MAHARASHTRA STATE BOARD TECHNICAL

EDUCATION, MUMBAI.
Micro Project Report
ON
Study of management principles applied to a small scale industry

Guided By:-
PROF :- NADIM ANSARI

Submitted by:-
Md Tauqueer Alam
Rashid Parwez
Adnan Irshad
Atique

Department of Electrical Engineering

JAMIA POLYTECHNIC
AKKALKUWA DIST.NANDURBAR
Akkalkuwa (425415)
 ANNEXURE -1

EVALUATION SHEET FOR THE MICROPROJECT

COURSE : MAN COURSE CODE: 22509

SEMESTER: 5TH DEPARTMENT: Electrical

ENGG

TITTLE OF PROJECT :- Study of management principles applied to a small scale

industry

CO’S ADDRESSED BY THE MICROPROJECT:-

a. Use basic management principles to execute daily activities.
b. Use principles of planning and organising for accomplishment of tasks.
c. Use principles of directing and controlling for implementing the plans.
d. Apply principles of safety management in all activities.
e. Understand various provisions of industrial acts.

Roll No. Student Name Marks Out Of Marks Out Of 4 Total Out Of 10
6

(Name & Signature of faculty)

Micro project Guide Head Of Dept Principal

Raipure Sir S V ALI S V AL
 Jamia Polytechnic Akkalkuwa

CERTIFICATE
This Is To Certify That Mr. Of Branch
Enrolment No.
Has Completed His Micro Project Enitled
Of Subject as per Requirment
Of( Semester) MSBTE I- Scheme Curriculum Under The
Guidence Of Satisfactorily During
Academic Year 2023-24.

Signature of faculty:-

Micro project Guide Head Of Dept Principal

Raipure Sir S V ALI S V ALI
 ACKNOWLEDGEMENT

The most Beneficial and The most merciful.it is with deepest serve gratitude of
the Al-mighty that gives me strength and ability to complete this micro project.

First of all, I would like to take this opportunity to Express my special thanks to
my project guide who was guide me *HOD,AND PRINCIPAL,S V ALI *, for
the guidance, assistance, advise, kindness and also being helpful to guide me all
the way through The development and progress of my micro project. Above all
the most needed, he provide me unflinching encouragement and support in
various ways.

My appreciation also goes to my friend for their advice, supervisions, and

crucial contribution, and cooperation during the completion of my micro project.
Thank you for lending hands during progress of this micro project.

Finally, I also would like to express my exceptional thanks to my beloved

parents for their support and unending prayers and helps me directly or indirectly
in successful finishing of my micro project.

UNDER THE GUIDANCE BY:- PROF RAIRURE SIR

 ANNEXURE -01

Jamia Polytechnic
Akkalkuwa Title Of Micro-
Project:-
Study of management principles applied to a small scale industry

1.0 Brief Introduction:-

 Management principles can be applied to all types of organizations, including small
scale industries (SSIs). SSIs are industries that manufacture, provide services, or produce
on a small or micro scale. Examples of SSIs include napkins, tissues, chocolates, water
bottles, small toys, papers, and pens.

 The applicability of management principles varies depending on the nature of the

industry, business activities, and scale of operations. For example, SSIs need to
upgrade their professional organization methods to achieve financial, social, and
environmental improvement. The integration of lean and Six Sigma is one response to
this challenge.

 Small scale industries are important because they help governments expand infrastructure
and manufacturing, and reduce problems such as pollution, slums, poverty, and many
development practices.

2.0 Course Outcomes Addressed:-

a. Use basic management principles to execute daily activities

b. Use principles of planning and organising for accomplishment of tasks.

c. Use principles of directing and controlling for implementing the plans.

d. Apply principles of safety management in all activities.

e. Understand various provisions of industrial acts

3.0 Proposed Methodology:-

For the purpose of the study, data has been collected from both primary and secondary sources.
Primary data is obtained from the small-scale engineering industries. There are a number of
small-scale engineering industries functioning in Visakhpatnam city. Fabrication units has been
taken as the main unit for the study as there are number of consumers depends on fabrication
works. There are a total of 32,375 units existing in Visakhapatnam district. Out of these total
units engineering units constitute 7786. Among these, a total of 154 units have been selected on
the basis of random sampling for undertaking the survey. A structured questionnaire has been
prepared and canvassed among the respondents. The data so collected is processed, tabulated and
the analysis is presented hereunder.

