MARKETING IN SMALL SCALE INDUSTRIES

AVADH INDUSTRIES

Submitted by

Lavanya

BBA 5th

A7006409062

Marketing

Under the guidance of

Industry guide- Suraj Kumar Faculty guide- Prof.Hitesh Kesarwani

Designation-M.D Designation- Professor ABS.

Organization- Avadh industries Organization- ABS Lucknow

SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME BACHELORS IN BUSINESS ADMINISTRATION (2009-2012)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY LUCKNOW CAMPUS

STUDENT’S CERTIFICATE

Certified that this report is prepared based on the summer internship project undertaken by me in AVADH

INDUSTRIES from 10th may 2011 to 17th June 2011, under the able guidance of Professor Hitesh Kesarwani in partial

fulfillment of the requirement for award of degree of Bachelors of Business Administration from Amity University, Uttar

Pradesh.

Date 30.7.2011

Signature Signature Signature

Lavanya Professor Hitesh Kesarwani Professor V.P. Sahi

Student Faculty Guide Director (ABS)

FACULTY CERTIFICATE

Forwarded here with a summer internship report on “marketing in small scale industries” of

avadh industries submitted Lavanya Enrollment NO A7006409062 , student of BBA 5th Semester (2009-12)

This project work is partial fulfillment of the requirement for the degree of Bachelors in Business

Administration from Amity University Lucknow Campus, Uttar Pradesh.

PROF. ………………………..

AMITY UNIVERSITY,

LUCKNOW CAMPUS

UTTAR PRADESH

ACKNOWLEDGEMENT

I Lavanya student of BBA 5th semester of AMITY BUSINESS SCHOOL. AMITY UNIVERSITY UTTAR PRADESH, would like to extend my heartfelt gratitude to Mr. Suraj Kumar, my industry guide, from Avadh industries Lucknow for his help and guidance throughout my term as an intern in his firm.

i would like to extend my thanks for his help in the project topic of MARKETING IN SMALL SCALE INDUSTRIES, and provide me with all the essential information need for the project.

I would even like to thank my faculty guide Prof. Hitesh Kesarwani for his guidance throughout my internship

Program.i would even like to thank all those people who provided me with their help and took out time to help me during the internship.

Thank you

Lavanya

BBA 5TH SEM

A7006409062.

CONTENT

TOPIC ………………………………………………………….PAGE NO.

1. SYNOPSIS …………………………………………………………..4 – 52. OBJECTIVES……………………………………………………………6

3. CHAPTER 14. INTRODUCTION……………………………………………………….8- 225. MARKET INTELLIGENCE…………………………………………….23 – 266. MARKETING AND SMALL SCALE IND……………………………..27-29

7. CHAPTER 28. COMPANY PROFILE……………………………………………………30- 409. INTERNSHIP……………………………………………………………..41- 47

10.CHAPTER 311.CONCLUSION…………………………………………………………...49-7012.ANALYSIS…………………………………………………………….....71-7313.ANNEXURE14.CURRICULUM VITAE…………………………………………………..74-7615.BIBLIOGRAPHY…………………………………………………………77

SYNOPSIS

TOPIC- Marketing in small scale industries.

ABOUT THE ORGANIZATION- the opportunity to work as an intern was provided by AVADH INDUSTRIES , LUCKNOW, UTTAR PRADESH. It firm is headed by Mr. Suraj Kumar, the M.D of the firm.

It is centrally located inLucknow in one of the most busy locations that is RAMA DHEEN SINGH COMPLEX

AT I.T CIRCLE.

The firm basically deals with the manufacturing and production of furniture to the government offices throughout Uttar Pradesh. It has a long chain of product line, which our manufactured according to the format and guidelines provided by the government of Uttar Pradesh. Being a small scale industry and an industry under the public sector the firm has to follow all the rules and regulations laid down by the government. There are hardly any changes that can be made in the changes regarding the manufacturing and production of the furniture.

OBJECTIVE-

The objectives are as follows

Learn about the working of the small scale industries in India

Marketing strategies adopted by them

Help from the government

Incentives from the government

Problems faced by the small scale industries

Future expectations of the firms

METHODOLOGY-

Internet based information

Information provided by the firm

News paper editorials

Tender journals.

OBJECTIVE OF THE REPORT

Objective of the report is to know about the working conditions of the small scale industries and the marketing strategies employed by them. Under this report we would discuss about the ways and process which are present in the working of a small scale industry. The objectives of the report can be as follows

To know about the working of a small scale industries under the government.

Incentives provided by the government.

Rules and regulation.

Marketing of the products

The set format of the products being manufactured.

Problems the firm is facing.

The limited sources of marketing.

Introduction of new strategies.

Future expectations of a small scale industries regarding marketing.

Chapter 1: introduction

Theoretical presentation of the topic

MARKETING IN SMALL SCALE INDUSTREIS.

INTRODUCTION:

ALL ABOUT SMALL SCALE INDUSTRIES

Indian Industries Association (An apex Body of MSME's)

Inception & Evolution 

Indian Industries Association, popularly known as IIA is an apex representative body of Micro, Small & Medium Industries with a strong membership base of more than 7000 Micro, Small and Medium Scale Units.

IIA's formidable presence is the direct result of its extensive network of more than 35 chapters spread in most of the important districts of the region.

In 1985, a group of committed young professionals joined forces and conceived the idea of an organization that can act as a catalyst for the promotion and growth for Micro, Small & Medium Scale Industries. It was thus that, NAYE (National Alliance of Young Entrepreneurs) came into being. In July 1992, however, NAYE was renamed IIA with the roles and objectives of the organization further widened to suit the needs of changing socio-economic environment.

Objectives

IIA operates on the board based objective of fostering co-operation and support for the promotion of Micro, Small & Medium Scale Industries. For more than two decades now IIA has worked consistently in creating an environment conducive to industrial growth in the region, disseminating valuable information on legal & technical aspects, latest development in industry & market, about latest Government policies, procedure and laws etc. apart from solving the teething problems of the Industry.

Representation

IIA is an active and permanent member of more than 36 consultative committees/boards/expert groups formed by Govt. of India and the State Government. The important few are: National Board for Micro, Small & Medium Enterprises (NBMSME) , RBI Standing Advisory Committee on flow of credit to SSI, Regional Advisory Committee on CBEC & CBDT, Member SLIIC, All industry related committee/bodies of Govt. of Uttar Pradesh, Export Promotion, Minimum Wages Advisory Board, UPSIDC Board of Directors, Committee for Selection of SSI  for National Award and Udyog Bandhu at all levels etc.

Through these committees/boards/expert groups, IIA Represents industry before the Government for effective policy formulation and modification. Liaisons at the Government and department levels to help the member units in overcoming their troubles. In association with the Govt. or otherwise IIA organizes Conventions, Trade Fairs, Seminars and Conferences to educate and inform entrepreneurs and thus facilitate industrial growth. Acts as resource group for the entrepreneurs providing them with the consultancy in assortment of areas including technological, legal and policy related matters.

Organizational Structure

IIA has a two tier system operating at the State level and District level. 21 elected members elect the President, who in turn nominates his own team constituting Sr. Vice President, Vice Presidents, General Secretary, Honorary Secretaries & Treasurer at State levels. At District levels a Chapter Chairman appointed by the President operates through his team of office bearers. Keeping in view the increasing size of IIA a Divisional Chairman is also appointed by the President who is responsible for co-coordinating the activities of number of districts. The Central Office based at Lucknow is headed by a full time Executive Director. As a result of this organizational set up, IIA has developed a strong bond among members through belonging to a strong peer group resulting in a sense of security and self confidence. Unique to IIA, a forum for monthly interaction in the district and at the Central Office exists, which enables the members to exchange and gather valuable informations regularly. 

                                             

Activities & Support to Members

Identifying new business opportunities specially relevant in fast changing liberalized economy, Technology and quality up-gradation search, interface with foreign delegations for knowhow, exports and imports, organizing state level convention, trade fair and buyer-seller meets, Enhancing entrepreneurial and managerial skills are regular activities at IIA. 

Indian Industries Association (IIA) is actively involved in Public-Private partnership initiative of the Govt. As a result a MSME Knowledge Bank (MKB) has been set up recently by IIA in collaboration with SIDBI at IIA Central Office to meet all kinds of information needs of MSMEs. Apart from a joint venture with SIDBI, IIA have signed an MOU with NSIC for popularizing their schemes among MSME's. IIA has designed and developing a web based monitoring software for Single Table System of Govt. of U.P. A proposal for improving the system of EDP's in U.P has also been submitted to the Govt. of U.P wherein IIA has proposed to play an important role in implementation and monitoring. In association with Ministry of Food Processing Govt. of India and Department of Food Processing Govt. of U.P, IIA is organizing a National level event "INDIA FOOD EXPO" since 2004 every year. A MOU with Department of Food Processing Govt.of UP has also been signed for the promotion of Agro & Food Processing Industries in U.P. IIA is an active partner for the UNCTAD project on "Strategies and Preparedness for Trade and Globalization" along with FISME & FICCI.

