“ROLE OF SMALL SCALE INDUSTRIES

IN DEVELOPING NATION”

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INTRODUCTION

In the year 2003, I. K. Interior is a globally recognized name as a manufacturer and exporter of a

versatile range of furniture that are used in various domestic and commercial sectors. We are briskly

marching ahead in the global arena by our wide-spreading collection of plastic, wooden, metal and other

types of furniture. Along with that we have also executed some turnkey interior designing projects for

some top notch names of the industry.

We have achieved a desirable position in the industry, owing to the competent

management and futuristic approach of our mentor, Mr. Yunus Khan. It is because of his sincere efforts,

that we have been authorized with an enormous power supply of 50 H.P. Leveraging on our world class

designing and fabrication amenities, we are able to craft a complete line of sturdy and highly compatible

products.

Our view

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Our creative designers and imaginative craftsmen make use of our resources and create an inimitable

range of universally appealing products that suits the aesthetic tastes of variegated sections of our

society. We have wide-spread distribution network that enables us to meet the bulk demands of our

customers in a short span of time, despite of being geographically apart.

Application Areas

Our company is widely acknowledged for its attention-grabbing and durable range of furniture items.

Our innovatively designed and customized furniture range rae use din diverse applications like:

• Hospitals

• Educational Institutions

• Offices

• Corporate Houses

• Hospitality sector

• Household sector

Products

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We are a renowned for our diversified range of furniture that is used in diverse commercial and house-

hold purposes all over the world. The basic material used for crafting this furniture is plastic, metal,

wooden and others. For metal furniture we generally use CRCA sheet, mild steel, angle, flat pipe, paint,

hardware and other allied material that are mostly purchased from Mumbai and Indore apart form other

regions.

Our furniture range can be broadly classified as Wood Furniture, Metal Furniture, Handcrafted Wood

Furniture, Hospital Furniture, Educational Furniture, Office Furniture, Display Furniture, Tractor Trolley

Panel, Slotted Angels, Racks, Modular and Steel Furniture, False Ceiling and many more.

Some of the remarkable features of our furniture rage include:

• Durable

• Long-lasting

• Stylish and fashionable

• Available in conventional as well as ultramodern designs

Customization

We cater to the furniture requirements of different sectors. So, we also offer our clients the freedom to

request for customized furniture to suit their requirements in best possible manner. Our professionals

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listen to the requirements and preferences of our clients and design the most appropriate products for

them. After getting the approval of design from our client’s side, we make judicious utilization of our

resources to fabricate furniture in exact specifications as provided by the clients. We customize our

furniture range in terms of sizes, sittings, paint, finishing, material, design, and other alterable

specifications. This facility has earned great appreciation from our client’s side, as it gives them the

furniture that is their most worthy possession.

Manufacturing Facilities

We boast of a robust manufacturing facility that has all the amenities that are required for efficient and

faster production of our products. Our huge factory is located in a plot area of 20300 sq feet, in which we

have used a space of 9700 sq feet to build our industrial unit. We use latest and technically advanced

machines that enable us to achieve a huge production capacity of 5000 units. This results in executing

faster order processing and placement of our clients.

Some of the machines installed at our unit are:

• Shearing machine

• Press break machine

• Tower press

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• Power press

• Lathe machine

• Fly press break

• Folding press

• Trunk folding machine

• Spot welding

• Welding machine

• Gas welding machine

• Co2 welding machine

• Organ welding machine

• Powder coating machine

• Compressor unit

• Gas oven

• Hand drill machine

• Fly press

• Hydraulic pipe bending

• Manual pipe bending

• Cut of machine

• Bench grinder

• Three tanks de-rusting treatment

In addition to these machines, we have a full-fledged powder coating unit to provide superb finishing to

the furniture, thereby ensuring longer functioning life and classy appearance. Our powder coating unit

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uses Mitsuba system using Japanese technology; electric and gas oven of size 12"x 7"x 4.5' ft; powder

coating booth of size TX 4"x 6' ft; Air compressor unit 5 hp offers on line working and other facilities.

We also provide phosphate and clearing treatment on seven tank procedures. Our in-house designing unit

is equipped with latest design software to create innovative product range. Our manufacturing and

designing facilities are backed by our technical experts, artisans, designers and other professionals.

Team

Our workforce is an intrinsic aspect of our company and without them it would be impossible to execute

any task. They play an extra ordinary role in our success and it is because of them that we have achieved

a highly respectable position in a small period of time. Professionals belonging to different fields

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together make our team, who work in harmony to create inimitable range of stylishly crafted furniture.

Our team members comprises of designers, craftsmen, quality auditors, administrators, sale & marketing

personnel, technical experts and other personnel. Our professionals efficiently execute their duties and

ensure uninterrupted supply of products. They also assist our clients in availing custom designed

furniture.

Quality

Quality is the key to our success and we strictly adhere to it during the execution of all our activities. We

ensure that the material used to craft furniture is of high grade and are subjected to stringent quality

checks, prior to their usage. Our commitment to provide durable and comfortable range of furniture

makes us to cautiously test and inspect all products at different production stages. We employ latest

techniques to ascertain that our products meet international standard of quality. Several parameters on

which our products are checked are:

• Durability

• Finishing

• Material

• Preciseness in dimensions and designs

• Wood Polishing

• Powder coating

• Sturdiness

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• Inspection for risky edges and paint

Our careful vigilance and uncompromising approach towards quality compliance has enabled us to offer

qualitative and cost effective range of furniture.