4.0 Action Plan:-

Sr. Details Of Activity Planned Planned Name of

No Start Date Finish Date Responsible
Team
Members
1. Formation of group 24-07-2023 07-08-2023 ALL

2. Selection of title 07-08-2023 21-08-2023 ALL

3. Submission of 21-08-2023 04-09-2023 ALL

proposal

4. Collection of 04-09-2023 18-09-2023 ALL

material

5. Literature collection 18-09-2023 09-10-2023 ALL

6. Preparation reports 09-10-2023 23-10-2023 ALL

7. Submission of micro 23-10-2023 06-11-2023 ALL

project
5.0 Resource Required :-

Sr. No Name Of Resource Specification Qty

1. Hardware Computer (i3-i5 1

computer preferable RAM min
system 2GB and onwards,
HDD free space I GB
or more)
2. Operating system Windows 11 1

3. Software Microsoft word 1

4. Management – Virat V. Giri, 1

Techknowledge Dr. Yogeshwar
Publications

5. Management for V. S. Bagad 1

MSBTE I Scheme

6. Pratik Tawade 1
Management For , Dr. Ranjitsinh
Deshmukh
MSBTE
 Annexure :-02

Micro-Project Proposal
Case study of past major grid power failure

1.0 Rationale/Introduction :-
Small Scale Industrial sector has performed exceedingly well and enabled our country to achieve
a wide measure of industrial growth and diversification. By its less capital intensive and high
labor absorption nature, SSI sector has made significant contributions to employment generation
and also to rural industrialization.
This sector is ideally suited to build on the strengths of our traditional skills and knowledge, by
infusion of technologies, capital and innovative marketing practices. In the present liberalized
and globalised economy the significance of productivity in the development of SSI sector needs
to be recognized. In the recent years, the liberalized economy has resulted in a shift from
protective policies to market-oriented environment.

Under the new dispensation people have become skeptical about the fate of the small business
and often believe that they will not be able to survive in the new competitive environment. But
this is not correct. Although the new paradigm makes things a little more difficult for the small
enterprises, as a result of this liberalized economy, the market is likely to grow faster and
create more opportunities for small industries to participate.

In addition to this, the growth of the services sector as well as the knowledge economy will
create a greater demand for customized services and this will generate specific demand for
outsourcing, which is an obvious market for small enterprises.

Objectives of the Study:-

1. To create job opportunities for the population.

2. To help in the development of the rural areas of the economy.
3. To play an active role in reducing the regional imbalances in the nation.
4. To help in improving the standard of living for people in rural areas.
5. .To ensure there is equal distribution of wealth and income.
2.0 Aims/Benefits of the Micro-Project:-
Aim: -
The project entitled “Study of Management Principles Applied to A Small Scale
Industries” is aimed at providing knowledge of various types of principles applied to Small
scale industries.

Benefits:-
1. More Production

2. Internal Economies

3. External Economies

4. Cheap and Easy Loan

3.0 Course Outcomes Addressed:-

a. Use basic management principles to execute daily activities.
b. Use principles of planning and organising for accomplishment of tasks.
c. Use principles of directing and controlling for implementing the plans.
 CLASSIFICATION OF SSI:-
 Manufacturing:-

Village, Cottage industry, Handloom, Handicrafts, ancillary Units.

 Trading:-

Wholesale, Retail, Commission agents.

 Service:-

Professional services-e.g. medicine, accounting, law etc.

Commercial service-e.g. warehouse, cold storage.
Fashion-dry cleaning, repairing, maintenance

OBJECTIVES OF SSI:-

 Create and generate employment.

 Distribute economic advantage
 Raise Standard of living
 Increase Production
 Promotes development of backward areas.

Traditional and Modern Small Scale Industries and Their Products:

The traditional small-scale industries clearly differ from their modern counterparts in many
respects. The traditional units are highly labor consuming with their age-old machine resend
conventional techniques of production resulting in poor productivity rate whereas the
modern small-scale units are much more productive with less manpower and more
sophisticated equipments. Some of the traditional small scale industries are that of Khadi and
Handloom, coir,village industries etc.

