH GUJARAT CHEMBER OF COMMERCE & INDUSTRY

About SGCCI - Background

The original predecessor body was "The Surat Chamber of Commerce" which was set up by 16
stalwarts from different trade and industry on 21st October 1940. The enthusiasm and courage of
the founding father enlarged the scope of activities in subsequent years. This name was changed
on 4th October 1965 to "The Southern Gujarat Chamber of Commerce & Industry (SGCCI)", to
widen its scope from Bharuch to Umargaon, covering entire South Gujarat.
After 60 years of its inception, SGCCI is the oldest Chamber of Gujarat and holds its place of
pride at the national scenario.

The Chamber has discharges its responsibilities not only to the trade and industry but to the
social upliftment and well being of the people of the area.

About SGCCI - Mission & Vision

The Southern Gujarat Chamber of Commerce and Industry - SGCCI was incorporated on 21st
October 1940.

SGCCI is the apex organization for trade and business in South Gujarat.

SGCCI serves as the nodal point for trade and business in South Gujarat.

SGCCI has around 3500 members inclusive of individuals, associations, companies - small,
medium and large.

SGCCI has 65 specialized committees, 8 administrative groups, 5 affiliated chambers of trade

and industry, and 85 regional affiliated associations covering almost all the sectors of the
industry of the region.

SGCCI has been accredited as an ISO 9002 organization by DNV Certification B.V. The
Netherlands

About SGCCI - Aims & Objective

The aims & objectives are well defined in the Constitution of the chamber, which seems to meet
rising expectation of the trade and industry in South Gujarat. Some of them are delineated
hereunder:
To study various issues, government actions and legislations affecting trade and industry and
making appropriate representation to the concerned authorities and governments at the national,
state and local levels.

To make effective representation to the concerned authorities for developing, promoting and
maintaining infrastructure facilities such as road, railways, airways, post, telecom, power etc.

To disseminate important economic and technical data and information on trade and industry.

To organize seminars, symposia, workshops, exhibitions and conferences to promote and evolve
technologies and develop business and management skills appropriate with emerging economic
scenario.

To maintain close affiliation with national bodies and associations such as FICCI, CII,
ASSOCHAM, IMC, ICAI, ICWAI, ICSI for furtherance of Chamber's objectives.

To provide relief during natural calamities to the society to the extent possible.

To undertake arbitration to settle commercial dispute arising in the course of business.

Services - Certificate of Origin

The Southern Gujarat Chamber of Commerce & Industry is authorized by Government of India,
Ministry of Commerce, Directorate General of Commercial Intelligence and Statistics vide letter
No. 14(1) 74EAC dated 14th May 1974 to issue Certificate of Origin in prescribed Performa to
exporters as per requirement of Article 11 of International Convention relating to customs.

Certificate of Origin is essential document for Exporters as a proof certifying that the goods are
of Indian Origin. The office bearers of the Southern Gujarat Chamber of Commerce & Industry
have been nominated to authorize to sign the Certificates of Origin as and when requested and
such certificates are validly accepted by custom departments as well as by the Consulate General
of over-seas countries. Every year the Southern Gujarat Chamber of Commerce & Industry is
issuing around 7000 Certificates of Origin to Exporters of this region.
Activities
1. Seminar On road safety, audit and review
2. Garib kalyan melo
3. How to grow your family business through generation
4. Budget meeting
5. RTI, corruption & nation development
6. Seminar on “RETAIL TRADE”
7. National workshop on ‘Disaster Management’
8. Self defence awareness
9. Meeting with all associations
10. Competition law – an over view in the context of indian market
11. Traffic and parking problems faced by textile markets
12. Seminar on ‘foreign trade policy’ – vadilal forex
13. Fashion as a career for women
14. Entrepreneurship development in women
15. An awareness programme on, prime minister employment generation programme, khadi and
villege industry commission
16. BRTS surat – new transport solutions by SMC
17. Implication of electricity regulations

Workshop

 
 Opportunities for Women Entrepreneurs in Textile Industry
 Workshop on Action, Attitude & Accomplisment
 Workshop on Greed and Fear in Capital Market
 Ladies Wing: Workshop on Self Defense
 Workshop on Disaster Management
How to become member?

Criteria to Become SGCCI Member

 Any person, firm, company, co-operative society, association, institution or organization

engaged in mercantile pursuits or interested in trade, commerce or industry and desirous
of joining the Chamber shall be eligible for the membership.
 A candidate has to apply through the SGCCI MEMBERSHIP APPLICATION FORM
Present on the website (downloadable PDF and online) One can always walk on the listed
address, and collect a physical copy of the form
 In case of individual membership, Xerox of pan card and one passport size photograph.
 In case of partnership firm, pan card of firm and photographs of all partners.
 In case of company, memorandum of article and photograph of representative.
 In case of associatition, memorandum of association.

