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ACKNOWLEDGEMENT

This practical report is a synergistic product of many minds and has been accumulated over the

last few months. This has been a special practical report brought to fruition through the efforts of

some very special people. Many people contributed enthusiastically to this project, which reallycame together in the last few weeks before deadline. For their continuous guidance and valuable

advice I would like to take this opportunity to thank.

Firstly, I would like to thank Kalpi Institute of Technology, Kalpi distt. mbala ! who has

granted me this opportunity to prepare a practical report which has helped me to gain knowledge

beside my studies and which is also definitely going to be useful in future.

I would like to place on record my deep sense of gratitude to my parents for financial wisdomand inspiration that have guided and helped me from day one.

My "ubject In#charge, Er. Gaura Tal!ar ssistant $rofessor in Mechanical %epartment who

came in and battened down the hatches when things were flying about.

Gur"hyan #ingh

$oll No. %&''())

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INT$OD*CTION

#+all #cale In"ustries

The "mall#"cale Industries &""I' is a program of the Kurukshetra (niversity solely devoted to

assist the promotion and development of small and medium enterprises &"M)s' in the India

through training, research and consultancy. It also helped other countries in sia $acific *egion

build up their own "M) development capabilities.

The Institute for "mall#"cale Industries was established on March +, - through a bilateral

agreement between the *epublic of the (" and the /overnment of the India. Its principal

objective then as now was to assist and promote the development and growth of the small#scale

industrial sector in the India. 0riginally set up as the training institute for the India small

industries, it gradually built up its capabilities and e1panded its activities to include research,

e1tension, and information programs.

0n ugust 2, --, the Institute was established through *epublic ct 3o. 42 as a research

and e1tension unit of the Kurukshetra (niversity. The Institute had its permanent home with the

completion of the four stories ). 5irata 6all in -7.From then, K( I""I conducted several

consultancy training courses, seminars, technical studies in the field of medium and small#scale

industries with emphasis on Indian industries.

The ""I &"mall "cale Industries' today is immense for the growth of the country. "mall#scale

industries are the industries which are run with the help of hired labor and which also use some

simple machine ! power.

The investment scale in this industry varies from 8 9akhs to crore for the fi1ed assets.

Irrespective to no. of workers engaged is called small scale unit. The small#scale industries &""I'

constitute one of the vibrant sectors of the Indian economy in terms of employment generation,the strong entrepreneurial base it helps to create and its share in industrial production and

e1ports. The /overnment created the Ministry of "mall "cale Industries and gro and *ural

Industries &""I ! *I' in 0ctober --- as the nodal Ministry for formulation of policy and co#

ordination of :entral assistance relating to promotion and development of the small#scale

industries in India. The Ministry of "mall "cale Industries and gro and *ural Industries &""I !

2

http://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Asia-Pacifichttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Asia-Pacific

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*I' was bifurcated into two separate Ministries, namely, Ministry of "mall "cale Industries and

Ministry of gro and *ural Industries in "eptember, +44. Taking into account the high potential

for growth in the ""I sector in terms of output, employment and e1ports, the role of the Ministry

of "mall "cale Industries is to strengthen the ""I sector, to enable it to remain competitive in

market#led economy and generate additional employment opportunities. For achieving these

objectives, the endeavor of the Ministry is to provide the ""I sector proper and timely inputs

like;

deation.

de

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and not so encouraging support from the government. This is evidenced by the number of

registered units which went up from mere ,444 units in -84 to A,444 units in - and to

AA.B lakh units in +44B#47. s far as the output of the ""I unit is concerned, it was

*s.,++,82 crore in --2#-8 and this has considerably risen to *s. -8+ crore in +44B#+447

&at current prices'. $roduction in ""I sector during the last ten years has recorded an annual

average growth rate of 7. percent. The share of ""I in the countries industrial output is around

A- percent. ""I "ector plays a major role in IndiaCs present e1port performance. 28D to 84D of

the Indian e1port is being contributed by ""I sector. %irect e1ports from the ""I sector account

for nearly A8D of total e1ports. The number of small scale units that undertake direct e1ports

would be more than 8444. Its play an important role in economic development of India through

following points

$roduction

)mployment

)1port

0pportunities

,ro"uction

The small#scale industries sector plays a vital role in the growth of the country. It contributes

almost 24D of the gross industrial value added in the Indian economy. It has been estimated that

a million *upees of investment in fi1ed assets in the small scale sector produces 2.+ million

worth of goods or services with an appro1imate value addition of ten percentage points.

