Description
Small Scale Marketing
Introduction to small scale industries
The small-scale industries sector plays a vital role for the growth of the country. It contributes 40% of the gross manufacture to the Indian economy. It has been estimated that a lakh rupees of investment in fixed assets in the small scale sector produces 4.62 lakhs worth of goods or services with an approximate 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 positive trend is likely to strengthen in the coming years. This trend augurs a bright future for the small-scale industry Traditionally, they produce certain specialized items for which they enjoy virtual monopoly because of skill and expertise developed over the years. Many items produced in the small-scale sector are also used as raw materials in the large-scale industry and thus small-scale industries contributed to large-scale production in no small measure. However, in Indian economy, the small-scale industries will have to face stiff and challenging competition from the large-scale industrial sector. In India, the small-scale industries are protected from competition from the large-scale sector by means of subsidies, grants, monetary incentives from the Government, reservation of certain items of production in the small-scale sector etc. the small-scale industrial sector is not insulated from competition from the large scale sector and for their survival and growth, they will have to face competition from the large scale sector out of their own ingenuity and resources.
Employment opportunities by SSI
SSI Sector in India creates largest employment opportunities for the Indian populace, next only to Agriculture. It has been estimated that a lakh rupees of investment in fixed assets in the small-scale sector generates employment for four persons. According to the SSI Sector survey conducted by the Ministry and National Informatics Center with the base year of 1987-88, the following interesting observations were made related to employment in the small scale sector. Food products industry has ranked first in generating employment, providing employment to 4.82 lakh persons (13.1%). The opportunities in the small scale sector are enormous due to the following factors: • Less Capital Intensive • • Extensive Promotion & Support by the Government Reservation for Exclusive Manufacture by small scale sector
• Project Profiles • Funding • Finance & Subsidies • • Machinery Procurement Raw Material Procurement
• Manpower Training • Technical & Managerial skills • Tools & Tools utilisation support • Reservation for Exclusive Purchase by Government • Export Promotion
• Growth in demand in the domestic markets to overall economic growth. • Increasing Export Potential for Indian products of Greenfield units coming up in the large-scale sector. The promotional and protective policies of the Government have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods. However, the bugbear of the sector has been the inadequacies in capital, technology and marketing. The process of liberalization will therefore, attract the infusion of just these things in the sector. • Growth in Requirements for ancillary units due to the increase in number
Introduction and history of the company
M.S.Masala traders are a spices manufacturing firm established in the year 1973 by Mr. Abdullahsha. Now the proprietor of this firm is his son Mr. Mohammed salim. it is into this industry This firm produces spices under its own brand name called “ Rose brand” & “Mahal brand” It is a proprietary firm. Initially it supplied all spices and allied products to hotels, canteens in Mumbai. But late in 1990’s it extended its market to retail shops, government canteen, and also to other states too. Present proprietor took this initiative.
As a part of a history the firm’s sales had gone down due to a manpower problem nearly for a two years. But now it has faithful employees working in this firm. Earlier the firm was managed the family members but later it was changed to a single proprietary firm. It’s not only into producing spices but also into dealer ship of certain well-branded products. it is been registered under the Bombay shops & establishments act.
Organization structure Proprietor Purchase & production Supervisor
Sales Supervisor
Sales representatives
Dispatch & delivery workers
Workers
There are around 22 employees working in the organization. As it is a proprietary organization the owner himself takes all the decisions from purchases of the product to pricing. The process of authority is like; the proprietor is the in charge of the sales & purchase supervisor. The supervisor’s reports to the proprietor regarding the daily proceedings. The supervisor is in charge of the sales & the purchases to be effected. the proprietor. As it is a spices producing company its quality has to be taken care off, so that there is daily inspection of the quality by
Production process
Raw material Purchasing
Cleaning &Roasting
Grinding
Packaging
All the raw material are purchased from Agricultural produce market committee & also from different states like andra pradesh, Tamil nadu etc. Initially before making the purchase the sample is been sent from the supplier of the goods. The owner goes through the quality & the order is placed. As the goods reach the company it is been verified with the sample. After verification it is been sent for cleaning. There are around four women working for cleaning the spices. After cleaning, certain products like meat masala, sambhar masala, chicken masala it needs a roasting of the formula of the spices. After the roasting is done it is sent for grinding. After the grinding is done it is been packaged in to different quantity starting from 5 kilograms pack to 50 grams pack. The packaging for 5 KG
to 3 KG is done in plastic coated bags & for 1 Kg to 50 grams is done in a corrugated boxes and polythene bags. There are around 50 items, which are been processed, so for each and every product the materials differ from each product. For e.g., certain products like Chilly powder, turmeric powder & coriander powder doesn’t need processes like roasting & mixing. The formula for producing products like rasam powder, vegetable masala, meat masala each is different from each other. So the production processes also varies from one another. The cost of production also differs from each other items & also from the market rate fluctuations. There has to be a great care to be taken because many of the items raw materials are similar to the other. the grinding part is been outsourced to mills working in Vashi. Investment Sales and profitability • The yearly turnover of this company is 45-50 lakhs. There is no fixed income or sales because there is the cutthroat competition in this industry. • The profit margin for each product is around 12 to 20%. It varies from each of the product. • The investment is between 5 to 8 lakhs. The prices of the raw material keeps on varying, hence there is no fixed profit for each of the product. The prices fluctuate on the demand and supply of the market. Hence there is no fixed profitability.