To discuss, analyze, review and recommend various issues and problems of different industrial sectors/areas, IIA have constituted working groups in areas such as IT., Food Processing, Import-Export, Labor, Energy, Taxation, Environment and W.T.O etc. Since inception of IIA, these working groups have contributed a lot for the promotion and development of the industries. 

 IIA have launched a website: www.iiaonline.in wherein latest information and lot of facilities for the members are available such as buy-sell desk, IIA members online directory, latest tenders, notifications/circulars, more than 800 project profiles, exporters directory, placement services, special offers to IIA members, latest news updates, important links of all websites related to industrial development and many more . 24 page IIA News letter is also published every month which is very popular among MSME's. This News letter reaches every member of IIA, which is full of useful information related to taxation, energy/power, HR and many more. 

IIA acts as a close friend and protector of MSME entrepreneurs by taking up any kind of their industry related problems/issues for solution at various levels. This personal attention/help is the need of MSME entrepreneur because such a help saves lot of time, money and efforts of the managers which he can deploy for other business activities. Till date IIA have organized about 20 State level/National level events for promotion of Small and Medium Industries. Unique facility of Buy/Sell is available on IIA website. Through this facility MSME entrepreneur reaches to the Global Market easily.

IIA plan, design and organize industry related studies, surveys and developmental programmers’ regularly. This activity helps both the Government as well as the Entrepreneur.

IIA help its members in particular and MSME in general for promoting their business through Trade Fairs, Exhibitions, Buyer Seller Meets, Visits within & Outside India, Foreign tie-ups etc.

Till date IIA have organized about 20 state level/ National level events for promotion of Micro Small and Medium Industries. Unique facility of buy/sell is available on IIA website. Through this facility MSME entrepreneurs reaches to the Global Market easily.

IIA plan to design and organize industry related studies, surveys and development program regularly. This activity helps both the Government as well as the Entrepreneurs. Particulars of Organization, Functions and Duties

2.1 Taking into account the high potential for growth in the micro, small and medium enterprises (MSMEs) in terms of output, employment and exports, the role of the Ministry of Small Scale Industries is to strengthen MSMEs, to enable them to remain competitive in market-led economy and generate additionalEmployment opportunities.

2.2 The mission of the Ministry is to support MSMEs by way of advocacy with the various organizations of the Government, by providing services to support the and development of these enterprises and by management of program through Government and Non-Government organizations, for their benefit. The objective is to promote, aid and foster the growth of MSMEs by providing them institutional support in the areas of marketing, export, technology up gradation, training and common facilities services. The mission aims at providing prompt services/training needs to citizens through our field agencies like Small Industry Development Organization and the National Small Industries Corporation, so that the growth of the MSMEs is enhanced, qualityof production is improved and more employment opportunities are generated.

2.3 The Government created Ministry of Small Scale Industries and Agro and Rural Industries (SSI & ARI) in October, 1999 as the nodal Ministry for formulation of policy and co-ordination of Central assistance relating to promotion and development of the small scale industries in India. The Ministry of Small Scale Industries and Agro and Rural Industries (SSI & ARI) was bifurcated into two separate Ministries, namely, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries in September, 2001.

2.4 The Ministry of SSI designs policies, program, projects and schemes in consultation with its organizations and various stakeholders and monitors their implementation with a view to assisting the promotion and growth of MSMEs. The Ministry also performs the function of policy advocacy on behalf of these enterprises with other Ministries/Departments of the Central Government and the State and Union Territories.

2.5 For achieving these objectives, the specific schemes / program undertaken by the organizations of this Ministry seek to facilitate / provide one or more of the following for the MSMEs:

Adequate credit from financial institutions/banks;

Funds for technology up gradation and modernization;

Adequate infrastructural facilities;

Modern testing facilities and quality certification laboratories;

Modern management practices and skill up gradation through advanced training facilities;

Marketing assistance; and

Level playing field at par with the large industries sector.

2.6 The implementation of policies and various program/projects/schemes for providing infrastructure and support services to small enterprises is under taken through its attached office, namely the Small Industry Development Organization (SIDO) and the National Small Industries Corporation (NSIC) Ltd., a public sectorUndertaking

SMALL INDUSTRY DEVELOPMENT ORGANISATION (SIDO)

The Small Industry Development Organization (SIDO) also known as the Office of the Development Commissioner (SSI) is an apex body for assisting the Ministry in formulating, coordinating, implementing andMonitoring policies and program for the promotion and development of small scale industries in the country and is headed by the Development Commissioner (SSI). SIDO provides a comprehensive rangeof common facilities, technology support services, marketing assistance, etc through its network of 30 Small Industries Service Institutes (SSIs), 28 Branch SISIs, & Field Testing Stations (FTS), 4 Regional TestingCenters, 2 Small Entrepreneur Promotion and Training Institutes (SEPTI) and 1 Hand Tool Design Development and Training Center. The SIDO also has a network of Tool Rooms, Processing-cum-Product DevelopmentCenters (PPDCs) and technology and training support institutes which are run as autonomous bodies registered as Societies under the Societies Registration Act, 1860.

Small Industries Development Bank of India is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises in India. Set up on April 2, 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India. Current shareholding is widely spread among various state-owned banks, insurance companies and financial institutions. Beginning as a refinancing agency to banks and state level financial institutions for their credit to small industries, it has expanded its activities, including direct credit to the SME through 100 branches in all major industrial clusters in India. Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and on lending. Recently it has opened seven branches christened as Micro Finance branches, aimed especially at dispensing loans up to Rs. 5.00 lakh.

It is an apex body and nodal agency for formulating, coordination and monitoring the policies and program for promotion and development of small scale industries.

SIDBI has also floated several other entities for related activities. Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantees to banks for collateral-free loans extended to SME. SIDBI Venture Capital Ltd. is a venture capital company focused at SME. SME Rating Agency of India Ltd. (SMERA - provides composite ratings to SME.

What are the objectives and functions of Small Industries Development Bank of India

In the setting up of SIDBI, the main purpose of the government was to ensure larger flow of assistance to the small-scale units. To meet this objective, the immediate thrust of the SIDBI was on the following measures:

(i) initiating steps for technological upgradation and modernisation of existing units;

(ii) expanding the channels for marketing the products of the small scale sector; and

(iii) promotion of employment-oriented industries, especially in semi- urban areas to create more employ-ment opportunities and thereby checking migration of population to urban areas.

What are the functions of SIDBI?

SIDBI provides assistance to the small-scale industries sector in the country through the existing banking and other financial institutions, such as, State Financial Corporations, State Industrial Development Corporations, commercial banks, cooperative banks and RRBs. etc. The major functions of SIDBI are given below:

(i) It refinances loans and advances provided by the existing lending institutions to the small-scale units.

(ii) It discounts and rediscounts bills arising from sale of machinery to and manufactured by small-scale industrial units.

(iii) It extends seed capital/soft loan assistance under National Equity Fund, Mahila Udyam Nidhi and Mahila Vikas Nidhi and seed capital schemes.

(iv) It grants direct assistance and refinance loans extended by primary lending institutions for financing exports of products manufactured by small-scale units.

(v) It provides services like factoring, leasing, etc. to small units.

(vi) It extends financial support to State Small Industries Corporations for providing scarce raw materials to and marketing the products of the small-scale units.

(vii) It provides financial support to National Small Industries Corporation for providing; leasing, hire purchase and marketing help to the small-scale units.

Functions meant to help small scale industries

1. Refinances loans given to small scale sector by primary lending institutions.

2. Discounts and rediscounts bills relating to the transaction of machinery of the small scale sector.

3. Extends seed capital through specified agencies.

4. Assistance for export of products of small-scale sector.

5. Provides services like leasing and factoring.

6. Give financial support to purchase raw material and the sales of finished products.

Small-scale Industries are considered a harbinger of economic progress and have

stemmed and grown out of India's own skills, resources, enterprise and culture. This

sector is believed to be an elixir for all the ills of a developing economy like India. A

growing economy always needs the presence of small enterprises.

In a labor abundant and capital scarce country like India, small-scale industries have

come to occupy a significant position in the planned industrialization of the economy.

Ever since the announcement of the Industrial Policy Resolution of 1948, small-scale

industries have occupied a prominent place in the overall strategy of industrial

development in India. Successive Five Year Plans have allocated increasing resources for

the development of small industries. In view of the abundance of labor, scarcity of

capital, and rural nature of the economy, the preference for small industries is natural.