The small#scale sector has grown rapidly over the years. The growth rates during the various

plan periods have been very impressive. The number of small#scale units has increased from an

estimated 4.7B million units in the year -74#7 to over A million in the year +444. @hen the

performance of this sector is viewed against the growth in the manufacturing and the industry

sector as a whole, it instills confidence in the resilience of the small#scale sector.

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-ear Target Achiee+ents

--#-+ A.4 A.

--+#-A 8.4 8.

--A#-2 B.4 B.

--2#-8 -. 4.

--8#- -. .2

--#-B -. .A

--B#-7 E 7.2A

--7#-- E B.B

---#+444 E 7.

+444#+44 &$' E 7.-4

$# $rojected &pril#%ecember'

E# Target not at constant price

E+ploy+ent

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""I "ector in India creates largest employment opportunities for the Indian populace, ne1t only

to griculture. It has been estimated that 44,444 rupees of investment in fi1ed assets in the

small#scale sector generates employment for four persons.

Generation of E+ploy+ent In"ustry Group!ise

Food products industry has ranked first in generating employment, providing

employment to 4.27 million persons &A.D'. The ne1t two industry groups were 3on#

metallic mineral products with employment of 4.28 million persons &+.+D' and Metal

products with 4.AB million persons &4.+D'.

In :hemicals ! chemical products, Machinery parts e1cept )lectrical parts, @ood

products, asic Metal Industries, $aper products ! printing, 6osiery ! garments, *epair

services and *ubber ! plastic products, the contribution ranged from -D to 8D, the total

contribution by these eight industry groups being 2-D.

In all other industries the contribution was less than 8D.

,er unit e+ploy+ent

$er unit employment was the highest &+4' in units engaged in beverages, tobacco !

tobacco products mainly due to the high employment potential of this industry

particularly in Maharashtra, ndhra $radesh, *ajasthan, ssam and Tamil 3adu. 3e1t

came :otton te1tile products &B', 3on#metallic mineral products &2.', asic metal

industries &A.' and )lectrical machinery and parts &.+.' The lowest figure of +.2 was

in *epair services line.

$er unit employment was the highest &4' in metropolitan areas and lowest &8' in rural

areas. 6owever, in :hemicals ! chemical products, 3on#metallic mineral products and

asic metal industries per unit employment was higher in rural areas as compared to

metropolitan areas=urban areas. In urban areas highest employment per unit was in

everages, tobacco products &A persons' followed by :otton te1tile products &7', asic

metal industries &A' and 3on#metallic mineral products &+'.

Location!ise E+ploy+ent Distri/ution $ural

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3on#metallic products contributed ++.BD to employment generated in rural areas. Food

$roducts accounted for +.D, @ood $roducts and :hemicals and chemical products

shared between them B.8D.

*r/an

s for urban areas, Food $roducts and Metal $roducts almost e

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-7#-- B4. B.87 +.

---#+444 B8.2 BB.A A.AA

E0port

""I "ector plays a major role in IndiaCs present e1port performance. 28D#84D of the Indian

)1ports is contributed by ""I "ector. %irect e1ports from the ""I "ector account for nearly A8D

of total e1ports. esides direct e1ports, it is estimated that small#scale industrial units contribute

around 8D to e1ports indirectly. This takes place through merchant e1porters, trading houses

and e1port houses. They may also be in the form of e1port orders from large units or the

production of parts and components for use for finished e1portable goods.

