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4 Pillars of india
 

4 Pillars of india

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    4 Pillars of india 4 Pillars of india Presentation Transcript

    • 04 – ALANA SHAH
      05 – SHARATH BANGERA
      32 – ANUPAMA JHA
      35 – SIDDHARTH JOSHI
      FOUR PILLARS OF INDIA INC.
    • CONTENTS
      SMALL AND MEDIUM ENTERPRISES (SMEs)
      FAMILY MANAGED BUSINESS
      SMALL SCALE INDUSTRIES (SSIs)
      PUBLIC SECTOR UNITS (PSUs)
    • Small And Medium Scale Industries(SME)
    • SME’s
      In developing countries SME’s are the backbone of nations Economy
      Significant contribution to GDP (7%)
      India has 3Million SME’s
      50% Industrial output
      42% of India’s Exports
    • SME Definition
      Various countries follow different definitions for the SME sector.
      The Indian definition based:
      Any Business Enterprise that involves manufacturing,processing and servicing operations or only trading activities with an annual turnover (sales/gross income) up to Rs 50crores
    • SME contd…..
      The Micro, Small and Medium Enterprises Development Act 2006 facilitates by providing:
      Promotion and development
      Enhancing competitiveness
      Act Categorizes SME’s as:
      Micro Enterprises
      Small Enterprises
      Medium Enterprises
    • Type of SME’s
      Ganguly Committee recommended three types of SME for India:
      TINY Type :
      Turnover Rs 2 crores
      Small Type :
      Turnover Rs 2 crores to 10 crores
      Medium Type :
      Turnover Rs 10 crores to 50 crores
    • Importance of SME’s in India
      Large scale generation of Wage Employment
      Dominant contributor to well being of India
      Low financial resources but still a growth driver
      Rapid progress and prosperity due to less time for business setup
      Based on 4 C’s
      Customer Focus
      Cost Control
      Cross Sale
      Containing Risk
    • contd…
    • SME’s in all Sectors
      Food Processing
      Agricultural Inputs
      Chemicals & Pharmaceuticals
      Engineering; Electricals; Electronics
      Electro-medical equipment
      Textiles and Garments
      Leather and leather goods
      Meat products
      Bio-engineering
      Sports goods
      Plastics products
      Computer Software, etc.
    • SME’s in Maharashtra
      ELECTRICAL
      Filter-On Pvt. Ltd., Pune
      Seva Engineering Pvt. Ltd., Pune
      ENGINEERING
      Atul Electro Formers Pvt. Ltd., Pune
      Mahavir Group of Industries, Pune
      FOOD PROCESSING
      Sairaja Fruit & Food Processing Pvt. Ltd, Phaltan
      Gadre Marine Products, Ratnagiri
      AditiPectins Private Limited, Islampur, Dist. Sangli
      Sushant Bio-Pharmaceuticals Pvt. Ltd., Kolhapur
    • Limitations of SME’s
      Low Capital base
      Low Technology base
      Comparatively lesser quality products
      Economic Efficiency limited
      Inadequate contribution towards R & D
      For India in specific threats from China
      Risk aversion in Lending due to high NPA
    • Solutions and Future
      Setting up of network of District Industries Centre (DICs)
      National Banking and Finance Corporations
      To Activate Small Industries Development Bank of India’s (SIDBI’s)
      Credit Delivery for SME to be speeded up
    • FAMILY MANAGED BUSINESS
    • INTRODUCTION
      A Family-owned business is one that is owned and managed (that is controlled) by one or more family members.
      Family-owned firms are –
      “Organizations where two or more extended family members influence the directions of the business through the exercise of management roles or ownership rights.”
      Over 80% of world business is controlled by families.
      Some of the world's largest corporations, from Wal-Mart to News Corp. to Ford Motor are family businesses.
    • Family-owned businesses continue to form the backbone of the American economy.
       In India too, the highest generator and creator of wealth are family – owned businesses.
      Some 35% of Fortune 500 companies are family-controlled.
      Family businesses account for 50% of U.S. gross domestic product.
      They generate 60% of the country's employment and 78% of all new job creation.