The modern small scale industries are that of garments, leather products etc. But in today's
scenario, most of the small scale industries in India are modern small scale industries.

The items manufactured in modern Small-scale service & Business enterprises in India now
include:-
Rubber Products Electronic Components And Equipments

Plastic Products Automobile Parts

Chemical Products Bicycle Parts

Glass And Ceramics Instruments

Mechanical Engineering Items Sports Goods

Hardware Stationery Items

Electrical Items Clocks And Watches.

Distinction Between Traditional And Modern Small Industries:-

Traditional small industries Modern small industries

Include khadi, handloom, village Variety of goods including simple and

industries, handicrafts, sericulture, coir etc sophisticated goods such as TV sets, engineering
. products and electronic control systems.

Highly labor-intensive Use highly sophisticated equipment and machinery

 Since independence the Government of India has nurtured this sector with special care
with the following aims:

 To develop this sector as a major source of employment

 To encourage decentralized industrial expansion
 To ensure equitable distribution of income.
 To mobilize capital investment and entrepreneurship skills
Need to Boost Small Scale Industries:-

Realizing the importance of small scale industries in Indian economy, the government is trying
to develop this industry keeping in mind the following aims:-

 To increase employment.

 To prevent unequal distribution of income

.
 To develop capital investment.

SSIs IN INDIA

Estimated No. of Units 3.57 Million

Employment 19.96 Million

Share in Industrial Value Added 40%

Share in Total Exports 3.57 Million (45-50%)

Total Number of Items Produced Over 9,000

Number of Reserved Items 298

 Infrastructure For Modernization And Growth Of SSIs:-

Institution Centers Centers

Small Industries Established in 1954,Branches Technology development, energy

Development spread all over country conservation, pollution control, ISO
Organization 9000 etc, training, seminars ,plant
(SIDO) visits.

Small Industries As of 1991, 26 SISIs Provide assistance in all phases of

Services Institutes manufacturing - identify items for
(SISIs) manufacturing, provide info on
technologies, organize workshops.
Have well-equipped workshops and
labs offering testing services to
SSIs.
Directorate of 6 regional and 30 Industrial development in states.
Industries District level establishments Implementation of SSI promotional
schemes

Began in 1979,422 DICs Provide and arrange a package of

District Industries operating in 431districts assistance for credit guidance, training,
Centers(DIC) (counties) marketing.

National Small Has 3 prototype development Provide equipment on hire-purchase

Industries and testing centers in basis. Has marketing boards to promote
Corporation country. marketing. Testing centers also provide
(NSIC) advanced technical training.

NISIET Established in 1962 by Training, research and consultancy in

(extension training Government of India SSI related fields of development,
institute) extension and information for
development.

SIDBI (Bank) Established under special act To ensure increased flow of financial
of Parliament in 1990.33 assistance to SSIs. Direct assistance and
offices (5 regional and28 indirect assistance schemes
branch offices) (e.g. refinancing)

Information Banks Under system called National Provides information, particularly with
Information System for respect to latest developments in
Science and field of technology.
Technology (NISSAT)
Other organizations involved are:-
 Trade Development Authority of India
 Regional Testing Centers
 Indian Institutes of Technology (IITs)
 Universities, polytechnics and colleges.

 These provide equipment, expert personnel and testing facilities. Each institution has a
consulting division to help SSIs.

 Establishment of Technology Development and Modernization Fund under the scheme of

direct Assistance of the SIDBI.

 Enterprise Strengthening service under SIDBI : Under this service, there are specific
programs including technology transfer, technology upgradation in in dentified industry
clusters And management development.

 Technology Development Board under the Department of Science and Technology.

 SIDO and SISIs have introduced a program for promoting technological modernization
of the SSIs Most of the policies before the 1990s were aimed at protecting the small
sector rather than making it competitive.

Role of Small Scale Industries in the Indian Economy:-

Following are the roles of small scale industries in the Indian Economy

1. They are the major sources of employment for the people living in rural areas
and therefore, play a vital role in generating employment in an economy.
2. Small scale industries account for almost 40% of the total goods and services in India
hence, is a very important contributor to the economy.
3. Small scale industries help in promoting the Make in India initiative which helps
in increasing demand for local made products.
4. Majority of the export materials are provided to the Indian companies from the small
scale industries. It is estimated that around 50% of all the material exported are
produced from such industries.
FISCAL INCENTIVES TO SSIs

Fiscal incentives are provided through tax concessions granted in the form of
exemptions of direct or indirect taxes leviable on production or profits, besides special tax
concessions. These incentives have been provided to promote the SSIs.
 TAX HOLIDAY:-

With effect from financial year 2005-06, deduction in respect of profits and gains for small
scale industrial undertakings is available under Section 80IB.