Clients

Our company caters to the requirements of a wide-spread clients belonging to different sectors and

countries. We specialize in providing furniture for our clients ranging from hospitals, corporate houses,

industries, educational institutes and other sectors. Our products are also availed by shopkeepers,

restaurateurs, and various government and private offices. Some of our highly valuable clients are:

Customers hailing from educational sectors

• Pravara Educational Trust

• Shri Shivaji Madhyavartt Sahakari Grahak Bhandar Ahmadnagar

• Chate School

• D.k.m.m. Homeopathic College

• Bhagwan Homeopathic College

• SRMS College Of Education

• Sant Sadguru Horticulture College And Primary School

• Bareilly Public School

• Rajshri Shau Vidyalay And D.Ed College

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• Rashtriya Charitable Trust

• Uttamrao Patil Nursing College

• Md. Ali Johar D.Ed College

• New Azeem D.Ed College

Handcrafted Furniture

Empowered by our full fledged designing and manufacturing facilities, we are able to create an

incomparable range of furniture that are crafted from different material like plastic, metal, wood and

many more. Our furniture is used in several sectors for furnishing purposes and is helpful in providing

them a distinct class along with comfort ability and functionality. Our all-embracing range of furniture

includes:

School Furniture

We offer school furniture, which are manufactured from quality wood & steel materials. This education

furniture are perfectly designed to provide sitting arrangements in the classroom. Constructed with a

view to provide good sitting postures to the students, thus making them comfortable for sitting. These are

available at most competitive prices.

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Hostel Furniture

Our company also offers hostel furniture, which are perfectly designed to provide best comfort level to

the children at hostel. These are manufactured from quality wood & steel thus making them durable in

the long run. They have sufficient shelves for keeping the utilities. The side stairs are also well set to

provide convenient to children while climbing to the upper bed. These are available at most reasonable

prices.

Industrial Furniture

Our company offers industrial furniture for the usage in industries. These are designed to provide more

space and the materials can be stored well without any fear of damage. Our ranges of industrial furniture

are manufactured from qualitative raw materials. These are available at most competitive prices.

Library Furniture

Our library furniture is manufactured from qualitative raw materials, thus providing complete storage

solutions to library. These furnitures have many shelves, thus providing more space for keeping books.

These are designed perfectly to occupy less space. This furniture is available at most competitive prices.

ICU Equipment

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We offer ICU equipment, which is widely used in the hospitals and thus providing comfort to the

patients. These are manufactured from top grade raw materials to provide durability & long service life.

Our ranges of ICU equipment are available at most competitive prices.

Supplementary Equipment

We offer supplement equipment, which are manufactured from qualitative raw materials, thus providing

complete storage solutions. This equipment is used for storing many things at a time. The wheels in the

legs are helpful in carrying things from one place to another. These are available at most competitive

prices.

Ward Equipment

Our company is engaged in the manufacturing of ward equipment, which is manufactured from

qualitative range of raw materials, thus providing them long service life. Its wheels are also

manufactured from top grade rubber to give them more durability. The equipment is perfectly designed

to provide comfort to the patients.

Dual Desk

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We are engaged in the manufacturing of dual desk, which are manufactured from quality wood & steel

materials. This furniture is perfectly designed to provide sitting arrangements in the classroom. These

dual desks are very comfortable in sitting and thus prevent from any backache. These are available at

most competitive prices.

Television Stand

Our company is engaged in the manufacturing of T.V. stand is perfectly designed to give complete

support to the television. These are manufactured from qualitative raw materials thus, providing they

long service life. Our range of T.V. Stand is available at most reasonable prices.

Slotted Angle Storage

Our company offers a wide range of slotted angle storage, which is manufactured from top quality metal

sheets, thus providing storage solutions. These storage stands can be used in departmental stores, shops

and other industrial usages. Our ranges of slotted angle storage are available at most competitive prices.

Cable Tray

We offer cable tray, which is known for its high performance & cost-effective. Manufactured from

qualitative range of raw materials, our range of cable tray provides solutions to different industries.

These are available at most competitive prices.

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Stretcher With Trolley

Our company is engaged in the manufacturing of stretcher with trolley, which provides numerous

solutions to hospitals. These are manufactured from qualitative range of raw materials so as to give them

long service life. The trolley attached with the stretcher is very beneficial for moving the stretcher from

one place to another. Our ranges of slotted angle storage are available at most competitive prices.

AVAILABLE ULTRA MODERN MACHINERIES

AmbikaMake - 2500 mm X 4 mm thick under crank Shareing Machine

Acme Make-30 Tonne Power Press

Digvijay Make -10 Tonne Power Press

90 Folding Machine-8'

Rajesh Make - Hand Operated Folding Machine - 5'

Press Brake Screw Type Machine

Drilling Machine - 15 mm

Cut-offMachine-12"

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Welding Machine-4 Nos.

Spot Welding Machine -15 Kv

Bench Grinder

Parkin Make - 5 HP. Heavy Duty Compressor Machine

POWDER COATING UNIT

Mitsushita, Japan makes System Powder Coating Unit

Electric & Gas Oven- Size 12' X7'X4.5I

Powder Coating Booth-7'x4'x 6'

Air Compressor Unit - 5 HP offers on line working

Also offering Phosphating & Clearing treatment on three tank & 7 time procedures.

RAW MATERIAL AND THEIR SOURCES

Major Raw Material is SRC A Sheet, MS Angle, Flat Pipe, and Paint & Hardware.