It would surprise many to know that non#traditional products account for more than -8D of the

""I e1ports. The e1ports from ""I sector have been clocking e1cellent growth rates in this

decade. It has been mostly fuelled by the performance of garments, leather and gems and

jewellery units from this sector. The product groups where the ""I sector dominates in e1ports

are sports goods, readymade garments, woolen garments and knitwear, plastic products,

processed food and leather products. The ""I sector is reorienting its e1port strategy towards the

new trade regime being ushered in by the @T0.

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Opportunity

The opportunities in the small#scale sector are enormous due to the following factors;

9ess :apital Intensive

)1tensive $romotion ! "upport by /overnment

*eservation for )1clusive Manufacture by small scale sector

$roject $rofiles

Funding # Finance ! "ubsidies

Machinery $rocurement

*aw Material $rocurement

Manpower Training

Technical ! Managerial skills

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Tooling ! Testing support

*eservation for )1clusive $urchase by /overnment

)1port $romotion

/rowth in demand in the domestic market si>e due to overall economic growth

Increasing )1port $otential for Indian products

/rowth in *eation of

the whole system of ""I registration, in -7-.

*egistration of "mall "cale, 5illage and :ottage industries are done under two stages, vi>#

$rovisional

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$ermanent *egistration

,roisional $egistration;

$rovisional registration is granted to a unit at its pre# investment $eriod to enable it to

take necessary steps to apply for financial credit, land or an industrial set, water, power or

telephone connections, etc.

,er+anent 1 2inal $egistration3

provisionally registered industrial unit when it is about to go into production is to apply

for grant of $ermanent = Final *egistration. n e1isting and functioning industrial unit is

eligible to apply for $ermanent = Final *egistration without going into provisional

registration processes.

2inancial $e4uire+ents

"ince Independence /overnment of India has been giving all possible encouragement of ""I.

number of organi>ations have been set up by the /overnment of India to provide assistance and

incentive to small#scale industries. These packages of assistance are provided to ""I by a large

number of organi>ations operating at national and "tate level. %evelopment $rogrammers are

being carried out at two levels

3ational level

"tate level

gencies which work at National leelare;#

"mall "cale Industrial oard &""I'

"mall "cale Industries %evelopment 0rgani>ation

3ational "mall "cale Industries :orporation.

gencies which work at #tate leelare;#

"tate %irectorate of Industries

%istrict Industrial :enter &%I:'

"tate "mall Industrial :orporation &""I:'

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"tate Financial :orporations

:ommercial anks

"mall Industries %evelopment ank of India &"I%I'

National Leel ##I5

It is all advisory body and comprises "tate /overnment Ministers 0ffices and representatives of

several Institutions and associations. Its functioning is to plan, advice and coordinate the

activities of :entral and "tate /overnment. s such it does not render direct help to

entrepreneurs. 6owever, it helps the /overnment in involving new policy and programmer for

small#scale sector.

#+all In"ustries Deelop+ent Organi6ation 7#IDO8

Its 6eadation &"I%0'. It is an ape1 body for assisting the Ministry

in formulating, coordinating, implementing and monitoring policies and $rogrammers for the

promotion and development of small#scale industries in the country and is headed by the

%evelopment :ommissioner &""I'.

In addition, the "I%0 provides a comprehensive range of common facilities, technology support

services, marketing assistance, etc., through its network of A4 "mall Industries "ervice Institutes

&"I"Is', +7 ranch "I"Is, B Field Testing "tations &FT"', 2 *egional Testing :enters, + "mall

)ntrepreneur $romotion and Training Institutes &")$TI' and 6and Tool %esign %evelopment

and Training :enter. The "I%0 also has a network of Tool *ooms, $rocess#cum#$roduct

%evelopment :enters &$$%:s' and technology and training support institutes which are run as

autonomous bodies registered as societies under the "ocieties ct. Its head

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%istribution of scare raw material imported components.

Marketing assistance.

ssistance to ""I in securing orders for railway and defense.

0perating a credit guarantee scheme for those units which are

*egistered within.