In the wake of globalization wave sweeping across the countries, new opportunities and

challenges have emerged for the small industries. Appropriate policies are needed to meet

these challenges to sustain the growth of small industries.

Key Topics Covered Place of Small-scale Industries in India's Industrial Policy - Industrial Policy

Resolutions of 1948 and 1956; Small-scale Industries and Economic Planning; Industries (Development and Regulation) Act, 1951; D.G. Karve Committee; District Industries Centers (DICs); Economic Reforms and Small-scale Industries; Abid Hussain Committee; Significance of Small Scale Industries; Policy Initiatives for Small Scale Industries; Micro, Small and Medium Enterprises Development (MSMED) Act, 2006; Globalization and Small-scale Industries.

Various Studies on Small-scale Industries in India. Credit Flow to Small-scale Industries - Credit Needs of Small Industries;

Working Group on Credit to Small Industries, 2004; Guidelines on Credit Flow to Small Sector, 2005; Policy Package for Credit to Small Enterprises; Working Group on Credit Delivery to Small Enterprises, 2008.

Problems of Small-scale Industries and Policy Initiatives - Problems Faced by

Small Scale Industries; Policy Measures to Help Small Industries; Recent Policy Initiatives for Small Industries.

Profiles of Select Small-scale Industries in India - Power looms; Handlooms;

Silk and Sericulture; Unorganized Wool Sector; Khadi and Village Industries (KVI); Coir Industry; Handicrafts; Food Processing Industries.

Appendix: Small-scale Industries in Tamil Nadu: A Case Study

Confederation of Indian Industry

The Confederation of Indian Industry (CII) is a non-government, not-for-profit, industry-led and industry-managed organization, seeking to play a proactive role in India’s development process. The organization works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes. The confederation is headquartered in New Delhi.

Function

CII aims to usher change by working closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialized services and global linkages. It also provides a platform for sectoral consensus building and networking. Major emphasis is laid on projecting a positive image of business, assisting industry identify and execute corporate citizenship programs. CII undertakes research, interacts with key government officials and disseminates information through publications, seminars and events.

With 64 offices in India, 9 overseas in Australia, Austria, China, France, Germany, Japan, Singapore, UK, USA and institutional partnerships with 223 counterpart organizations in 100 countries, CII aims to serve as a reference point for Indian industry and the international business community.

CII-Yi

Young Indians (Yi) is an integral part of the Confederation of Indian Industry (CII), India’s premier business association, formed in the year 2002, with an objective of creating a platform for young Indians to realize the dream of a developed nation. Yi has over 1200 direct members in 25 city chapters. Yi engages another 12,000 members through its Farmer Nets, Student Nets and Corporate chapters. The Yi membership includes young progressive Indians between the age group of 25 & 40 years. The members include entrepreneurs, professionals and progressive achievers from different walks of life. ‘To become the voice of young Indians globally’ being the vision of Yi, it provides a platform for young Indians to participate in and contribute by becoming an integral part of the Indian growth story. Yi works effectively for promoting leadership skills for the development of its members through the learning programs; the development and engagement of students in schools and colleges through its 59 Student Net platforms which engage more than 4000 students from various educational institutions across India; and two Farmers Net platform that has enrolled 8500 young & progressive farmers from all across the country, providing them with real time agricultural inputs and know-how. Yi has successfully conducted campaigns and developed successful projects across the focus areas of primary education, environment, primary healthcare and employability, contributing positively to its surrounding eco-system and the nation. Through its initiatives like Akshara, Yi has impacted 15000 students across 50 centers, skilled & placed 1300 youth under the aegis of its Yi labs employability program. Under the healthcare initiative, over 170000 children have been deformed in addition to the many health awareness programs that have been conducted, across the community in different cities.

Yi organizes an annual national summit with themes relevant to India and its youth. The national summits include sessions and interactions with some of the finest and eminent personalities from various fields, across India and the world. 6 editions of the National Summit have been organized

Centre of Excellence

One of the USPs of CII has been the uncanny ability of its membership to perceive global trends, build technical capabilities and then spread the trend among the industry members. The canters of Excellence were set up specifically for this purpose. The first of the centre to be established was the Institute of Quality in Bangalore. The CII - Sohrabji Godrej Green Business Centre was established in

SECRETARY(MSME) SAYS MARKETING INTELLIGENCE PORTAL – A SYMBOL OF TRANSFORMATION

08 Jul 2011, 09:12am

Secretary(MSME) Says Marketing Intelligence Portal – A Symbol of Transformation

New Delhi July 8, 2011

Shri Uday Kumar Varma, Secretary, MSME inaugurated NSIC Web Portal for disseminating Marketing Intelligence to MSME sector in the country here today.

Congratulating NSIC for developing first-of-its-kind portal on Marketing Intelligence for Micro, Small & Medium Enterprises (MSMEs) the Secretary said “I am glad to be here, as Portal is a symbol of the transformation being brought about in the domain of MSME”. He further added that in the present era of globalization, the Micro, Small and Medium Enterprises have realized the importance of Market Intelligence system for their growth. MSMEs are in need of information relevant to a company’s markets, which can be gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics. Market intelligence is even necessary when entering a foreign market.

Shri Varma further added that today competition has become paramount and is considered a potential threat to survival of any enterprise and gathering intelligence on competitors and the business environment has become an essential part of business planning and the process of obtaining Marketing Information is very specialized and resource hungry. Non availability of Experts/Resource persons, high cost of primary data collection and analyzing and even higher cost of database development, maintenance and subscription are also impediments for MSMEs to gather Market Intelligence. The Secretary visited the Marketing Intelligence Cell and gave value

additional suggestions.

Welcoming the Secretary (MSME), Dr. H.P. Kumar, CMD, National Small Industries Corporation (NSIC) informed that Marketing Intelligence information dissemination, on account of its outbound nature cannot sustain and fructify without ICT intervention. NSIC, in its Endeavour to remove the geographical barriers in disseminating information has developed this marketing Intelligence portal exclusively for the use of MSMEs with a domain www.msmeintelligence.com Besides mentoring facility for MSMEs is available inside the web portal.

Online forms interfaced with inexpensive ICT enabled features like Skype calling, toll free telephone and expert chatting are available for MSMEs to connect to Marketing Intelligence experts. MSMEs are therefore invited to access this Intelligence cell through the Web portal and avail all information seamlessly sitting on their Desk/Office using Internet.

The proposed web portal will facilitate connectivity to Indian MSMEs and also access to global enterprises in accessing information about the products and technologies available from MSME sector in India. The portal has advanced features with access to valuable databases of information such as:

Marketing intelligence reports. Interactive information on government bulk buyers. Government rate contracts. Information on Indian exports. Online details of international buyers. National and international trade leads. Sector watch alerts. Events and exhibitions and MSME news. National and global tender notices. Technology suppliers and products of MSMEs interactive retrieving system.

The Web portal has a continuous stream of updated information coming from various trusted sources( international as well as domestic), which makes it different from other portals available on Internet. In addition, it stands out as one-stop-shop for MSMEs in the context of accessing Marketing Information. Huge repository of reliable Databases, access to latest and relevant tender notices & alerts, availability of domestic and international Trade leads, dynamic and interactive B2B features and valuable inputs on experts marketing are going to make this portal a great success.

Hyderabad to bring in focus on "Green Business" - Green Buildings, Energy Efficiency, Environment & incubation. The CII ITC Centre for Excellence for Sustainable development in Delhi focuses on promoting Triple bottom line concept. Institute for Logistics, Chennai, Naroji Godrej Centre of Excellence on corporate governance Mumbai, L M Thapar Centre for Competitiveness, Chandigarh for Cluster initiatives, Water Institute Jaipur are the other Canters of Excellence. The technical expertise available with the centre’s, coupled with dedicated industry membership makes the institution an ideal medium to reach out to the industry

MARKETING AND SMALL SCALE INDUSTRIES

Marketing and small scale industries have never gone hand in hand. It has always been really difficult for it to work in the same environment. Though has its own difficulties and shortcomings it can never be denied that they cannot work together.

Here it is important for us to know, that, though using marketing strategies are difficult to put into action, at the same time it is equally important.

As the word marketing itself define to promote a commodity, the job of the small scale industries also increases, as now they have to work towards the marketing schemes of the industries.

One of the main concerns under this heading is that the firms have to work under the supervision of the government. And all the standards of marketing sre also set by the government itself.

Though the firms are able to ork on their own whims, they have to keep up to the standards of the government

Marketig under this sector of the industries is done through the traditional ways of marketing. Some of the ways that are followed by the firms are as follows

Marketing through news portals Marketing through the internet. Providing incentives and promotion by easy tax rates. Advertisements by the government. Introduction of a few but effective products. Marketing through connections with the state governments.