Membership Benefit

Invaluable contribution of the Chamber by way of multifarious activities resulted in steady

growth of membership. In the Golden Jubilee Year (1990), the membership was 2500 which has
now reached up to 3500.

About 85 Associations of Trade, Professionals, Industry and Organization are affiliated with the
Chamber. Thus, the Chamber is having an indirect membership of 60000 and is the premier body
of trade and industry in South Gujarat region.

The Chamber is recognized by Government of India, Government of Gujarat and several Semi-
Government bodies and is given representations on many Central and State Government
Committees. The President and representatives of the Chamber actively participate in
deliberations held by such committees and resolve the problems of trade and industry. Some of
these Committees are listed below:
  Zonal Railway Users Consultative Committee (ZRUCC)
 Divisional Railway Consultative Committee (DRUCC)
 State Industrial Advisory Committee, Ahmedabad.
 State Ancillary Development Committee, Ahmedabad.
 Gujarat Kamdar Board
 Rozgar Nirman Committee
 Regional Employment Exchange Committee
 Gujarat Circle Postal Advisory Committee
 Telephone Advisory Committee
 Regional Sales Tax Advisory Committee
 Regional Income Tax Advisory Committee
 Central Excise Regional Advisory Committee
 Indextb Governing Body
 S. E. C. - Local Consultative Committee
 Local Port Advisory Committee
 University Employment & Information & Guidance Committee
 Income-Tax Regional Direct Taxes Advisory Committee
 Gujarat Electricity Board - Utran Circle
 Gandhi Labour Institute Committee, Ahmedabad.
 Minimum Wages Advisory Committee, Labour Commissioner, Ahmedabad.

Membership Type

The members are categorized in following categories:

 Chief Patron Members

 Patron Members
 Life Members
 Annual Members
Fee Structure

Membership Chief Patron Patron Fee Life-time Fee Annual Fee Entrance fee
Type Fee
Person 25000 Rs. 10000 Rs. 5000 Rs. 500 Rs. 300 Rs.

Venture 40000 Rs. 15000 Rs. 7500 Rs. 750 Rs. 400 Rs.

Association 50000 Rs. 20000 Rs. 10000 Rs. 1000 Rs. 500 Rs.

MANTRA TEXTILE ASSOCIATION

To cater to the ever increasing quality control needs of growing MAN-MADE
TEXTILES industry around the city of Surat in South Gujarat, in late nineteen seventies, an idea
was mooted to set up a full-fledged independent Research Association for the region. MANTRA
was to be set up on similar lines as other National Textile Research Associations.
This was with a view to carry out research and development activities as well as to provide
testing and technical service facilities to the man-made fibre textiles industry, in particular, and
other allied industries, in general, in South Gujarat.
The idea was supported by the State Government as well as Central Government and the State
Government provided land free of cost for the purpose as well as earmarked funds for the
building construction and purchase of essential equipments to carry out research and testing
activities. Since its inception in 1981, over the last 20 years, MANTRA has equipped itself
sufficiently through the grants provided by the Ministry of Textiles, Government of India, and
the support of the local industry. Throughout these twenty years, efforts have been made to fulfill
the laid-out objectives of MANTRA, and to promote quality, reduce cost of production, process
development and control of pollution and environment protection. MANTRA is one of the eight
National Textile Research Associations (TRAs) and the leading TRA in man-made fibres, linked
to the Ministry of Textiles, Government of India, and recognized as a Scientific and Industrial
Research Organization (SIRO) by Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India. 
 
To serve the local textile industry more effectively, MANTRA keeps close liaison with the
industry around, in general, and the five leading local co-operative textile societies, in particular,
viz., (a) The Surat Art Silk Cloth Manufacturers Association (SASCMA), (b) The Surat Vankar
Sahkari Sangh Ltd., (c) The SASME Co-operative Society Ltd., (d) The Udhna Group of
Weavers Producers Co-operative Society Ltd., (e) The South Gujarat Processors Association. 