Company prefers vendors of Mumbai & Indore to purchase above mentioned material. The vendors are

also ensuring the Value for money and time to procure the same on time to avoid late delivery.

Besides that Company is purchasing Paints from local market, since the customer is king of market and

Company is providing what is, how is, required by customer. To avoid major inventory & shade

difference it is necessary to purchase Paints from local market.

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OBJECTIVES OF THE PROJECT

1. To know details of Small Scale industries

2. To know details of Metro Metal Industries.

3. To study Market Research detail.

4. Effective Advertisement towards Sales management.

5. Customer Survey and its Findings.

6. Performance and progress of Furniture

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MARKETING RESEARCH

Marketing research plays an important role in the process of marketing. Starting with the market

component of total marketing talks. It helps the firm to acquire a better understanding of the consumers, the

competition and the marketing environment.

DEFINITION

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“Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate

decision making.”

- Coundiff & Still.

“Marketing research is a systematic problem analysis, model building and fact finding for the purpose of

important decision making and control in the marketing of goods and services.

- Phillip Kotler.

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market research problem involved in the

task.

(1) Define the problem and its objectives.

(2) Identify the problem.

(3) Determine the information needed.

(4) Determine the sources of information.

(5) Decide research methods.

(6) Tabulate, Analyze and interpret the data.

(7) Prepare research report.

(8) Follow-up the study.

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(1) Define the problem and its objectives : - This includes an effective job in planning and

designing a research project that will provide the needed information. It also includes the

establishment of a general framework of major marketing elements such as the industry

elements, competitive elements, marketing elements and company elements.

(2) Identify the problem : - Identifying the problem involves getting acquainted with the company,

its business, its products and market environment, advertising by means of library consultation

and extensive interviewing of company’s officials.

(3) Determining the specific Information needed :- In general the producer, the manufacturer, the

wholesaler and the retailer try to find out four things namely :-

(1) What to sell

(2) When to sell

(3) Where to sell

(4) How to sell

(4) Determine the sources of information:-

(a) Primary Data: - Primary data are those which are gathered specially for the

project at hand, directly – e.g. through questionnaires & interviews. Primary

data sources include company salesman, middleman, consumers, buyers, trade

association’s executives & other businessman & even competitors.

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(b) Secondary Data: - These are generally published sources, which have been

collected originally for some other purpose. Source are internal company

records, government publication, reports & publication, reports & journals,

trade, professional and business associations publications & reports.

(4) Decide Research methods for collecting data :- If it is

Found that the secondary data cannot be of much use, collection of

Primary data become necessary. Three widely used methods of

gathering primary data are

A) Survey

B) Observation

C) Experimentation

A) Survey Method: - In this method, information gathered directly from individual respondents,

either through personal interviews or through mail questionnaires or telephone interviews.

B) Observation Method: - The research data are gathered through observing and recording their

actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique.

C) Experimental Method: - This method involves carrying out a small scale trial solution to a

problem, while at the same time, attempting to control all factors relevant to the problem. The main

assumption here is that the test conditions are essentially the same as those that will be encountered later

when conclusions derived from the experiment are applied to a broader marketing area.

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D) The Panel Research: - In this technique the same group of respondents is contacted for more

then one occasion; and the information obtained to find out if there has been any in their taste demand or

they want any special quality, color, size, packing in the product.

a) Preparation of questionnaire

b) Presetting of questionnaire

c) Planning of the sample

(5) Tabulate, Analysis and Interpret the Data :-

The report must give/contain the following information:-

a) The title of research

b) The name of the organization for which it has been

Conducted

c) The objectives of research

d) The methodology used

e) Organization and the planning of the report

f)A table of contents along with charts and diagrams used in the reports

g) The main report containing the findings

h) Conclusion arrived at end recommendations suggested

i) Appendices (containing questionnaire / forms used sample design, instructions.)

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(6) Follow-up the study: - The researchers, in the last stage, should follow up this study to find if his

recommendation are being implemented and if not, why

RESEARCH DESIGN

“Advertising is a paid form of non-personal presentation and promotion of ideas, goods or

services by an identified sponsor.”

1. RESEARCH PROBLEM

Increase the awareness level of Metro Metal Industries

Seek the general perception of consumer towards Metro Metal Industries

To find the performance of Metro Metal Industries vis-à-vis other Brands.

To know the consumer psyche and their behavior towards Metro Metal Industries

2. Research Objectives & related sub objectives

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To know the relationship of sales with the advertisement.

To know awareness of people towards Metro Metal Industries

To know in which segment furniture are mostly like/preferred.

To know which advertisement tool is mostly preferred by people.

To know the preference of Metro Metal Industries with comparison to other competitive brands.

To know the factors which affects consumer’s buying behavior

to purchase Furniture

3. Information requirement

First, I had to know about all the competitors present in the furniture

Segment (Reputed and well established brands as well as Local brands).

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Before going for the survey I had to know the comparative stile and

Prices of all the competitors existing in the market.

As furniture is different product, the main information needed is the various types of furniture’s

available in the market, their calorific value and various other stile. They can be termed as :

As Metro metal advertisements are mainly done through hoardings but on News pepar the

advertisement

METRO METAL PRODUCT is made from Steel, Wood, MDF wood,

4. Choice of research design – alternatives & choice

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful to classify

marketing research on the basis of the fundamental objectives of the research. Consideration of the

different types, their applicability, their strengths, and their weakness will help the student to select the

type best suited to a specific problem.