SMALL SCALE INDUSTRIES HAVE VERY LIMITED MEANS OF MARKETING THEIR PRODUCTS. SO WHEN THEY DO GET A CHANCE TO DO THAT IT’S MAINLY BY THE USE AND INFORMATIONS PROVIDED BY THE TENDERS BY THE GOVERNMENT OR THE RATE CONTRACTS THAT ARE PASSED BY THE GOVERNMENT.

TENDERS AND RATE CONTRACTS RESTRICTS THE FIRMS TO WORK ALL BY THEMSELVES. UNDER THIS METHOD, THE MOST CREDIBLE INDUSTRIES ARE ABLE TO GET THROUGH WITH THE TENDERS NOTICES LAUNCHED BY THE GOVERNMENT.

THE FIRMS ARE ABLE TO TELL THEIR CUSTOMERS ABOUT THEIR PRODUCTS ONLY BY THE MEANS OF RATE CONTRACTS AND EVEN BY THEIR OWN CONNECTIONS , AS THE MAJOR BUYERS UNDER THIS SECTOR IS THE GOVERNMENT OFFICES OF THE STATE ITSELF.

About Us

IndiaMART.com is India's largest online B2B marketplace for Small & Medium

Size Businesses, connecting global buyers with suppliers. The company offers a

platform & tools to over 1 million suppliers to generate business leads from over 5

million buyers, who use the platform to find reliable & competitive suppliers. The

company has over 4000 employees located across 75 offices in the country. Its

existing investors include Intel Capital and Bennett, Coleman & Co. Ltd.

IndiaMART.com offers products that enable small & medium size businesses

generate business leads (online catalogs/store-fronts), establish their credibility

(third party verified trust profile) and use business information (finance, news,

trade shows, tenders) for their business promotion.

IndiaMART.com has won numerous awards over the years, which include coveted

Red Herring Award, Emerging India Award, among others. The company alsbeen

widely covered by media for its pioneering role in promoting SME business in the

country.

CHAPTER 2

ORGANIZATIONAL PROFILE OF THE COMPANY

AVADH INDUSTRIES.

SUMMER INTERNSHIP AT AVADH INDUSTRIES

BACKGROUND

Avadh industries is a small scale industry centrally located in Lucknow, Uttar Pradesh. The head office of the firm is located in one of the most busy locations of Lucknow city .

The firm is headed by Mr. Suraj Kumar, who hails from Lucknow itself and is well aware of the working conditions throughout Uttar Pradesh. The industry was established nearly about 20 years ago. Have been seeing gradual profits ever since. The firm basically works on the standards and lay outs set by the government of Uttar Pradesh. It works in accordance with the IIA.

The original business catered by the firm is the manufacturing and supply of wooden and steel furniture. The main buyer of the firm is the government offices throughout uttar Pradesh. The production basically deals with the orders of the offices, and the orders that are passed through the means of the tenders that are passed by the government.

PROMOTER

The promoter if the firm would mainly be the head of the firm that is the managing director of the firm.

INDIAN INDUSTRIES ASSOCIATION

INDIAN INDUSTRIES ASSOCIATION, LUCKNOW.

UTTAR PRADESH GOVERNMENT.

PRODUCT LINE

The product line of the firm is basically a set of fixed commodities that are allowed to be manufactured by the government of Uttar Pradesh, which are as follows

WOODEN FURNITURE

COMPUTER FURNITURE

STEEL ALMIRAH

STEEL BOOK SHELVES

FILING CABINET

STEEL RACKS

KIT BOXES

STEEL FURNITURE

ROOM AIR COOLERS

MODULED FURNITURE

GENERAL TERMS AND CONDITIONS LAID BY THE FIRM

VAT

VAT will be charged extra at the rate of 13.5 %

GAURANTEE

All goods are guaranteed for 12/ 18 months from the date of supply against faulty material and defective workmanship subject to proper handling and care during the guarantee period which may be reported for its rectification within 15 days of its receipt , failing which it will be their own responsibility.

DELIVERY SCHEDULE

2 to 4 weeks after the receipt of confirmed order from the indenting officers subject to any force majeure clause beyond our control.

PAYMENT SYSTEM

90% or full payment against RR / GR / CR proof of dispatch documents or against invoice along with orders and balance within 30 days after receipts, check and verification of materials.

IMPORTANT NOTES

1. For delay in payment penal interest at the rate of 24% will be levied.2. The supply of the above mentioned items offered are covered partially in the

previous or the current rate contracts notification and of similar notifications.3. All disputes subject to LUCKNOW JURISDICTION only.4. F.O.R rates any where in Uttar Pradesh.5. Firm is agree to supply on old approved rates up to the new notification

GOVERNMENT POLICIES

In 1995, the Government enunciated its Industrial Policy – ‘Target 2000’which set the tone for adopting a new approach to industrial development inthe liberalized economy. One of the objectives of this New Industrial Policyhas been to promote the growth of small scale and cottage industries to helpthe small entrepreneurs.

In order to develop the small scale sector, Government feels that it isimperative to spell out a specific policy framework which would set the toneand direction of the Governmental effort to help this sector achieve its fullpotential. In order to make the policy more realistic, Government have gonethrough an elaborate process of consultations with SSI Associations, officialsof related Government Departments and individual entrepreneurs.

Objectives of the S.S.I. PolicyThe Policy for Small Enterprises aims to create a congenial atmosphereconducive to the healthy growth of the Small Scale Sector in the State. Thebroad policy objectives are enumerated below:

§ To achieve an annual growth rate of 15%.

§ To assist the small scale industries in the State to become competitive,domestically as well as internationally.

§ To increase employment generation - particularly by promoting thelabour intensive segments.

§ To improve the export performance of the SSI sector by providingadequate support services.

§ To create a more congenial and hassle-free environment for thefunctioning of the SSI sector

§ To help the SSI sector acquire new technologies and skills so as tocompete effectively in the market place.

§ To promote appropriate linkages between the large and small scalesectors in the interest of harmonious industrial development.

§ To strive to promote an appropriate institutional mechanism to revivesick industries

§ To encourage SSI units to grow vertically and graduate, in the courseof time, from small scale to medium and large scale units.

Strategy for achieving the policy objectives

§ Work towards phased de-reservation of items reserved for exclusivemanufacture in Small Scale Sector.

§ Recommend revision of investment limits for Small Scale, Ancillary andTiny Industries.

§ Rationalize fiscal concessions.

§ Strive to put in place appropriate arrangement for timely and adequateflow of credit.

§ Assist the Small Scale Sector in their marketing efforts by providingsupport services.

§ Provide adequate, good quality infrastructure support at a reasonablecost for more efficient functioning of the SSI sector.

§ Provide technical support for modernization and access to R&Dfacilities.

§ Give a thrust to Human Resource Development by setting up newtechnical training institutions and by associating small scaleentrepreneurs in the Advisory Boards of these institutions.

§ Simplify Rules, Regulations and Procedures to remove the fetters onthe smooth functioning of the sector.

§ Bring about revision in Labour Laws.

§ Improve the quality of services to entrepreneurs belonging to SC / STcategories and women to encourage them to participate effectively inthe developmental process.

§ Put in place appropriate organizational mechanism for greaterinteraction between the Government agencies and the SSIAssociations.

§ Diagnose incipient sickness and initiate timely measures for the revivalof sick industries.

§ Introduce a scientific data collection system to make the planning process more realistic

ORGANIZATIONAL STRUCTURE

An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims] It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment

Many organizations have hierarchical structures, but not all.

Organizations are a variant of clustered entities

An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.

Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual.

Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions

ORGANIZATIONAL STRUCTURE AT AVADH INDUSTRIES.

The organizational structure at Avadh industries is not a very hectic one. Being small scale industries the main work starts when the tender notices are introduced by the government. Which mainly starts with the financial year .once the tender is achieved by the firm. Then only the original work starts . all the purchase of the raw material is done around that time. As the work is done on a contract basis the firm has to work within a given span of time, if the work is not completed within that span, the tenders may cancel and can be given away to some other firm of the same business.

Being a small scale industry, the supervision becomes quite simple as the labor employed is skilled, and specialized on their work, so the work allocation is simple and coordinated. As the head office is only one, so the controlling also becomes simple.

If the work is completed within the given time limit the contracts can be considered to be fulfilled.

COMPETITORS

The main competitors of the firm are the other firms from the same field. They are the firms which deal in the same type of business and productions. The main competitions is about the credibility of the commodities produced and the cordial relations with the customers. It even matters who gets the tenders to fulfil the contracts, as the government tenders are of a very high value, and help the small scale industries to develop.

