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