Small scale industrial undertaking can claim deduction at the following rates.

a) If SSI unit is owned by a company, the deduction available is 30% for first 10 years.

b) If SSI unit is owned by a co-operative society, the deduction to be availed is 25% for
first10 years, and

c) If any other person owns SSI unit, the deduction to be claimed is 25% for first 10
years.

The small scale units can avail this tax exemption facility only after fulfilling the following
conditions:-

a) No small scale or ancillary undertaking shall be subsidiary of, or owned or controlled

by other industrial undertaking.

b) SSI unit can manufacture any nature/type of goods/article to avail deduction.

c) They should employ at least 10 workers in a manufacturing process carried out with
the aid of power or at least 20 workers in a manufacturing process carried out without
the aid of power.

d) This tax exemption from total income is allowed from the assessment year in which
the unit begins to manufacture or produce goods or articles.

SSI in Past

While the first two decades after Independence focused on institutional support, the third decade
saw the use of reservation of products for exclusive manufacturers in small sector as the
preferred policy intervention. In the fourth decade, the endeavor was to promote linkages of
SMEs with large units, specially the public sector units (PSUS).
Liberalisation of the domestic economy made it easy for fresh capacity came up in the
form of large units across Industry segments. Despite substantial increase in the number of
players in each industry segment, the Small Scale sector has managed to hold on its own and
withstand the onslaught of competition. In certain cases, they have proved themselves to be
extremely adopt at beating large industrial houses which were enable to respond promptly to
changing market needs or innovate in time.
These were only Five pillars of SSI in India:
Handlooms:-

Handlooms form a part of heritage of India and richness and diversity of our country
and artistry of the weavers. It plays a very important role in the economy. Handloom is the
largest economic activity after agriculture. This sector is estimated to provide direct and indirect
employment Due to effective State intervention through financial assistance and implementation
of various developmental and welfare schemes, this sector has been able to withstand
competition from the power loom and mill sectors. This sector contributes substantially to the
export income of the country.

Powerlooms:-

The decentralised power loom sector plays an important role in meeting the cloting
needs of the country. The power loom industry produces a variety of cloth both grey as well as
processed bearing intricate designs.

Textiles:-
The Textile Industry of the State is the forerunner in Industrial development and is providing
massive employment. It is predominantly spinning oriented.

Garments:
Garments occupy a predominant position in World trade as it is the second fastest growing
product category next only to office and telecom equipment.

Handicraft:-
The Handicrafts sector is of special significance in the country's economy due to its contribution
to employment generation and foreign exchange earning through exports as well as retaining
heritage and tradition.

Sickness in the SSI Sector:-

As on March 31, 2001, there were 2,49,630 sick SSI units which had obtained loans from banks.
An amount of Rs. 4,506 crore of bank credit was blocked in these units. Of these only13,076
units were considered potentially viable by the banks with outstanding credit of Rs. 399crore.
Further, banks had identified 2,25,488 units with outstanding bank credit amounting to Rs. 3,943
crore as unviable.
 Rehabilitation of sick units is a costly proposition as it involves rescheduling of past
over dues with concessions on interest amount due, additional credit for modernization and
technology upgradation and provision for fresh working capital. Presently, the State Level Inter-
Institutional Committee (SLIIC) of banks and financial institutions is the only forum looking into
rehabilitation of potentially viable sick SSI units.

SSI in Present

The process of liberalisation, while providing tremendous opportunities, has thrown up new
challenges for the Indian small-scale industries sector.

Due to the unique characteristic of resilience and flexibility, the SSI sector has generally
performed better than the manufacturing and the overall industry sector.

Like production, export from the SSI sector also have generally shown better growth trends
as compared to overall exports of the country, barring a few years.

In the view of the changes in EXIM policies and the Government stance, export from SSI
sector have increased.