The competitions becomes difficult as firms from all around the state enter the business with their rate contracts. To eliminate competitions from the business, the only way present is credible business and products with less complaints, services. Maintenances, and many other features like these which will help the firm to earn a good name and hold a position in the home market.

WORKING CONDITIONS AT AVADH INDUSTRIES

The working conditions of the firm has been a satisfying one. the ware house workers do not have to face many problems. They are well settled with their working conditions. Even the office environment is a friendly one, which does not let the work load to become a hectic one. The incentives that have been provided by the firm managers to the employees of the firm are as follows

Favorable working conditions.

Easy and flexible working hours.

Low pressure on the workers for the completion of the task.

Leave granted whenever required by the workers in case of emergency.

Payments of the workers done on time.

Festive bonus provided.

Holidays provided.

Leisure hours provided to the workers.

Lunch hours satisfying for he workers.

Ease to communicate with the top management.

INTERNSHIP REPORTS

INTERNSHIP REPORT

AVADH INDUSTRIES

I AM WORKING AS A INTERN, FOR THE SUMMER INTERNSHIP PROGRAM, PROVIDED BY AMITY UNIVERSITY LUCKNOW.THE SPECIALISATION TAKEN BY ME , IS IN THE FIELD OF MARKETING ANDSALES.

AVADH INDUSTREIES IS A SMALL SCALE, PUBLIC SECTOR FIRM, HEADED BY Mr. SURAJ KUMAR.THE FIRM , HAS ITS HEAD OFFICE AT I.T CIRCLE , RAMADHEEN SINGH COMPLEX, LUCKNOW, UTTAR PRADESH.THE FIRM DEALS WITH THE SUPPLY OF WOODEN FURNITURE, AND STEEL ALMIRAH TO GOVERNMENT OFFICES ALL OVER UTTAR PRADESH

I JOINED IN THE FIRM ON 10.5.11, MY FIRST WEEK INTERNSHIP ENDED ON 14.5.11. AS A MARKETING INTERN, IN THE FIRST WEEK I WAS GIVEN A BRIEF INTRODUCTION TO THE FIRM AND THE EMPLOYEES WORKING OVER THERE.THEN I WAS GIVEN THE JOB OF GOING THROUGH THE COOMPLETE BOOK LIST OF THE VARIOUS PRODUCTS THAT THE FIRM AVAILS TO THE GOVERNMENT. I WAS THEN GIVEN THE JOB OF GOING THROUGH THE RATE CONTRACTS OF THE FIRM.

MY MAIN ASSINGNMENT TILL NOW, HAS BEEN TO MAKE CORDIAL RELATIONS WITH THE HIGH OFFICIALS OF THE GOVERNMENT, IN DIFFERENT DEPARTMENTS. I WAS GIVEN THE JOB TO TELL THEM ABOUT THE PREVAILING RATES OF THE UPCOMING TENDERS, AND TAKING UP ORDERS FOR FUTURE SUPPLIES.

I GAINED KNOWLEDGE ABOUT HOW A SMALL SCALE INDUSTRY WORKS, HOW ARE TENDERS ACQUIRED, WHAT ARE THE MAIN REQUIREMENTS FOR THE FIRM, COMMUNICATION WITH OTHERS, AND CONVINCE THEM TO PLACE THEIR ORDERS.IT EVEN HELPED ME GAIN KNOWLEDGE ABT THE DIFFERENT DEPARTMENTS OF THE GOVERNMENT AND THEIR WORKING PATTERN.

OVERALL IT WAS A LEARNING EXPERIENCE, WORKING UNDER Mr. SURAJ KUMAR. AND LOOKING FORWARD TO CONTINUE WITH MY INTERNSHIP AND LEARN MORE.

THANK YOU.

FROM

LAVANYA

BBA 4TH SEM

A 7006409062

SUMMER INTERNSHIP REPORT

AVADH INDUSTIRES

THE THIRD WEEK OF INTERNSHIP COMMENCED FROM 23RD OF THIS MONTH.DURING THE WEEK WE WERE TAUGHT ABOUT HOW DOES THE RATE CONTRACT WORK WHILE THE ORDER IS BEING PLACED. WE WERE TOLD ABOUT THE VARIOUS OFFICES WHERE THE CONTRACTS WERE BEING CIRCULATED.

WE WERE THEN TAUGHT ABOUT THE FUTURE DEMANDS OF THE ORGANIZATION WITH REGARDS TO THE RATE CONTRACTS THAT ARE SET BY THE GOVERNMENT.

WE WERE EVEN MADE TO GO THROUGH THE VARIOUS NORMS REGARDING THE RATES THAT ARE SET BY THE GOVERNMENT, AND EVEN TOLD ABOUT THE INFLEXIBILITY OF THE RATES .

THE WEEK GAVE US AN IDEA ABOUT THE VARIOUS ACTIVITIES TAKING PLACES WITHIN THE GOVERNMENT, AND ALSO HOW THE SMAAL SCALE INDUSTRIES HAVE TO WORK WITH THE SET NORMS OF THE GOVERNMENT.

THANK YOU.

FROM

SUMMER INTERNSHIP REPORT

AVADH INDUSTRIES

THE FOURTH WEEK OF INTERNSHIP COMMENCED FROM 3OTH OF MAY AND ENDED ON 3RD JUNE . DURING THE WEEK WE WERE TESTED ON OUR COMMUNICATION SKILLS. AS VERBAL COMMUNICATION ACTS AS A GREAT TOOL OF MARKETING UNDER THESE INDUSTRIES.

WE WERE TAUGHT HOW TO COMMUNICATE WITH THE GOVERNMENT OFFICIALS AND CONVINCE THEM TO HIRE OUR SERVICES. IT TURNED OUT TOBE A VERY CHALLENGIN JOB , AS THE OFFICILAS ARE VERY BUSY AND HARDLY HAVE ANY TIME TO LISTEN TO ANYTHING WHICH IS OF NOT THEIR USE.

WE WERE TAUGHT HOW TO BE SPECIFIC AND TO THE POINT AND BE FORMAL AND CORDIAL WITH OUR SPEECH AND EXPRESSION.

IT WAS A WEEK OF GREAT LEARNING OPPORTUNITUIES FOR US. WE LEARNT HOW TO COMMUNICATE WITH PEOPLE AND BRUSH UP OUR COMMUNICATIONSKILLS THROUGH THE PHONIC SKILLS.

THANK YOU.

FROM

LAVANYA

INTERNSHIP REPORT

AVADH INDUSTRIES

The fifth week of internship started from 6th of this month and ended on 10of this month. During the week we continued to do some trivial jobs related to the tenders and rate contracts of the products.

As a new tender was being circulated, we were told to make the respective changes in the rate contracts. We were also told to circulate this informationamongst the various offices , which use our services, by sending them a formal mail, and letters, telling them about the changes made in the contracts.

We were also given a chance to have a look at the RC books of the company.And were told about the working and need of the books for the company andits customers.

It was a learning experience for us. As we came to know more about the functioning of the industries under the government.

The sixth week of internship begins from 13th of this month.

Thank you.

FROM

LAVANYA

BBA

A7006409062.

SUMMER INTERNSHIP REPORT

AVADH INDUSTRIES

THE SIXTH AND THE LAST WEEK OF THE SIP COMMENCED FROM THE 13THIS MONTH AND ENDED ON THE 17TH. AS WE CAME TO THE END OF THE INTERNSHIP, THE ERRANDS GIVEN TO US WERE NOT VERY DIFFICULT AND TIRING.

WE WERE LUCKY ENOUGH TO BE A PART OF THE MEETING OF THE IIA, HELD IN THE CITY ITSELF. WE CAME TO KNOW ABOUT THE OTHER INDUSTRIES THAT WERE WORKING UNDER THE GOVERNMENT. WE WERE INFORMED ABOUT THE AGENDA OF THE MEETING.WHICH DEALT WITH THE CHANGES IN THE RATES AND THE DIFFERENT CONTRACTS THAT WERE TO BE INTRODUCED BY THE GOVERNMENT.

WE GAINED KNOWLEDGE ABOUT THE POLICIES BEING LAID BY THE GOVERNMENT , TO HELP THE SMALL SCALE INDUSTRIES THROUGHOUT INDIA. WE WERE FURTHER GIVEN THE KNOWLEDGE ABOUT THE CHANGING TREND IH THE BUSINESS PROCESS OF THESE INDUSTRIES.

OVERALL IT WAS A LEARNING EXPERIENCE, WHICH HELPED US TO UNDERSTAND THE WORKING OF THE INDUSTRIES UNDER THE SURVEILLANCE OF THE GOVERNMENT. AND THE MARKETING STRATEGIES WHICH THE INDUSTRIES APPLY FOR THEIR BETTERMENT.