The two general types of research are:

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EXPLORATORY RESEARCH

Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.

Marketing researches devote a significant portion of their work on exploratory studies when very little is

known about the problem being examined.

CONCLUSIVE RESEARCH

Conclusive studies attempts to determine the frequency with which something occurs or the relationship

between two phenomenons. Usually conclusive studies assume certain under underlying characteristics of

the market or have some precise statement of research questions/hypothesis.

5. RESEARCH INSTRUMENT USED - DETAILS & WHY?

If one wants to know what type of dentifrice people use, what they think of, television commercials, or

why they buy particular brands of cars, the natural procedure is to ask them. Thus, the questionnaire

method has come to be the more widely used of the two data collection method. Many consumers are now

familiar with the telephone caller who greets them with “We are making a survey”, and then proceeds to

ask a series of questions. Some interviews are conducted in person, others by telephone, and others by

mail. Each of these has its special advantages and disadvantages and limitations. The questionnaire

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method in general, however, has a number of pervasive advantages and disadvantages. Discussion of

particular variations will be more meaningful if these characteristics of the general methods are brought

out first.

A questionnaire consists of list of questions to be asked from the respondents and the space provided to

record the answer / responses. Questionnaire can be used for the personal interviews, focus groups, mails

and telephonic interviews. The choice among these alternatives is largely determined by the type of

information to be obtained and by the type of respondents from whom it is to be obtained.

The common factor in all varieties of the questionnaire method is this reliance on verbal responses to

question, written or oral.

Questionnaire in the project consists of:

Multiple choice questions

Dicthomus

Multiple Choice Questions:

Questions of this type offer the respondents an alternative to choose the right answer among others. It is

faster, time saving and less biased. It also simplifies the tabulating process.

OPEN END QUESTIONS:

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In this type respondents are free to answer in their own words and express the ideas they think are

relevant, such questions are good as first questions or opening questions. They introduce the subject and

obtain general reaction.

DICTHOMUS:

These are the questions which are Boolean in nature. These answers are straightforward and respondents

have to answer them in a straight way. That means the answer can only be either ‘Yes” or ‘No’.

6. SAMPLING TECHNIQUE USED & SAMPLE SIZE - WHY?

Sample design is a definite plan of obtaining some items from the whole population. The sample design

used in this project is two state sampling i.e. Cluster and convenience. In the probability sampling

methods, each items in the sample is chosen one at a time from a complete list of universe elements. In

marketing research practice, it will sometimes be more expedient to select clusters or groups of universe

elements, rather than to choose sample items individually.

Sampling methods in which universe elements are chosen in groups ---- rather than individually -- are

called cluster-sampling methods. They are widely used in the sampling of human populations. When no

complete universe listing exists, a type of sampling is called area sampling may be the only practically

feasible form of probability sampling.

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NONDISGUISED, STRUCTURED TECHNIQUES

The non structured techniques for attitude measurement are primarily of value in exploratory studies,

where the researcher is looking for the salient attributes of given products and the important factors

surrounding purchase decisions as seen by the consumer. Structured techniques can provide a more

objective measurement system, one which is more comparable to a scale or a yardstick. The term scaling

has been applied to the efforts to measure attitudes objectively, and a number of useful scales have been

developed.

SAMPLING METHODS

Sample design is a definite plan of obtaining some items from the whole population. The sample design

used in this project is two state sampling i.e. cluster sampling and convenience sampling. The whole city

was divided into some geographical areas and I have chosen Memnagar, Ashram road, Sattelite, Bopal,

Bodekdev, Vastrapur, Navrangpura, Usmanpura, Maninagar and Narayanpura. The total sample size was

200.

CLUSTER SAMPLING

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Here the whole area is divided into some geographical area and a definite number of consumers were to be

surveyed.

CONVINIENCE SAMPLING

This type of sampling is chosen purely on the basis of convenience and according to convenience.I visited

Education Institute, Hospital, Offices, Industries, Choching classes, Superstores, Theatres.

SAMPLING

1. Sampling Technique : Non probability sampling

(A non probability sampling technique is

That in which each element in the

Population does not have an equal

Chance of getting selected)

2. Sample Unit : People who buy furniture available

In retail outlets, Company showrooms etc

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3. Method : Direct interview through questionnaire.

4. Data analysis method : Graphical method.

6. Area of survey : Bareilly District.

FIELD WORK- METHOD USED FOR DATA COLLECTION

Questionnaire was prepared keeping the objective of research in mind.

Questions were asked to respondents as regards to there willingness to purchase furniture.

The help of questionnaires conducted direct interviews, in order to get accurate information.

In order to get correct information I had to approach consumers ranging from costumer

requirement.

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I visited as many respondents as I can and asked them their real likings about any furniture and

also got an idea, How a Furniture should be?

It is really a Herculean task to understand Consumer Behavior, as the definition suggest,

“Consumer behavior is a physical activity as well as decision process individual engaged in when

evaluating, acquiring, using and disposing goods and services”.

In order to collect accurate information I visited to Education Institute, Hospital, Offices,

Industries, Coaching classes, Superstores, Theatres.

Each and every question was filled personally by the respondents and checked properly.

People were not willing to answer, when they were contacted between 1.00 pm to 5.00 pm, the

time when most of the people take rest during the scorching heat.

“Advertising is a paid form of non-personal presentation and promotion of ideas, goods or services by an

identified sponsor.”

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SMALL SCALE INDUSTRY

INTRODUCTION

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The definition for small-scale industrial undertakings has changed over time. Initially they 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. However the capital resources invested

on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries

from the large and medium scale industries. 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.