Employment Generation:-

SSI Sector in India creates largest employment opportunities for the Indian populace, next
only to Agriculture. It has been estimated that a Crore rupees of investment in fixed assets in the
small scale sector generates employment for persons.
Production:-

The small scale industries sector plays a vital role for the growth of the country.
It contributes 40% of the gross manufacture to the Indian economy.

It has been estimated that a Crore rupees of investment in fixed assets in the small scale
sector produces lakhs of goods or services with an approximate value addition of 10 % points.

The small scale sector has grown rapidly over the years. The growth rates during the various
plan periods have been very impressive.

Export contribution:-

o SSI Sector plays a major role in India's present export performance. 45%-50% of the
Indian Exports 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

o Besides direct exports, it is estimated that small scale industrial units contribute
around15% 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.

o It would surprise many to know that non-traditional products account for more than95%
of the SSI exports.

o The export from SSI sector has been clocking excellent growth rates in this decade. It has
been mostly fuelled by the performance of garment, leather and gems and jewellery units
from this sector.

Economic Indicators:-

The Small Scale Industry today constitutes a very important segment of the Indian economy.
The development of this sector came about primarily due to the vision of our late Prime Minister
Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form
of small scale enterprises.

Small Scale Sector has emerged as a dynamic and vibrant sector of the economy.

 Today, it accounts for nearly 35% of the gross value of output in the manufacturing
sector and over 40% of the total exports from the country.

 In terms of value added this sector accounts for about 40% of the value added in the
manufacturing sector.
  The sector's contribution to employment is next only to agriculture in India. It is therefore
an excellent sector of economy for investment.

SSI in Future
To encourage R&D in the SSI sector, provision of suitable fiscal incentive could be considered.
It has been suggested that a “Renewal / Upgradation of Technology fund for SSI Units” be
created and the contribution made out of their profit be exempted from income tax.

Opportunities:-

Small industry sector has performed exceedingly well and enabled our country to achieve a wide
measure of industrial growth and diversification.

By its less capital intensive and high labou absorbtion nature, SSI sector has made significant
contributions to employment generation and also to rural industrialisation.This sector is ideally
suited to build on the strengths of our traditional skills and knowledge, by infusion of
technologies, capital and innovative marketing practices.

The capacity building for SSI sector in terms of infrastructural facilities, availability of raw
material, R&D, development of human skills, dissemination of information and formation of
industry cluster need to be developed to take advantage of new opportunities

The opportunities in the small scale sector are enormous due to the following factors:-

 Less Capital Intensive

 Extensive Promotion & Support by the Government

 Reservation for Exclusive Manufacture by small scale sector

 Project Profiles
  Funding

 Finance & Subsidies

 Machinery Procurement

 Raw Material Procurement

 Manpower Training

 Technical & Managerial skills

 Tools & Tools utilisation support

 Reservation for Exclusive Purchase by Government

 Export Promotion

 Growth in demand in the domestic market size due to overall economic growth
Increasing Export Potential for Indian products.

CONCLISION:-

Small Scale Industry sector has emerged as India’s engine of growth in the New
Millennium. The SSI sector accounts for nearly 40 per cent of value added in the manufacturing
sector and 34 per cent of total exports from the country. Through 95 per cent of industrial units
in the country, the sector provides employment to about 20 Million persons.

The Government has recognized its importance for the economy and its intention towards
promotion of SSIs is reflected in various Industrial policy Resolutions right from the year 1948.
The primary objective of the Small Scale Industrial Policy during the nineties was to impart
more vitality and growth-impetus to the sector to enable it to contribute its mite fully to the
economy, particularly in terms of growth of output, employment and exports. The sector has
been substantially delicensed. Further efforts would be made to deregulate and debureaucratise
the sector with a view to remove all fetters on its growth potential, reposing greater faith in small
and young entrepreneurs. All statutes, regulations and procedures were reviewed and modified,
wherever necessary, to ensure that their operations did not militate against the interests of the
small and village enterprises.
 References:-

 https://www.studocu.com/in/document/marathwada-
mitra-mandals-polytechnic/system/man-study-of-
management-principles-applied-to-large-scale-
industries/25922706
 https://www.scribd.com/document/205668620/manageme
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 https://www.coursehero.com/file/144135830/Study-of-
management-principles-applied-to-a-small-scale-
industrypdf/
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