SIZE OF

INDUSTRIAL
UNITS IN INDIA
Presented To : Ms. Neetu
Presented By : Neetika Saini
Program : B.B.A 6th
Roll No. : GU-2016-0044
 Large Scale Industries
1. Industries which requires huge
infrastructure and manpower with an inflow
of capital assets are Large Scale Industries.
2. In India, large-scale industries are the ones
with a fixed asset of more than one hundred
million rupees or Rs. 10 crores.
3. The Indian economy relies heavily on such
industries for economic growth, generation
of foreign currency, and the creation of job
opportunities for millions of Indians.
 EXAMPLES OF LARGE
SCALE INDUSTRIES
1. Iron and Steel Industry
2. Textile Industry
3. Automobile Manufacturing Industry
IRON AND STEEL
INDUSTRY
Introduction
India was the world’s third-largest steel producer and third-largest
steel consumer in 2017.
Market Size
•India’s finished steel consumption grew at a CAGR(Compound
Annual Growth Rate) of 5.69 per cent during FY08-FY18 to reach
90.68 MT.
•India’s crude steel and finished steel production increased to
102.34 MT and 104.98 MT in 2017-18, respectively.
•In 2017-18, the country’s finished steel exports increased 17 per
cent year-on-year to 9.62 million tonnes (MT), as compared to
8.24 MT in 2016-17.
•Exports and imports of finished steel stood at 4.33 MT and 5.41
MT, during Apr-Nov 2018 (P).
Investments
Some of the major investments in the Indian steel
industry are as follows:
•As of December 2018, Vedanta Group is going to set up
a one million tonne capacity steel plant in Jharkhand
with an investment of Rs 22,000 crore (US$ 3.13 billion).
• Tata Steel won the bid to acquire Bhushan Steel by
offering a consideration of US$ 5,461.60 million.
•JSW Steel has planned a US$ 4.14 billion capital
expenditure programme to increase its overall steel
output capacity from 18 million tonnes to 23 million
tonnes by 2020.
TEXTILE INDUSTRY
Introduction
India’s textiles sector is one of the oldest industries in Indian
economy dating back several centuries. India's overall textile
exports during FY 2017-18 stood at US$ 39.2 billion.
Market Size
•The Indian textiles industry, currently estimated at
around US$ 150 billion, is expected to reach US$ 250
billion by 2019.
• India’s textiles industry contributed seven per cent of
the industry output (in value terms) of India in 2017-18.
•It contributed two per cent to the GDP of India and
employs more than 45 million people in 2017-18.
•The sector contributed 15 per cent to the export
earnings of India in 2017-18.
Investment
Some of the major investments in the Indian textiles industry are
as follows:
1. In May 2018, textiles sector recorded investments worth Rs
27,000 crore (US$ 4.19 billion) since June 2017.
2. The Government of India announced a Special Package to
boost exports by US$ 31 billion, create one crore job
opportunities and attract investments worth Rs 800.00 billion
(US$ 11.93 billion) during 2018-2020.
AUTOMOBILE
INDUSTRY
Introduction
The Indian auto industry became the 4th largest in the world with
sales increasing 9.5 per cent year-on-year to 4.02 million units
(excluding two wheelers) in 2017. It was the 7th largest
manufacturer of commercial vehicles in 2017.
Market Size
•Domestic automobile production increased at 7.08 per cent
CAGR between FY13-18 with 29.07 million vehicles manufactured
in the country in FY18. During April 2018-January 2019,
automobile production increased 9.84 per cent year-on-year to
reach 26.26 million vehicle units.
•Sales of electric two-wheelers are estimated to have crossed
55,000 vehicles in 2017-18.
Investments
Some of the recent/planned investments and
developments in the automobile sector in India are
as follows:
1. Ashok Leyland has planned a capital expenditure of
Rs 1,000 crore (US$ 155.20 million) to launch 20-
25 new models across various commercial vehicle
categories in 2018-19.
2. Hyundai is planning to invest US$ 1 billion in India
by 2020.
3. Mercedes Benz has increased the manufacturing
capacity of its Chakan Plant to 20,000 units per
year, highest for any luxury car manufacturing in
India.
SMALL SCALE INDUSTRIES
Essentially small scale industries comprise of small
enterprises who manufacture goods or services with
the help of relatively smaller machines and a few
workers and employees.
Basically, the enterprise must fall under the
guidelines set by the Government of India. At the
time being such limits are as follows:-
1. For Manufacturing Units for Goods: Investment in
plant and machinery must be between 25 lakhs
and five crores.
2. For Service Providers: Investment in machinery
must be between 10 lakhs and two crores.
 Examples and Ideas of Small Scale Industries
1. Bakeries
2. Candles
3. School stationeries
4. Leather belt
5. Small toys
6. Paper Bags
7. Xerox and printing
8. T-shirt Printing
9. Photography
Characteristics of Small Scale Industries
1. Ownership: Such units are generally under single
ownership. So it is a sole proprietorship or
sometimes a partnership.
2. Management: Both the management and the control
generally is with the owner/owners. So the owner is
actively involved with the daily running of the
business.
3. Limited Reach: Small scale industries have a
restricted area of operations. So they meet local and
regional demand.
4. Labor Intensive: These small scale industries tend to
use labor and manpower for their production
activities. So their dependence on technology is
pretty limited.
Role of Small Scale Sector
1. Contributes 8% of country’s GDP.
2. 45% of manufactured output of India is
from this sector.
3. Contributes 45% to India’s total exports.
4. Produces 8000 value added products.
5. Employs 40 % of work force in India.
6. Maintains a consistent growth rate of 10 %
annually.