As per the latest definition which is effective since December 21, 1999, for any industrial unit to

be regarded as Small Scale Industrial unit the following condition is to be satisfied: -

Investment in fixed assets like plants and equipments either held on ownership terms on lease or

on hire purchase should not be more than Rs 10 million.

However the unit in no way can be owned or controlled or ancillary of any other industrial unit.

The traditional small-scale industries clearly differ from their modern counterparts in many

respects. The traditional units are highly labor consuming with their age-old machineries and conventional

techniques of production resulting in poor productivity rate whereas the modern small-scale units are

much more productive with less manpower and more sophisticated equipments.

Khadi and handloom, sericulture, handicrafts, village industries, coir, Bell metal are some of the

traditional small-scale industries in India. The modern small industries offer a wide range of products

starting from simple items like hosiery products, garments, leather products, fishing hook etc to more

sophisticated items like television sets, electronics control system, various engineering products especially

as ancillaries to large industrial undertakings.

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Nowadays Indian small-scale industries (SSIs) are mostly modern small-scale industries.

Modernization has widened the list of products offered by this industry. The items manufactured in

modern Small-scale service & Business enterprises in India now include rubber products, plastic products,

chemical products, glass and ceramics, mechanical engineering items, hardware, electrical items, transport

equipment, electronic components and equipments, automobile parts, bicycle parts, instruments, sports

goods, stationery items and clocks and watches.

HISTORY OF SMALL SCALE INDUSTRY

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Ministry of Agro and Land Rural Industries and Ministry of SSI have been merged into a single namely,

Ministry of Micro Small & Medium Enterprises.

The President under Notification 9th May 2007 has amended the Government of India

(Allocation of business) Rules 1961, Pursuant to this amended Ministry of Agro and rural

Industries (Krishi Evam Gramin Udyog Mantralay) and ministry of SSI (Laghu Udoyag Mantralay) have

been merged into a single Ministry, namely, Ministry of Micro Small & Medium Enterprises (Suksham

Laghu Aur Medium Udyam Mantralay).

CONCEPT & DEFINATION OF SSI

In most parts of the world the nomenclature used is small and Medium Enterprises (SMEs)

and the criteria for defining include the number of employees and /or the turnover. In India the Small

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Scale Industry evokes different meanings for different agencies and the financial institution. For example

for the purpose of excise and sales Tax Exemption, the turnover alone is the determining criterion.

However in broader terms, currently, an SSI is defined in terms of investment ceiling on the original value

of instilled plant and machinery.

7.65 The small scale sector has played a very important role in the socio-economic development of

the country during the past 50 years. It has significantly contributed to the overall growth in terms of the

Gross Domestic Product (GDP), employment generation and exports. The performance of the small scale

sector, therefore, has a direct impact on the growth of the overall economy. The performance of the small

scale sector in terms of parameters like number of units (both registered and unregistered), production,

employment and exports is given in Table 7.15. 7.66 During the one year period i.e., 2000-01

Over 1999-2000, the number of SSI units is estimated to have increased by 1,58,000, production at

current prices by Rs. 72,609 crore and at constant prices by Rs. 33,714 crore. Employment increased by

7,14,000 persons, while exports were higher by Rs. 5,778 crores. 7.67 According to projections made by

the Ministry of Small Scale Industries during 2000-01, the SSI sector recorded growth in production of

8.09 per cent over the previous year. The small scale industries sector has recorded higher growth rate

than the industrial sector as a whole (4.9 per cent during 2000-01). It contributed about 40 per cent

towards the industrial production as a whole and 35 per cent of direct exports from the country. 7.68 The

Government has been taking various measures from time to time in order to enhance

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The productivity, efficiency and competitiveness of the SSI sector. In pursuance of the

comprehensive policy package announced last year, the major developments that have taken place in the

SSI sector during 2001-02

THE SMALL SCALE INDUSTRIAL UNDERTAKING

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An industrial undertaking in which the investment in plant and machinery, whether

held on ownership terms or on lease/hire-purchase basis, does not exceed Rs.10 million (Rs.1 crore) is

regarded as a small scale undertaking. These include manufacturing and service units.

Status of Small Scale Industries Undertaking

a) Ancillary Industries Undertaking :- Engaged in manufacture of parts, component

Sub-assemblies, The investment in fixed assets doesn’t exceed 1 crore.

b) Tiny Industries :- All small scale units, which investment on plant & machinery

(excluding land & building) up to Rs.25 Lakhs.

c) Export Oriented Units: - All small scale units, which export more than 50% of

Their output.

Tiny Enterprises

A unit is treated as a tiny enterprises where investment in plant and machinery does not exceed

Rs.2.5 million (Rs.25 Lakhs) irrespective of the location of the unit. Many shops,

Export Oriented Unit [Eou]

A unit with an obligation to export at least 30 percent of its annual production by the end

of the third year of commencement of production and having an investment ceiling up to Rs.10 million

(Rs.1 crore) in plant and machinery is termed as an export oriented SSI unit.

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In India no separate definition of medium enterprises exists and as such there is no specific definition of

Small and Medium Enterprises [SMEs.] Administratively, in the Indian context, the industry universe is

divided into three major segments.

Modern Small Scale Industries

These cover SSI units [both in the factory and Non /Factory sectors] and power loom units. Such

units mostly use power driven machinery and possess superior production techniques. Units in this sub-

sector are generally located in close proximity to large industrial centers or urban areas. These industries

are moving away from the traditional products to knowledge-based products.