Facilities
MANTRA's Testing, Technical Services and R&D infrastructural facilities have
been strengthened during the past couple of years. MANTRA is equipped with many
sophisticated instruments through the grants provided by Ministry of Textiles, Government
of India. Eco-testing Laboratory and Computer-Aided Design (CAD) Centre were set up in
1996 at MANTRA. MANTRA also has an Environmental Affairs Laboratory, Analytical
Instruments Laboratory, Modern Physical Testing Laboratory and Chemical Testing
Laboratory. The procedure for preparation of test reports and billing have been fully
computerised.
 
Facilities at MANTRA:
 R&D infrastructure and Testing facilities.
 Pilot plants
 Library facilities

R & D INFRASTRUCTURE & TESTING FACILITIES

  Physical Testing Laboratory
 Chemical Testing Laboratory
 Analytical Instruments Laboratory
 Eco-Laboratory
 Environmental Affairs Laboratory
 Computer Aided Designing Centre

PILOT PLANTS

 Pilot Melt spinning plant

 Draw-Texturising Machine
 Air-Jet Texturising Machine
 Yarn rewinder machine (To convert yarn package into cone or cheese form).
 Pirn winding machine
 Yarn Setting Autoclave
 Semi automatic Injection Moulding Machine for manufacturing self lubricating
Nylon parts for looms

LIBRARY FACILITIES AT MANTRA

 

MANTRA's library has at present 2608 books on various technical subjects. Books and
periodicals have been liberally purchased to enable scientists and researchers to update
their knowledge in their respective field of activities. Interested students and scholars also
avail the services of the library. The library of MANTRA subscribes to 19 journals of
national repute and 18 international journals, including World Textile Abstracts. 

 Details of books
 Indian journals
 Foreign journals
Activities
RESEARCH AND DEVELOPMENT

APPLICATION-ORIENTED R&D PROJECTS

This includes development of instruments for textile testing, solid waste and water
management. Texturising trials of fibres and other applied R&D projects are carried out at
MANTRA

DEVELOPMENT OF FABRIC SAMPLES

New fabric samples are prepared in an integrated approach from weaving to final finishing
of the fabricsamples are prepared in an integrated approach from weaving to final finishing
of the fabric AREAS Fibre, Polymers and Raw Material Dyes, Intermediates and
Auxiliaries Quality and Process Control Import Substitution and Export Promotion Quality
and Productivity Improvement Process Standardisation and Development Development of
Value-added Products and Diversified Products Energy and Water Conservation Pollution
control Waste minimisation and ecological aspects Technical textiles Machinery
development Eco-friendly processing Biotechnology.

AREAS

Fibre, Polymers and Raw Material

Dyes, Intermediates and Auxiliaries

Quality and Process Control

Import Substitution and Export Promotion

Quality and Productivity Improvement

Process Standardisation and Development

Development of Value-added Products and Diversified Products

Energy and Water Conservation

Pollution control

Waste minimisation and ecological aspects

Technical textiles

Machinery development

Eco-friendly processing

Biotechnology

TESTING AND TECHNICAL SERVICES

MANTRA undertakes testing of the following :

 Fibres
 Yarns
 Fabrics
 Dyes, Auxiliaries and Chemicals
 Coal, oil & thermic fluids
   Water and Effluent water (complete water analysis)
   Ambient air and stack monitoring
   Noise Pollution and its monitoring

MANTRA offers Technical Services in the following areas :

 Computer Aided Designing
 Computer Colour Matching
 Environmental Consultancy
 Environmental Audit
 Yarn and fabric defects
 Specific trouble shooting
 Energy conservation
 Project feasibility report
 Valuation certification
 Technical opinion and certification
 Product and Process Development
 Technical trials
TRAINING

MANTRA conducts short-term training courses as per the requirements of Textile

industry: Textile Laboratory Technician Supervisor for Effluent Treatment Plant (ETP)
Computer Colour Matching Application of Computer Aided Design for Textile Printing &
Weaving Training in pre-weaving, weaving and textile designing to weavers, jobbers and
designers Training in running of power loom enter and its costing.

 Supervisor for Effluent Treatment Plant (ETP)

 Supervisor for Effluent Treatment Plant (ETP)
 Computer Colour Matching
 Application of Computer Aided Design for Textile Printing & Weaving
 Training in pre-weaving, weaving and textile designing to weavers, jobbers
and designers
 Training in running of power loom enter and its costing.

POWERLOOM SERVICE CENTRES

ACTIVITIES OF PSCs

 Training

 Testing 

 Survey of powerlooms

 To provide technical assistnace and technical consultancy

 Textile design development

 Adoption of powerlooms for improvement, organisation of seminars,

workshops to create awareness on TUF and other important issues related with
powerlooms.
 Bibliography
 Visit at South gujrat chamber of commerce & industries