#tate 2inancial Corporations

lmost every state has its own financial corporation to provide machines and long term loans to

small and medium scale industries. mount of loan varies from *s. 8444 to *s. .44 9akhs and

these loans are repayable in eed institutes

like G :entral Institute of Tool %esign, 6yderabad, :entral Tool *oom, 9udhiana and Kolkata,

:entral Institute of 6and Tools Halandhar, Institute for %esign of )lectrical Measuring

Instruments &I%)MI' Mumbai, Integrated Trading center, 3ilokheri, 3ational Institute of "mall

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Industry )1tension, 6yderabad and 3ational Institute for )ntrepreneurship and "mall usiness

%evelopment. They conduct special courses, $rogrammers, workshops, training $rogrammers for

the benefit of small#scale industries.

Cre"it #upport

:redit is the prime input for sustained growth of small#scale sector and its availability continued

to be a matter of concern. To provide credit support to the various ""I units various policies

have been formulated by the /0I. 5arious institutes like "F:, "I%:, 3I":, "I%I are providing

financial support to various ""I units.

0verview of the steps taken by the /0I

:omposite loans limit raised from *s. 4 9akhs to *s. +8 9akhs.

In the 3ational e

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$roduct planning involves three important considerations#

The development and introduction of new ideas

The modification of e1iting lines as may be re

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Intro"uction ; *ses of ,ro"uct

5ench

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Metal!or9ing

In addition to woodworking, bench vises also have many uses in metalworking as well. ench

vises can be used to hold metal in place to be cut or modified.

*sing a #a!

ench vises are also e1tremely useful when using a saw to cut lumber for your woodworking

projects. (sing a vise is by far the most reliable way to hold a piece of stock in place while

cutting it. If you have ever had trouble using a saw freehand and wished that you had a way to

better hold your lumber in place, a bench vise will provide the solution that you need.

Wor9ing !ith a Drill

If you are planning a project involving the use of a drill, you will definitely benefit from access

to a bench vise. vise is absolutely vital when performing a task like drilling that ree the amount

of use you get out of it.

,lant Layout

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LAND $E=*I$EMENT

9and type ; $urchas

rea re

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#erial

No.

Ite+ =uantity *nit Cost 7$s.8 Total

Milling machine + 74,444 4,444

+ 9athe machine + 44,444 +44,444

A :old roller 28,444 28,444

2 /rinding machine + A4,444 4,444

8 %rilling machine B8,444 B8,444

Higs and fi1tures A4,444 A4,444

B 0ther re

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+ /rinding

operator

year

e1perience

+ B,444 2,444

A 9athe operator +#A year

e1perience

+ -,444 7,444

2 %rilling

operator

year

e1perience

B,444 B,444

8 :old rolling

operator

+#Ayear

e1perience

7,444 7,444

$ainter year

e1perience

+ 8,844 ,444

B "killed

inspector

+ years

e1perience

+ ,444 ++,444

$rere

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+ /rinding

operator

year

e1perience

+ B,444 2,444

A 9athe operator +#A year

e1perience

+ -,444 7,444

2 %rilling

operator

year

e1perience

B,444 B,444

8 :old rolling

operator

+#Ayear

e1perience

7,444 7,444

$ainter year

e1perience

+ 8,844 ,444

B "killed

inspector

+ years

e1perience

+ ,444 ++,444

$rere

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A *eceptionist /raduate in

any field

,444 ,444

8 "crap yard

guard

Matriculate 2,444 2,444

"tore keeper year e1perience

8,444 8,444

B "ecurity guard + years

e1perience

+ ,444 +,444

7 "weeper ##### A,444 A,444

$rere

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Machinery and e

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%rilling holes for fastening of vice on bench

Milling operation is performed for attaining the actual si>e of jaw face

$lanning is done to finish the jaw faces

Inspection is done for checking any defects

$ainting is performed for decoration ! prevent from corrosion

*e#inspection is again performed for proper checking before packing

$roper storage is done after inspection ! ready for delivered

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