Traditional Small Scale Industries

This sector comprises tiny and cottage industry segments like handlooms, Khadi and Village Industries,

handicrafts, sericulture and silk, rubber and coir. These units are labor- intensive, are generally located in

rural and semi-urban areas and are artisan based. Usually the capital invested is also nominal.

How a person can start a small scale industries in Indian Scenario.

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1. For starting a Small Scale Industry other than the industries identified as those of highly polluting

nature by Pond cherry Pollution Control Committee (PPCC), entrepreneurs have to first apply to the

Directorate of Industries and Commerce, Pond cherry, Branch office at Karaikal, Sub-office at Mahe and

Yanam, depending on the location of the unit for Provisional SSI Registration in the form prescribed. In

case of industries identified as those of highly polluting nature by PPCC, entrepreneurs will have to first

get clearances from the Pondicherry Pollution Control Committee through the Directorate of Industries

and Commerce and then approach for provisional SSI registration after its clearance.

2. All proposals for setting up of H.T. Industries will be referred to the Electricity Department for

getting initial advice regarding the availability of power for the unit. In the case of such industries

provisional registration / NOC will not be issued unless the initial advice is received from the Electricity

Department.

3. All the entrepreneurs irrespective of their size of investment, may approach the `Single Window

Committee` (Functioning in the District Industries Centre) for getting the requisite clearances

expeditiously. 

4. The regional office of the District Industries Centre will make available to the entrepreneurs/

Industrialists, the prescribed application forms for obtaining clearances/ permissions from the following

Departments   (Photocopies and computerized forms in the format required by the concerned Department

will also be accepted): -

(a) Municipality /Commune Panchayat, in whose jurisdiction the industry is proposed to be set up.

(b)  Chief Inspector of Factories;

40

(c)   Town and Country Planning Department;

(d)    Revenue Department;

(e)   Agriculture department; and

(f)   Electricity Department.

5.  Duly filled in application forms in prescribed format along with required copies of the site, building &

machinery layout plans and other relevant documents shall be submitted to the District Industries Centre

or its regional office for obtaining Clearances / Permissions from the various Departments. The District

Industries Centre or its regional office on receipt of the applications will forward the same to

the concerned Department within three days of the receipt of the applications.

6. After installing machinery. Entrepreneurs have to get licenses from the concerned Municipality/

Commune Panchayat, License from Inspectorate of Factories and consent orders from the PPCC for

operation of the unit.

7.  After commencement of regular production, the entrepreneurs have to apply for Permanent SSI

Registration to the Directorate of Industries and Commerce..

II Procedure for obtaining change in location, inclusion of additional activities in case of Small Scale

Industries.

Before commencement of production:- In case of Small Scale Industries the industrial unit has to submit a

41

requisition letter to this effect along with the original certificate to the Directorate of Industries and

Commerce/ branch office at Karaikal/ Sub- office at Mahe and Yanam, depending on the location of the

unit. Then the changes have to be effected in the Permissions/NOC issued by Municipality / Commune

Panchayat, Inspector of Factories and PPCC.

2. After commencement of production:- Initially the unit has to obtain NOC from the Directorate of

Industries and Commerce to this effect and amendment in the Permanent Registration Certificate. These

changes have to be effected in the licenses issued by Municipality / Commune Panchayat, Inspector of

Factories and PPCC.After obtaining those changes, Industries Department will make

INSTITUTE OF SKILLS DEVELOPMENT & TRAINING OF SSI

National Entrepreneurship Development Institute

National Institute for Entrepreneurship and Small Business Development

(NIESBD) Noida.

National Institute of Micro Small and Medium Entrepreneur (NIMSME)

Hyderabad.

Formally National Institute of Small Industry Extension Training (NISIEI)

42

Indian Institute of Entrepreneurship (IIE) Guwahati.

Others

MSME Development Institute

Tools Rooms

Central Footwear Training Center- Agra & Chennai

.

Fragrance and Flower Development Center- Kannauj

.

Procer-Cum Product Development center- Agra

.

Electronics service & Training Center- Ram Nagar.

Institute for Design Electrical Measumg Instrument- Mumbai.

NEED OF FINANCE IN SSI

For running business finance is necessary. Owners of SSI need finance for fixed assets installation

to start

43

business & working capital for keep the running condition.

Financial requirements of small scale industries can be classified into two heads:

Equity Capital: - This is the investment by the owner of the small unit for setting

Up a unit. At the time of establishing business it is very much required that the

Owner contributes his own capital & then he collects funds from loan. it is preferable

To purchase all fixed assets from owner funds as the chances of success as high in

That case. On the other hand depending upon interest beariy to outsiders loan acur-

ring fixed assets result to maximum payment to outsiders in from of interest and

Very less amount left for entrepreneur as profit.

Loan Capital: - In real condition entrepreneur doesn’t have adequate funds for Sting in

The units, so the owner requires long term and short loan. Long term loans

For purchase of fixed assets and short term loan for making day to day expenses. A

Financial structure will be that whatere more investments are from own (equity)

Capital. But as the loan from outsider also important so the amount of outsider fund

Should be less than or equal to owners fund.

FINANCING OF SSI

44

`Government has recognized the important role of entrepreneurs in the industrial development of

the economy, especially through the small-scale industries (SSIs). SSI is essential for Indian economy in

terms of employment generation, foreign exchange earnings, and its share in industrial output, and

contribution to national income. The government of India and state governments provides a number of

special facilities and incentives.