Problems Areas • This industry is not a much-organized sector. • Due to competition from big players like Everest Masala, badhshah masala, it is facing tough to sustain the competition. • Employees are not trust worthy. • Lack of space, due to which expansion is difficult. • Lack of advertising for the products. • Lack of affordability to employ skilled workers. • There is huge amount of credits given to the dealers & customers, where recovery also becomes difficult. • Higher cost of production.
Recommendations and conclusion
The Small Scale Industry today constitutes a very important segment of the Indian economy. Small Scale Sector has emerged as a dynamic and vibrant sector of the economy. To be a strong player in the food processing industry, the following suggestions should be implemented;• As the company is in food processing industries it should register itself with the small-scale industries. i.e., the directorate of industries. So that it ca claim incentives & tax benefits. • After registering itself, the company can apply for finance, so that it can lower it production cost. • With the finance availed it can introduce new machinery so that it can lower its manpower. • Should also explore the international market. When the performance of this sector is viewed against the growth in the other industry sector as a whole, it instills confidence in the resilience of the smallscale sector. Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification.
doc_795396368.doc
Small Scale Marketing
Introduction to small scale industries
The small-scale industries sector plays a vital role for the growth of the country. It contributes 40% of the gross manufacture to the Indian economy. It has been estimated that a lakh rupees of investment in fixed assets in the small scale sector produces 4.62 lakhs worth of goods or services with an approximate 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 positive trend is likely to strengthen in the coming years. This trend augurs a bright future for the small-scale industry Traditionally, they produce certain specialized items for which they enjoy virtual monopoly because of skill and expertise developed over the years. Many items produced in the small-scale sector are also used as raw materials in the large-scale industry and thus small-scale industries contributed to large-scale production in no small measure. However, in Indian economy, the small-scale industries will have to face stiff and challenging competition from the large-scale industrial sector. In India, the small-scale industries are protected from competition from the large-scale sector by means of subsidies, grants, monetary incentives from the Government, reservation of certain items of production in the small-scale sector etc. the small-scale industrial sector is not insulated from competition from the large scale sector and for their survival and growth, they will have to face competition from the large scale sector out of their own ingenuity and resources.
Employment opportunities by SSI
SSI Sector in India creates largest employment opportunities for the Indian populace, next only to Agriculture. It has been estimated that a lakh rupees of investment in fixed assets in the small-scale sector generates employment for four persons. According to the SSI Sector survey conducted by the Ministry and National Informatics Center with the base year of 1987-88, the following interesting observations were made related to employment in the small scale sector. Food products industry has ranked first in generating employment, providing employment to 4.82 lakh persons (13.1%). The opportunities in the small scale sector are enormous due to the following factors: • Less Capital Intensive • • Extensive Promotion & Support by the Government Reservation for Exclusive Manufacture by small scale sector
• Project Profiles • Funding • Finance & Subsidies • • Machinery Procurement Raw Material Procurement
• Manpower Training • Technical & Managerial skills • Tools & Tools utilisation support • Reservation for Exclusive Purchase by Government • Export Promotion
• Growth in demand in the domestic markets to overall economic growth. • Increasing Export Potential for Indian products of Greenfield units coming up in the large-scale sector. The promotional and protective policies of the Government have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods. However, the bugbear of the sector has been the inadequacies in capital, technology and marketing. The process of liberalization will therefore, attract the infusion of just these things in the sector. • Growth in Requirements for ancillary units due to the increase in number
Introduction and history of the company
M.S.Masala traders are a spices manufacturing firm established in the year 1973 by Mr. Abdullahsha. Now the proprietor of this firm is his son Mr. Mohammed salim. it is into this industry This firm produces spices under its own brand name called “ Rose brand” & “Mahal brand” It is a proprietary firm. Initially it supplied all spices and allied products to hotels, canteens in Mumbai. But late in 1990’s it extended its market to retail shops, government canteen, and also to other states too. Present proprietor took this initiative.