THANK YOU.

FROM

CHAPTER 3

FINDING

COCLUSION

SUGGESTIONS

CONCLUSION

MARKETING IN SMALL SCALE INDUSTRY.

India is Steadily heading towards the 21st century. The dimensions of marketing are sure to change. Consumer awareness is increasing and posing new challenges to the industry. Quality and after-sale service are likely to be given more emphasis by the manufacturers. Service sector is also adopting market-focused approach. The rural market is going through transition and has become the latest find of the marketers. Therefore, a lot of changes are expected to take place both in the domestic as well as world markMarketing plays a vital role in successful business ventures. How well you market you business, along with a few other considerations, will ultimately determine your degree of success or failure. The key element of a successful marketing plan is to know your customers-their likes, dislikes, expectations. By identifying these factors, you can develop a marketing strategy that will allow you to arouse and fulfill their needs.

Identify your customers by their age, sex, income/educational level and residence. At first, target only those customers who are more likely to purchase your product or service. As your customer base expands, you may need to consider modifying the marketing plan to include other customers. ets.

Support for marketing

§ The APSSIDC was set up in 1961 to assist the SSI units in the procurement of controlled items like steel, paraffin wax and pig iron and in the marketing of their products mainly to State Government departments and undertakings under the Marketing Assistance Scheme (MAS) and investing capital in new SSI units

§ With the decontrol of items such as steel and pig iron the Raw Materials Supply Scheme does not have much relevance. SSI Associations can also buy bulk quantities of steel, pig iron etc., from the manufacturers and sell to their members.

§ The Government departments have been frequently complaining against the quality of the products supplied under the Marketing Assistance Scheme and have also objected to the charging of a high commission of 3% by APSSIDC. The overhead costs of theAPSSIDC have been increasing every year and the APSSIDC is forced to increase its service charges for the scheme. Most of the Govt. departments have expressed their preference to buy from the open market. It is also observed that there are defects in theimplementation of the scheme such as the formation of syndicates by a few influential manufacturers who have tried to corner a large portion of the orders. It is also found that some of the registered suppliers are not actual manufacturers but are traders.

§ Lastly, the APSSIDC does not have funds to invest in joint ventures. Most of the joint ventures promoted by APSSIDC earlier have become sick. The APSFC is at present the only nodal agency to promote SSI units through term loans.

§ In the light of the above, Government will restructure the APSSIDC.

§ The Marketing Assistance Scheme will be modified to a rate contract system. The departments will be free to place orders directly on any of the units particularly in the rate contract. The department will pay the amount directly to the supplier unit on delivery of the item, after paying the necessary sales tax to the Commercial Tax Department. The implementation of the scheme will be monitored by the Andhra Pradesh Small Scale Industries’ Development Authority.

§ In order to encourage ancillarization by the large private and public manufacturing units, the State Government will organize Vendor Development Programmes in the major cities of the State. The State Government will also bring large, medium and small companies together on a common platform through the "Linkage" programme to identify areas of common interest and to forge linkages through sub-contracting and ancillarization, so that the advantages enjoyed by the small units in production such as lower overheads, flexibility in production, ability to take small orders etc. can be combined with the marketing strengths of the large units with their adherence to quality standards, capacity to take large orders etc. for mutual benefit of both. The State Government will also persuade the Industry Associations to set up sub-contracting exchanges.

§ The Government will encourage development of SSIs through a cluster approach so as to facilitate implementation of development programmes and make marketing of the products of these clusters easier

§ The State Government will set-up an International Trade Fair-cum- Convention Centre in Hyderabad, which will organize international exhibitions, fairs and conferences to assist the local industries to market their products in the international markets. It will also assist the SSI units in participating in foreign exhibitions and will organize visits of foreign trade and industry delegations to Andhra Pradesh and from Andhra Pradesh to other countries. The State Government will address the Municipal Corporations and Municipalities to set up permanent Exhibition-cum-Convention Centres in district headquarters and large industrial towns. While the local bodies will invest in the construction of such Centres, the management of these Centres will be handed over to Associations of SSI units or to professional agencies. Fees will be collected from the SSI units for utilizing the facilities and this revenue will be used for the maintenance and up-keep of these Centres.

State Capital Investment Subsidy

In order to encourage setting up of industrial units in their States, State Governments

provide State Capital Investment Subsidy to Priority Sector industries. The facilities are

available in Uttar Pradesh, Jammu & Kashmir, Andaman & Nicobar Islands., Sikkim,

Karnataka, Meghalaya, Himachal Pradesh, Gujarat, Punjab, Andhra Pradesh, Kerala,

Maharashtra, Tripura and Manipur.

SalesTax concessions

StateGovernmentsgiveconcessions in sales tax to new units/sick units on the sale of their

finished products at the first point of sale for a period of three to fifteen years. The

facilities are available in Uttar Pradesh, Jammu & Kashmir, Sikkim, Daman & Diu,

Karnataka, Meghalaya, Himachai Pradesh, Gujarat, Nagaland, Punjab, Rajasthan, Andhra

Pradesh, Kerala, Haryana and Tripura.

Exemption from stamp duty and local taxes

State Governments exempt stamp duty in respect of land allofted by the Government to

the new industrial units. Machinery, equipments, raw materials and packing materials of

new units are exempted from payment of octroi duty and other local taxes. The facilities

are available in Jammu & Kashmir, Sikkim, Daman, Karnataka, Meghalaya, Gujarat,

Nagaland, Rajasthan, Haryana, Maharashtra and Manipur.

Rebate in electricity charges and water charges

State Governments provide rebate in electricity charges and water charges to the new and

existing units in their respective States. The facilities are available in Sikkim, Daman,

Karnataka, Himachal Pradesh, Gujarat, Nagaland, Rajasthan, Andhra Pradesh, Kerala and

Maharashtra.

Interest Subsidy

State Governments provide interest subsidy to entrepreneurs on term loans which they get

from State Financial Institutions/Scheduled Banks. The facilities are available in Jammu

& Kashmir, Andaman & Nicobar Islands, Sikkim, Meghalaya, Himachal Pradesh,

Punjab, Rajasthan, Andhra Pradesh and Manipur.

State Transport Subsidy

Some State Governments provide State transport subsidy at notified rates from time to

time to industrial units on transportation of raw materials and finished products. The

facilities are available in Jammu & Kashmir, Andaman & Nicobar Islands, Nagaland and

Manipur.

Subsidy for technical know-how

State Governments provide subsidy on the cost of technical know-how obtained by small

scale industries from reputed and well established research and development

organisations. For obtaining such technical know- how, plrior permission from State

Governments has to be obtained. The facilities are available in Jammu & Kashmir,

Sikkim, Delhi, Kerala and Manipur.

Marketing Support

The State Government Departments, Semi-Government Organizations, Autonomous

Government Organisations, Grant-in-Aid Institutions, Departmental Undertakings, etc.

while making purchases of their requirements of store items, give preference to the

products manufactured by the local SSI units. The facilities are available in Jammu &

Kashmir, Sikkim, Nagaland, Delhi, Kerala, Manipur and Tripura.

PROMOTION OF SMALL SCALE INDUSTRIES- A Panoramic View

The small scale industries play a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy. By less capital intensive and high labour absorption nature, SSI sector has made significant contribution to employment generation and also rural industrialization. Under the changing economic scenario, SSI hasto face number of diverse problems like vast population, large scale un-employment and underemployment and scarcity of capital resourcesand the like. Hence, the government has been providing some special facilities through different policies and programmes to over come the problems and for the growth and development of small scale industries. The efforts of the government have resulted in the phenomenal increase in the number of units in the small scale sector. The government also introduced various schemes and incentives for the promotion of SSIs. Constant support to SSI sector by the Govt. in terms of infrastructuredevelopment, fiscal and monetary policies have helped to emerge as dynamic and vibrant sector of Indian economy. Over the past five decades, Government policies and schemes have been to protect the interests of the SSIs and facilitate its rapid development from time to time.

PROGRAMMES AND SCHEMES FOR PROMOTING SSI SECTOR

The government has introduced various policies and incentives for promotion of SSIs. The significant rise in the number of SSIs reflects that, it has been comparatively easier to establish a small enterprise as it requires a less amount of investment both in fixed and flexible capital assets. The small enterprises are growing at a much faster rate and thereby creating potentials for output, employment and exports. The scope for their growth has been enhanced greatly due to the adoption of more liberalized policy measures.