The incentives not only motivate entrepreneurs to set up industries in the small-scale sector, but

also strengthen the entrepreneur’s base in the economy. Of all the elements that go into a business, credit

is the perhaps the most crucial. the best plans can come to naught if adequate finance is not available at

right time. SSIs need credit support not only for running the enterprise & operational requirements but

also for diversification, modernization / up gradation of facilities, capacity expansion etc. In respect of

SSIs, the problem of credit becomes all the more critical whenever any episodic event occurs such as a

large order, rejection of consignment, inordinate delay in payment etc. In general, SSIs operate on tight

budgets, often financed through owner’s own contribution, loans from friends and relatives and some

bank credit.

Government of India recognized the need for a focused credit policy for SSI in the early days of

promotion of SSIs and RBI has been instrumental in devising a multi-stage approach / financial system

for credit dispensation to different sectors of the economy, for example, agriculture, industry, exports,

SSIs etc. This section focuses on the role of SIDBI, SFCs and commercial banks in granting credit to

small scale and tiny sector.

45

FINANCIAL INSTITUTION WHICH SUPPORTS DEVELOPING OF SSI

1 National Small Industries Corporation (NSIC)

Set up in 1955 to promote S.S.I.

Corporate Term Loan Scheme to acquire land & building & working capital.

Hire-Purchase Scheme to supply of indigenous & imported machinery & equipment.

Equipment Leasing to expand these capacities or diversify or upgrade their technology.

Working Capital Finance.

Bill Financing

Bills drawn by small scale units for the supplies made to the reputed and well established

Enterprises and duly accepted by them will be financed / discounted by NSIC for a maximum period of 90

days.

Working Capital Finance

Finance for augmenting working capital of viable and well managed units, on selective basis in

case of emergent requirements, to enable them to payoff their purchases of consumable stores and spares

and production related overheads particularly electricity bills, statutory dues, etc.

46

Export Development Finance

Finance for export development to export oriented units for meeting their emergent requirements.

Pre and post shipment finance shall also be provided to such units at usual terms & conditions.

Equipment Leasing Scheme

The object of the Leasing Scheme is to assist SSI Units to procure industrial equipment for

modernization, expansion and diversification of their industries.

Hire Purchase Scheme

Supply of indigenous and imported machinery and equipment on easy financial terms with special

focus on women entrepreneurs, weaker sections, handicapped and ex-servicemen and SC/ST

entrepreneurs

BENEFITS

100% financing at very liberal terms with easy repayment schedule.

Simple formalities and speedy sanction.

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Single window system for imported equipment. The Corporation undertakes to complete formalities like

procuring import license, opening of Letter of Credit etc.

Tax rebate on full 5 year lease rental.

2 Small Industries Service Institute (SISI)

The scheme was launched on the auspicious day of 2nd October, 1993. the birth Anniversary of Mahatma

Gandhi all over the country the main objective of the PMRY scheme was to provide easy subsidized

financial assistance to educated unemployed youth for starting their own enterprises in manufacturing,

business and service and trade sectors initially the scheme was aimed at providing self-employment to one

million educated unemployed youth in the country by setting up 7 lakh micro enterses through inducting

service and business ventures over a period of 21/2 yers. The scheme was a stupendous success and

caught the imagination of the youth. Overwhelmed with the response and ever-increasing need, the

government has decided to mark it a permanent scheme and framed modalities and guidelines for its

successful implementation and fulfil the purpose for which it designed.

Salient Features of PMRY Scheme

This is centrall sponsored scheme

The development commissioner (Small-Scale industries) under ministry of Small Scale and Rural

Agro, Industries Government of India is the apex body for this scheme.

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The respective commissioner/director of industries implements the scheme at the state level except

the four metropolitan cities, with an overall monitoring by the concerned Secretaries of industries.

The implementation agencies at the grass root level are District Industries Centre (DIC) who

would be instrumental for the grounding of the units.

Small Industries Service Institute (SISI) located in the four Metropolitan cities of Delhi, Kolkata,

Mumbai and Chennai are the implementing agencies of this scheme.

The DCSSI has setup a special PMRY division in the headquarters under the able guidance of an

IAS officer. DCSSI formulates the rules, regulations and guideline instruction and provides

clarifications on all the matters pertaining to PMRY scheme. It has also devised complete feedback

information by the means of getting monthly, quarterly and annual progress reports from all the

states to closely monitor the implementation and progr ess of the scheme.

Similarly at the state level, State level PMRY committee meetings monitors the progress of the

scheme every quarter.

The yearly target for number of beneficiaries for each state is fixed by DCSSI.

3 NSIC

NSIC assist and promotes SSI sector through various schemes. A composite term lone scheme

assists existing and prospective entrepreneurs to acquire land and building, machinery, equipment and

working capital at one place. Machinery and equipment are provided through hire purchase and leasing on

49

easy financial terms and full financing. Working capital finance and off the shelf availability of scarce

materials are also provided. SSI units can get registered with NSCI to avail benefits of local /global tender

and also for Government Store Purchase Programme. NSIC also does bill discounting up to a specified

limit. The 5 NSIC Technical Service Centers and a number of extension centers provide technically

trained manpower testing facilities and prototype modification. The Technology Transfer Centre provides

on-line data on latest technology. The NSIC-STP complex provides packaged infrastructure facilities for

software export units to be set up in the complex NSIC also provides various marketing facilities (e.g.

exhibitions, BSM, etc.). It also operates an Indo-Italian Line of Credit for select sectors. NSIC is also

working out a programme for development of SSI sector in the North-Eastern Region. Once approved in

principle, NSIC will implement a scheme a Mentoring / Advisory services for SSI sector in select clusters.