      • 33% survive to the second generation
      • 15% survive to the third generation
    • CHARACTERISTICS
      Loyalty
      Family Relationship
      Male dominated
      Active and non-active members
    • Tata Sons, the premier promoter company of the Tatas was established by JamsedhjiTata in 1868 and is India's largest and most respected business conglomerates, comprising 98 operating companies in seven industrial sectors
      Ratan Tata shook up the group, focusing on the development of high-tech companies and putting the Tatas at the forefront of the Indian economic miracle.
      Family values nurtured and unity shown by Tatas have made them successful.
      Tatas trust and respect enjoyed by them is unmatched in the history.
      They have managed their business without spilling the family beans
      Nurtured highly principled value system
    • Family values nurtured and unity shown by Tatas have made them successful.
      Tata s trust and respect enjoyed by them is unmatched in the history.
      They have managed their business without spilling the family beans
      Nurtured highly principled value system
    • ADVANTAGES OF FAMILY BUSINESSS
      Common Values
      Strong Commitment
      Stability
      Loyalty
    • CHALLENGES IN FAMILY BUSINESS
      Family Emotions
      Family or Business: What comes first?
      Succession Planning
      Retaining non-family proposals
    • Kongo Gumi-End of a 1400 yr old company
      KongoGumi,a Japanese construction company and was the world's oldest continuously ongoing independent family managed business, operating for over 1,400 years until it was absorbed as a subsidiary of another larger construction company.
      The world's oldest continuously operating family business -Japanese temple builder Kongo Gumi succumbed to excess debt and an unfavorable business climate in 2006.
    • KEYS TO SUCCESS OF KONGO GUMI
      The factors that were responsible for the success of the 1400 years old business was:
      The belief system of the business survived for thousands of years and had many millions of adherents.
      He has cited the company's flexibility in selecting leaders as a key factor in its longevity.
      The factors of Kongo Gumi’s success is a mixture of conservatism and flexibility.
    • END OF THE BUSINESS
      Two factors were primarily responsible:
      First, during the 1980s bubble economy in Japan, the company borrowed heavily to invest in real estate. After the bubble burst in the 1992-93 recession, the assets secured by debt shrank in value.
      Second, social changes in Japan brought about declining contributions to temples and the demand for Kongo Gumi's temple-building services dropped sharply beginning in 1998.
    • SMALL SCALE INDUSTRIES
    • WHAT IS SSI?
      Initially SSI were classified into two categories- those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100.
      An industrial unit can be categorized as a small- scale unit if it fulfils the capital investment limit fixed by the Government of India for the small-scale sector.
      Key parameters
      Investment – Upto 5 crores
      Employment – Less than 200
      Products – Mostly unbranded
    • SSI in INDIA
      Contributes almost 40% of the gross industrial value added in the Indian economy.
      Employment generation next only to agriculture.
      Contribution to exports
    • Percentage of SSI in total exports
    • Importance of SSI
      Employment
      Rural development
      Reduces inequality of income
      Operational flexibility
      Assists large scale industries
      Foreign exchange
    • Types of SSI
      SSI
      Traditional
      Modern
      Khadi
      Ancillaries
      Handlooms
      Tiny/Small /Medium
      Enterprises
      Cottage
      Small-Scale Service
      and Business Enterprises
      Sericulture
    • SuccessStories
      Bombay Dyeing
      • Founded in 1879 by Sir NowrosjeeWadia
      • Floated on a capital of Rs 1 lakh
      • Engaged in manufacture of yarn and textile fabrics
      Camlin
      • Started in 1931 by D. P. Dandekar
      • Initially called Camel
      • Manufactured ink
      • Today has a wide range of stationery products
    • Problems faced by SSI
      Internal
      • Lack of professional expertise
      • Improper planning
      • Lack of training
      External
      Financial and credit support
      Technology
      Marketing
      Competition
    • Finance and Specialised support service providers
      FINANCE
      SIDBI
      Co-op banks
      NABARD
      MARKETING
      NSIC
      SIDO
      EPC
      S S I
      ENTREPRENEURSHIP
      DEVELOPMENT
      SIDO
      EDI
      Special Institutes
      TECHNOLOGY
      UPGRADATION
      SIDO
      SISI
    • Government initiatives
      Exemption for excise duty limit raised from Rs. 50 lakhs to Rs. 1 crore
      The composite loans limit raised from Rs. 10 lakhs to Rs.25 lakhs
      The Nayak Committee's recommendations regarding working capital
    • PUBLIC SECTOR UNIT
    • Definition
      • Public Sector Enterprises are those enterprises which are directly or indirectly managed by the government, local public bodies and other public agencies or companies in which the government owned a majority of the company equity.