_ Reservation of Items for SSIs_ Vendor Development Programs_ Subsidies_ Incentives in Operations_ Ancillarisation_ Mini Tool rooms_ Testing Centre_ Sub - Contracting Exchanges_ Assistance Program Credit Guarantee Scheme_ Market Development Assistance Scheme_ Laghu Udyami Credit Card (LUCC) Scheme_ Scheme on Surveys, Studies and Policy Research_ Trade Related Entrepreneurship Assistance & Development for Women (TREAD)_ Sub-Contracting Exchange for Ancillary Development_ Credit linked Capital Subsidy Scheme for Technology Up gradation

_ ISO-9000 Certification Reimbursement Scheme_ Participation in International Fairs_ Purchase and Price Preference Policy_ Small Industry Cluster Development Program_ Integrated Infrastructure Development (IID Scheme_ National Entrepreneurship Development Board (NEDB)_ Composite Term Loan Scheme

INSTITUTIONAL SUPPORT FOR SMALL SCALE UNDUSTRIESConstant support to SSI sector by the Government in terms of infrastructuredevelopment, fiscal and monetary policies have helped this sector to emerge as dynamicand vibrant sector of Indian economy.· Small Industries Development Organisation (SIDO)· National Small Industries Corporation (NSIC)· SSI Board· National Institute of Small Industry Extension Training (NISIET)· National Institute for Entrepreneurship & Small Business Development(NIESBUD)· National Research Development Corporation (NRDC)· Small Industrial Bank of India (SIDBI)

SUPPORT FROM STATE / INDUSTRY ASSOCIATIONSAt the State level, concerned Commissioners/Directors of Industries implement policies for the promotion and development of small scale, cottage, medium and large-scale industries. The Central policies for the SSI sector serve as the guidelines, but each State evolves its own policy and package of incentives. The State departments also oversee activities of thefield offices, viz., District Industries Centres (DICs). In addition, at the State level includes State Financial Corporations, State Small Industrial Development Corporations, and Technical Consultancy Organisations operate to assist thepromotion and development of SSIs. Other regional level agencies include StateInfrastructure Development Corporations, State Cooperative Banks, Regional Rural Banks, State Export Corporations, Agro Industries Corporations and Handloom and Handicrafts Corporations. At the grass root level, NGOs play an important role for the development of tiny and cottage units. Industry Associations provide support to the SSI sector and offer a common platform to raise industry-related issues. Government policies, in recent years, have stressed the increasing role of Industry Associations in the setting up of common facilities and other ventures in the area of technology, marketing and other support services.

POLICIES RECOMMENDED BY RBIThe Standing Advisory Committee under the Chairmanship of the Deputy Governor, RBI hasbeen critically reviewing the flow of institutional credit to the SSI Sector from time to time.Based on this Committee’s decisions, the banks were advised by the RBI to take necessarysteps with regard to:-[1] Fixation of self –set target by the banks for SSI.

[2] Enhancement of composite loan limit for SSI from Rs. 25 lakh to Rs, 50 lakh.

[3] Incorporating credit requirement in the identified clusters in the banks’ AnnualCredit Plans for the year 2003-04.

[4] Adequate publicity by the banks to various schemes/facilities extended to SSIsector like availability of collateral-free/composite loan.

[5] As per the announcement made by the Hon’ble Finance Minister in the UnionBudget 2003-04, India Bank’ Association (IBA) has advised the banks toadopt the interest rate band of 2% above and below their prime lending rates(PLRs) for advances to SSI.

[6] The RBI has informed that majority of public sector banks have issuednecessary instructions regarding adoption of interest rate band of 2% aboveand below their PLR for SSI/tiny units, enhancing composite loan limit for SSIfrom Rs, 25 lakh to Rs.50 lakh, and have fixed self-set targets for growth inadvances to the SSI sector based on the previous year’s achievement.

[7] A meeting was convened on 19.12.2003 with the CMDs of the banks toreview the steps required for improving the flow of credit and bankers’confidence in SSI lending and enhancing awareness onfacilities/incentives/guidelines of the banks were deliberated/emphasized inthe meeting.

[8] Ministry of SSI has requested the banks to circulate the instructions issued bythe RBI to all their branches for compliance, monitor the steps taken by thebranches on these instructions on quarterly basis and post the instructions onbanks’ websites for disseminating information among the prospective entrepreneurs.

[9] Finance Minister announced on 9th January, 2004 creation of a Small andMedium Enterprises (SME) Fund under SIDBI, initially of Rs. 10,000 crore toaddress inter alia the problem of inadequacy of financial resources atcompetitive rates for the Small Scale Sector.

[10] Laghu Udhyami Credit Card (LUCC) Scheme has been liberalized byenhancing the credit limit from Rs, 2 lakh to Rs. 10 lakh, for borrowers whohave a satisfactory track record.

[11] The RBI has constituted a working group on Flow of Credit to SSIsector under the chairmanship of Dr. A.S. Ganguly, Director, and CentralBoard of the RBI as per the announcement made by the Governor, RBI in theMid-Term.

SUGGESTIONSThe following suggestions and requirements are recommended for the growth of SSIs inIndia._ Definition of SSIs based on the Turnover limit along with the fixed assets.

_ Single Taxation Law each for all Direct and Indirect Taxes.

_ Single Comprehensive Labor Policy.

_ Reservation (Procurement) Policy - Price Preference and Purchase Reservationshould be continued for SSIs.

_ Compulsory Registration for SSIs and thereby creating authenticated data andstatistics on SSIs.

_ Benchmarking of SSI Associations and compulsory registration of SSI units with suchAssociations.

_ Quality Improvements - Testing Centres and Laboratories and availability of variousstandards specifications.

_ Infrastructure development like work sheds, etc. at affordable cost including practicalrule.

_ Updated Industrial Training Centres in all districts for industrial needs.

_ Maintaining Stability of Raw material prices.

_ Credit Flow and Awareness of schemes among SSIs.

_ Promotion of Clusters.

_ Sick Unit Rehabilitation Scheme.

What are the problems faced by Small Scale Industries in India?

Small-scale industries in India could not progress satisfactorily due to various problems that they are confronted with while running enterprises. In spite of having huge potentialities, the major problems, small industries face are given below.

1. Problem of skilled manpower:

The success of a small enterprise revolves around the entrepreneur and its employees, provided the employees are skilled and efficient. Because inefficient human factor and unskilled manpower create innumerable problems for the survival of small industries. Non-availability of adequate skilled manpower in the rural sector poses problem to small-scale industries.

2. Inadequate credit assistance:

Adequate and timely supply of credit facilities is an important problem faced by small-scale industries. This is partly due to scarcity of capital and partly due to weak creditworthiness of the small units in the country.

3. Irregular supply of raw material:

Small units face severe problems in procuring the raw materials whether they use locally available raw materials or imported raw materials. The problems arise due to faulty and

irregular supply of raw materials. Non-availability of sufficient quantity of raw materials, sometimes poor quality of raw materials, increased cost of raw materials, foreign exchange crisis and above all lack of knowledge of entrepreneurs regarding government policy are other few hindrances for small-scale sector.

4. Absence of organised marketing:

Another important problem faced by small-scale units is the absence of organised marketing system. In the absence of organised marketing, their products compare unfavourably with the quality of the product of large- scale units. They also fail to get adequate information about consumer's choice, taste and preferences of the type of product. The above problems do not allow them to stay in the market.

5. Lack of machinery and equipment:

Small-scale units are striving hard to employ modern machineries and equipment in their process of production in order to compete with large industries. Most of the small units employ outdated and traditional technology and equipment. Lack of appropriate technology and equipment create a major stumbling block for the growth of small-scale industries.

6. Absence of adequate infrastructure:

Indian economy is characterized by inadequate infrastructure which is a major problems for small units to grow. Most of the small units and industrial estates found in towns and cities are having one or more problems like lack of of power supply, water and drainage problem, poor roads, raw materials and marketing problem.

Thus absence of adequate infrastructure adversely affect the quality, quantity and production schedule of the enterprises which ultimately results in under-utilization of capacity.

7. Competition from large-scale units and imported articles:

Small-scale units find it very difficult to compete with the product of large-scale units and imported articles which are comparatively very cheap and of better quality than small units product.

8. Other problems:

Besides the above problems, small-scale units have been of constrained by a number of other problems also. They include poor project planning, managerial inadequacies, old and orthodox designs, high degree of obsolescence and huge number of bogus concerns.

Due to all these problems the development of small-scale industries could not reach a prestigious stage.

GLOBALIZATION AND SMALL SCALE INDUSTRIES IN INDIA.