As a part of a history the firm’s sales had gone down due to a manpower problem nearly for a two years. But now it has faithful employees working in this firm. Earlier the firm was managed the family members but later it was changed to a single proprietary firm. It’s not only into producing spices but also into dealer ship of certain well-branded products. it is been registered under the Bombay shops & establishments act.
Organization structure Proprietor Purchase & production Supervisor
Sales Supervisor
Sales representatives
Dispatch & delivery workers
Workers
There are around 22 employees working in the organization. As it is a proprietary organization the owner himself takes all the decisions from purchases of the product to pricing. The process of authority is like; the proprietor is the in charge of the sales & purchase supervisor. The supervisor’s reports to the proprietor regarding the daily proceedings. The supervisor is in charge of the sales & the purchases to be effected. the proprietor. As it is a spices producing company its quality has to be taken care off, so that there is daily inspection of the quality by
Production process
Raw material Purchasing
Cleaning &Roasting
Grinding
Packaging
All the raw material are purchased from Agricultural produce market committee & also from different states like andra pradesh, Tamil nadu etc. Initially before making the purchase the sample is been sent from the supplier of the goods. The owner goes through the quality & the order is placed. As the goods reach the company it is been verified with the sample. After verification it is been sent for cleaning. There are around four women working for cleaning the spices. After cleaning, certain products like meat masala, sambhar masala, chicken masala it needs a roasting of the formula of the spices. After the roasting is done it is sent for grinding. After the grinding is done it is been packaged in to different quantity starting from 5 kilograms pack to 50 grams pack. The packaging for 5 KG
to 3 KG is done in plastic coated bags & for 1 Kg to 50 grams is done in a corrugated boxes and polythene bags. There are around 50 items, which are been processed, so for each and every product the materials differ from each product. For e.g., certain products like Chilly powder, turmeric powder & coriander powder doesn’t need processes like roasting & mixing. The formula for producing products like rasam powder, vegetable masala, meat masala each is different from each other. So the production processes also varies from one another. The cost of production also differs from each other items & also from the market rate fluctuations. There has to be a great care to be taken because many of the items raw materials are similar to the other. the grinding part is been outsourced to mills working in Vashi. Investment Sales and profitability • The yearly turnover of this company is 45-50 lakhs. There is no fixed income or sales because there is the cutthroat competition in this industry. • The profit margin for each product is around 12 to 20%. It varies from each of the product. • The investment is between 5 to 8 lakhs. The prices of the raw material keeps on varying, hence there is no fixed profit for each of the product. The prices fluctuate on the demand and supply of the market. Hence there is no fixed profitability.
Problems Areas • This industry is not a much-organized sector. • Due to competition from big players like Everest Masala, badhshah masala, it is facing tough to sustain the competition. • Employees are not trust worthy. • Lack of space, due to which expansion is difficult. • Lack of advertising for the products. • Lack of affordability to employ skilled workers. • There is huge amount of credits given to the dealers & customers, where recovery also becomes difficult. • Higher cost of production.
Recommendations and conclusion
The Small Scale Industry today constitutes a very important segment of the Indian economy. Small Scale Sector has emerged as a dynamic and vibrant sector of the economy. To be a strong player in the food processing industry, the following suggestions should be implemented;• As the company is in food processing industries it should register itself with the small-scale industries. i.e., the directorate of industries. So that it ca claim incentives & tax benefits. • After registering itself, the company can apply for finance, so that it can lower it production cost. • With the finance availed it can introduce new machinery so that it can lower its manpower. • Should also explore the international market. When the performance of this sector is viewed against the growth in the other industry sector as a whole, it instills confidence in the resilience of the smallscale sector. Small industry sector has performed exceedingly well and enabled our country to achieve a wide measure of industrial growth and diversification.
doc_795396368.doc