      • Public Sector occupies a significant place to achieve systematic and planned growth especially in developing countries like India.
      • An effective instrument to regulate the pace and composition of private economic activity in a mixed economy.
    • Contribution-to-GDP-growth-FY2003-08-per-cent_ts_standard
    • Classification of Public Sector
      Commercial Public Enterprises:
      Eg: State Trading Corporation of India Ltd., Minerals and Metals Trading Corporation Ltd., Food Corporation of India, Indian Oil Corporation and Cotton Corporation of India.
      Manufacturing Public Enterprises:
      Eg: Enterprises engaged in the manufacture of steel, oil, machinery, chemicals, fertilizers, engg equipments, minerals etc.
    • Financial Public Enterprises :
      Eg: IDBI, SBI, State Finance Corporations, Nationalized Commercial Banks etc.
      Promotional Public Enterprises :
      Eg: National Industrial Development Corporation Ltd, Indian Mines Bureau are promotional by nature.
      Public Utilities :
      Eg: Doordarshan, Akashavani, Road Transport Corporations, Railways, Post and Telegraphs etc.
    • Objective
      To promote export to reduce imports
      To eliminate dependence on foreign aid and foreign technology
      To attain Self-reliance in different technologies
      To control the sensitive sectors such as distribution system, allocation of scarce imported commodities etc
      To bridge the gap between rich and poor
      • To create and enhance employment opportunities
      • To exercise social control and regulation through public finance institutions
      • To check monopolies and concentration of power in few hands
      • To promote infrastructural facilities for the growth of the economy
    • Performance of PSU
      Public enterprises do not run on considerations of profitability like Private enterprises.
      They have wider social responsibilities to discharge such as:
      Securing a balanced regional growth.
      Redistribution of income and wealth.
      Providing infrastructure for development.
      Employment generation.
      Generating resources of development.
    • The record of public enterprises, on this count has been discouraging
      Year GP
      1980-1981 : 8%
      1990-1991 : 11%
      1995-1996 : 16%
      2005-2006 : 13-15%
    • Steel Authority Of India LIMITED
      • Largest steel maker in India
      • Owned and operated by Government of India.
      • The Government of India owns about 86% of SAIL's equity.
      • The company is among the top five highest profit earning corporate of the country.
      • Incorporated on January 24, 1973
      • Turnover of Rs. 48,681 crore
      • Annual production of 13.5 million metric tons
      • 1,50,000 employees
    • CLASSIFY THEM
      SAIL
      Indian Railways
      ONGC
      State Trading Corporation of India Ltd
      Unit Trust of India
      State Electricity Boards
    • ANSWERS
      SAIL : Manufacturing Public Enterprise
      Indian Railways : Public Utilities
      ONGC : Manufacturing Public Enterprise
      State Trading Corporation of India Ltd : Commercial Public Enterprise
      Unit Trust of India : Financial Public Enterprises
      State Electricity Boards : Public Utilities
    • Role of PSU
      Development Orientation
      Share in net domestic product
      Development of Natural Resources
      Generation of Employment
      Infrastructure
      Control over Economy
      Social Welfare
      Balanced Regional Development
    • Problems of Public Sector
      Lack of Clear Cut Objective
      Inefficient Management
      Increase in Cost of Construction due to Delay in Completion.
      Defective Location due to Political Interference .
      Price Policy
      Labor Problem
      Faulty Planning
    • Suggestions To Improve Its Working
      • Sector-Corporation
      • Efficient Management
      • Proper Auditing
      • Price Policy
      • Increase in Efficiency
      • Full Utilization of Productive Capacity
      • Autonomy of Public Enterprises
    • THANK YOU