Global and national changes implications for small scale industriesLast decade was a remarkable period in terms of policy changes nationally as well asinternationally. Since the beginning of 1990s, policy changes have been taking place at two different levels: global and national. Both have implications for the functioning andperformance of SSI in Jordan. Globalization refers to free movement of factor inputs as well as output among countries. However, the developments that have been taking place since the early 1990s are mostly reference to the movement of capital, commonly known as Foreign 3 Direct Investment (FDI), and the free movements of goods, particularly from the developed not the developing economics.The liberalization of FDI regimes and the strengthening of international standards for thetreatment of foreign investors give foreign firms greater freedom in making internationally location decisions. More than 58 countries have annually introduced changes in their investment regimes during the 1991-2006. In 2001 alone, 70 countries made a total of 150 regulatory changes, of which 147 were more favorable to foreign investors (Stiglitz 2002). As a result, global FDI increased from US $ 209 billion in 1990 to US $ 1591 billon in 2000. The increased flow of FDI has led to its greater share in gross capital formation in all industries as well as manufacturing industries (Table 1). The increase was more significant in developing countries. This would have led to intensifying competition in the national as well as international markets for small firms.advantages:

THE advantages and disadvantages of globalization to small scale industries in India.Increased free trade between nationsIncreased liquidity of capital allowing investors in developed nations to invest in developing nationsCorporations have greater flexibility to operate across bordersGlobal mass media ties the world togetherIncreased flow of communications allows vital information to be shared between individuals and corporations around the worldGreater ease and speed of transportation for goods and peopleReduction of cultural barriers increases the global village effectSpread of democratic ideals to developed nationsGreater interdependence of nation-statesReduction of likelihood of war between developed nationsIncreases in environmental protection in developed nationsdisadvantages：Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor

Increased likelihood of economic disruptions in one nation effecting all nations Corporate influence of nation-states far exceeds that of civil society organizations and

average individuals Threat that control of world media by a handful of corporations will limit cultural

expression

Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage

Greater risk of diseases being transported unintentionally between nations Spread of a materialistic lifestyle and attitude that sees consumption as the path to

prosperity International bodies like the World Trade Organization infringe on national and

individual sovereignty Increase in the chances of civil war within developing countries and open war between

developing countries as they vie for resources Decreases in environmental integrity as polluting corporations take advantage of weak

regulatory rules in developing countries

Globalization refers to the process of integration of the world into one huge market. It provides several things to several people with removal of all trade barriers among countries. Globalization happens through three channels: trade in goods & services, movement of capital and flow of finance. Globalization in India is generally taken to mean ‘integrating' the economy of the country with the world economy. The real thrust to the globalization process was provided by the new economic policy introduced by the Government of India in July 1991 at the behest of the IMF and the World Bank. Globalization has led to an ‘Unequal Competition'- a competition between ‘giant MNC's and dwarf Indian enterprises'. The small scale sector is a vital constituent of overall industrial sector of the country. The small scale sector forms a dominant part of Indian industry and contributing to a significant proportion of production, exports and employment. Therefore, the present study analyzes the impact of globalization on Indian Small Scale Industries. The main theme of the paper is to evaluate the performance of SSI, before and after liberalization and compare them with average annual growth rates, to know their impact of Globalization on the performance of SSI. The period of the study is 1973-2007 and based on secondary information.

This book is about technology and competitiveness of the Indian small scale industries. The phenomena of globalization, liberalization and rapid technological developments are changing business environments in the recent decades. Globalization and liberalization process is exposing small enterprises to market competition at a greater extent and also intensifying the competition, whereas technological developments are providing opportunities for these enterprises to improve competitive strength so as to deal with the open market competition. Indian small enterprises that have operated since long in a doubly protected market (protected from domestic large units and from international competition) require drastic changes in their technologies to cope with the intensifying market competition. This book probes into the technological change in small enterprises especially its causes, constraints and impact on competitive strength. The book uses an eclectic approach so as to cover the actual process of technological change in the small enterprises and its determinants, and is based on the primary survey data relating to small scale enterprises in three industries, namely, Auto Components, Electronics and Garments. The study finds that size of the enterprise, availability of finance and labour as

the main factors influencing the technological upgradation in the Indian small enterprises. All three variables have important policy implications.

ANALYSIS OF THE REPORT ON MARKETING IN SMALL SCALE INDUSTRIES

ANALYSIS

Though the IIA and the SSI are one of the main and the biggest centers under the public sector under the government it does not have the complete the complete freedom to work on its own will. It has to work with accordance to other governmet firms, which help them to work in a smooth and a proper manner. the analysis done for the above project would be , that as the firm is a small scale industry it has minimum and restricted sources to market their product.

All the ways that are used by the firms are under the guidance of the government of india, which does not allow the marketing strategies to be very flexible for the business owners. During the internship program the main problem that came across us was the limited bounderies to expand and reach out.

Moreover a set design of products also poses problem equally. The industries cannot be innovative with the product design of their products.

The government has been playing a vital role for that upbringing of the small scale industries in uttar Pradesh particularly, the different schemes introduced by the government, has been of great help to the small scale industries in uttar Pradesh itself.

As we talk about the marketing strategies being employed under this sector, it is important for us to know that the means are very restricted and limited, as the government does not allow the private dispatch of the products being manufactured by these firms.

The SSI sector is a vital constituent of the economy.the economic structure can be analyzed by applying the various methods of the calculations of the position of the economic strength . these help to find out the various determinants for the output of the SSI.

DETERMINANTS OF COMPETITIVENESS OF SMALL-SCALE

INDUSTRIES IN INDIA

Competitiveness is a multi-dimensional concept. This is evident, for instance, in the analysis of its nature, types and levels in manufacturing industries and trade competitiveness describes the ability of Small-Scale Industries (SSIs) to generate income/output and maintain employment levels in the face of domestic and global competition. Consequently, in the absence of competitiveness, SSIs may face the problem of sickness or closure. Hence, all policy efforts to enhance. Policy literature on India’s SSIs in post-WTO includes Government of India (1997), SIDBI (2001) and Government

of India (2001). These studies do emphasis the role of infrastructure and business environment for the growth and competitiveness of SSIs. However, these studies were carried out at a national level of aggregation. Given the importance of sub-national level planning for industrial development in general, and for development of SSIs in particular, there is a policy need to carry out regional (or State level) and intra-regional (or intra-State) study on determinants of competitiveness in India. This type of studies will have the potential to deliver policy implications to correct for inter-regional imbalances, because they are related to competitiveness of SSIs.

ANNEXURE

CURRICULUM VITAE

CONTACT INFORMATION-

NAME: LAVANYA

ADDRESS: A – 62 RAJA JI PURAM, TALKATORA ROAD. LUCKNOW 226017 . UTTAR PRADESH.

MOBILE NO.: 9044568747

EMAIL: lavanyasingh90@gmail.com

PROFILE-

I am a simple girl with high thinking. I have leadership qualities in my personality and can very well coordinate in a group/team. I am very interactive and confident can easily communicate with the people. Presently I am searching for an opportunity in a renounced organization where I can come up with my capabilities.

VISION-

To enhance on my skills and abilities in different situations of the organization. Create opportunities for the betterment of the firm and myself by hard work and sincerity

KEY OF SUCCESS –

Team work

Communication

Leadership

CAREER OBJECTIVES

To find an appropriate role and position in the field of marketing to know more about my capabilities and opportunities, and work accordingly.

PERSONAL INFORMATION-

DATE OF BIRTH: 15th DECEMBER, 1990

PLACE OF BIRTH: LUCKNOW

CITIZENSHIP: INDIAN

GENDER: FEMALE

LANGUAGE: HINDI , ENGLISH.

EDUCATION-

HIGH SCHOOL: IN 2007 FROM LORETO CONVENT LUCKNOW ICSE BOARD. SECURING 63.4 %.

INTERMEDIATE: IN 2009 FROM LORETO CONVENT INTERMEDIATE COLLEGE, LUCKNOW, and ISC BOARD. SECURING 71.3%.

GRADUATION: PURSUING BBA FROM AMITY UNIVERSITY, LUCKNOW

SEMESTER SGPA CGPA 1 7.19 2 7.68 7.44 3 7.64 7.51

SPECIALIZATION: WANT TO OPT FOR MARKETING

WORK EXPERIENCE/TRAINING-

Work experience nil.

INTERESTS/HOBBIES: LISTENING MUSIC, TRAVELLING, PLAYING BASKET BALL AND THROW BALL, MAKING HANDICRAFTS. AND I HAD REPRESENTED MY SCHOOL; IN MANY INTER SCHOOL SPORTS EVENTS.

I HERE BY DECLARE THAT ALL THE ABOVE INFORMATION GIVEN HERE ARE TRUE TO MY KNOWLEDGE

BILBLIOGRAPHY

INTERNET INFORMATION

GOOGLE .COM

WIKIPEDIA.COM

SSI.GOV.IN

PRINT MEDIA

TOI

BUSINESS TIME

TENDER JOURNALS

ORGANIZATION

WRITTEN INFORMATION PROVIDED BY THE FIRM, AVADH INDUSTRIES.