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Small and medium enterprises ppt
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- 2. INTRODUCTION By theenactment of small and medium enterprises development act, 2006 the small and medium sector has been defined as small and medium enterprises with effect from OCTOBER 2006 The classification has been done on the basis on investment in plant ad machinery in case of manufacturing enterprises and investment equipment's in case of service
- 3. SMALL ENTERPRISES Theseare those enterprises where the investment in plant and machinery in more than Rs. 25 lakhs But does not exceed Rs. 5 crores Where the investment in equipment is more than Rs. 10 lakh but not exceed Rs. 2 crore.
- 4. MEDIUM ENTERPRISES Theseare those where the investment in plant and machinery is more than Rs. 5 crore but does not exceed 10 crore Where the investment in equipment is more than Rs. 2crore but does not exceed 5 crore
- 5. OBJECTIVES To createpermanent employment opportunities to public at large at relatively small costs To meet a major part of the increased demand for consumer good and simple producer goods To ensure more equitable distribution of national income to society at large scale To facilitate the mobilization of resources which might remain inadequately utilized,
- 6. IMPORTANCE SMe’s aremuch labour intensive than large scale industry. They provide more scope from the employments of worker SSI also sustainable as they are essential from combating poverty and employment The social cost of development small unit specially handicraft and village industry is lower
- 7. Cont.. Elasticity intechnical and economic organization in SSI is high as compared to large sector concern SSI are expected to earn more quick returns on capital invested in such industries where; gestation period is quite short is comparison to large scale industries
- 8. SMALL AND MEDIUM ENTERPRISESDEVELPOMENT ACT, 2006 This act was passed on october2, 2006 the main features: Setting up of a national board for MSMEs Classification of enterprises Advisory committees to support MSMEs Measures for promotion, development and enhanced MSMEs Schemes to control delayed payments of MSMEs
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- 10. MERGER Merger isan transaction that result in the transfer of ownership and control of a corporation When one company purchases another company of an approximately similar size. The two company come together to become one Two company usually agree to merge when they feel that they can do something together that they can not do one their own.
- 11. Acquisition An acquisitionmay be an act of acquiring effective control by one company over assets or management of another company without any combination of companies Companies may remain Independent, separate but there may be change is control of companies It is also known as takeover and or a buyout
- 12. TYPES OF MERGER& ACQUISITION Horizontal merger Vertical merger Market- extension merger Product- extension merger conglomeration
- 13. DIFFERENCE BITWEEN MERGER ANDACQUISITION MERGER Merging of two organization in to one It is the mutual decision Merger is expensive than acquisition Through merger shareholder can increase their net worth It is time consuming and the company has to maintain so much legal issue Dilution of ownership occurs in merger
- 14. ACQUISITION Buying oneorganization by another It can be friendly takeover or hostile takeover Acquisition is less expensive than merger Buyer cannot raise their enough capital It is faster and easier transaction The acquire does not experience the dilution of ownership
- 15. PROBLEMS WITH INM&A Integration difference- Inadequate evolution of target Large extraordinary debt Inability to achieve synergy Overly diversified
- 16. OBJECTIVES AND BENEFITS Marketshare Patent right Desired to enjoy monopoly Economy of scope Synergy Effect of training Economic of scale
- 17. Elimination ofcompetition Adaption of modern technology others
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