Technocrats and successful firm owners will provide the service to SSI units on a payment basis, which

will be supported by the scheme NSIC has offices all over.

FINANCIAL INSTITUTIONS WHICH GIVES FINANACIAL SUPPORT TO SSI

1. Small Industries Development Bank Of India (SIDBI)

50

The SIDBI was established in 1990 as the apex refinance bank. The SIDBI is operating different

programmers and schemes through 5 Regional Office and 33 Branch Offices. The financial assistance of

SIDBI to small scale sector is canalized through the two routes- direct and indirect.

a). Indirect Assistance

a) SIDBI’s financial assistance to small sector is primarily canalized through the

Existing credit delivery system, which consists of state level institution, rural and

Commercial banks.

b) SIDBI provides refinance to and discounts bills of Primarily Lending Institution (PLI)

c) The Assistance is Available for

i. Marketing of SSI product.

ii. Setting up of new venture.

iii. Availability of working capital.

iv. Expansion.

v Modernization.

vi. Human Resource Development .

vii. Diversification Of existing units for all activities.

b). Direct Assistance

a) The loans are available for new ventures, diversification technology up gradation, modernization

and expansion of well run small scale enterprises. Assistance is also available for private sector.

51

b) Small scale sector is eligible for maximum debt-equity ratio of 3:1.

c) Foreign currency loan for import of equipment are also available to export oriented small scale

enterprises.

d) SIDBI also provide venture capital assistance to the entrepreneurs for their innovative ventures if

they have a sound management team, long term competitive advantages and a potential for above

average leading to attractive return on investment.

New Initiatives of SIDBI

a) Two Subsidiaries viz. SIDBI Venture Capital Limited and SIDBI Trustee company Limited

formed to oversee Venture Capital.

b) Technology Bureau for Small Enterprise formed to oversee Technology Transfer,

March making Service, Finance Syndication and facilitating Joint Ventures.

c) SIDBI Foundation for Micro Credit has been launched to provide financial assistance to the poor

to meet

emerging needs of the micro finance sector especially in the rural areas.

PERFORMANCE OF SIDBI

SIDBI's efforts have resulted in increased flow of credit to SSI sector since inception as indicated below:

52

Year Sanction Disbursement

1990-91 2410 1839

1991-92 2847 2028

1992-93 2909 2146

1993-94 3357 2672

1994-95 4706 3390

1995-96 6066 4801

1996-97 6485 4585

1997-98 7484 5241

2 Industrial Finance Corporation of India (IFCI)

IFCI was set up for the purpose of assisting the medium and long term projects for capital expenditure on

projects, expansion, and modernization and technological up gradation etc. it plays promotional and

developmental role, particularly in relation to the small and medium scale entrepreneurs.

Main function is providing:

Underwriting and guaranteeing facilities to the industrial concerns.

Term loan and foreign currency loans are through foreign credit lines from foreign banks and

cooperative societies engaged in

a. Manufacturing, preservation and processing of goods

b. Shipping

53

c. Mining

d. Hotel Industry

e. Electricity generation and distribution etc.

It concentrates mostly on medium and large scale projects .by an agreement with other Financial

Institution and IDBI; the IFC specializes in financing of certain industries like jute, cement, sugar etc.

3 Industrial Development Bank of India (IDBI)

IDBI Bank Limited. -

General Code of Conduct and Ethics (COCE) for IDBI Bank Ltd, Directors,

Officers and Employees

IDBI is the leader in the Indian Capital Market. It has both regulatory and development

functions. The role of IDBI in the market is to promote and develop industries as per the planned

projection of the Governmen that, to provide technical and assistance for the expansion and modernization

of the industry and for rediscount and refinance facilities to financial institution. IDBI as the leader in the

market coordinates guides and Monitors the credit facilities by all India and State level financial

institution and development corporations. It undertook the responsibility the promoting and financing the

small and cottage industries and also the import-export trade of the country until separate bodies namely

Exim Bank and Small Industries Development Bank of India (IDBI) were set up.

i. Textile Modernization Fund Scheme for the purpose of promoting modernization of

Jute and cotton textile industries.

54

ii. Venture capital Fund Scheme for developing new ventures and promoting risky

Ventures by new technicians and new entrepreneurs.

iii. Technology up gradation Scheme for the purpose of upgrading technology in

Selected capital goods industries.

iv. Energy conservation Scheme for the purpose of financing energy saving proposals

Of industries and.

v. Seed Capital Scheme for the purpose of providing initial seed capital in the form of promoters

contribution to new ventures. The IDBI operates direct assistance schemes whereby project appraisal

and financing for medium and large scale projects is undertaken. It provides refinancing under the

Industrial Loans Scheme for the loans extended by commercial and operators and units in the

backward areas etc.

IDBI also borrows abroad and secures funds under arrangements with foreign financial

institution, foreign banks and foreign governments and operates foreign lines of credit, secured by the

Government.

FUNCTIONS

NATIONAL INTREST

FINANCIAL REPORTING AND RECORDS

CARPORATE DISCLOSURE PARTIES

COMPETETION

EQUAL RIGHTS

55

PROHIBITED BUSINESS

CORPORATE OPPORTUNITY

ETHICAL STANDARDS

4 State Development of Corporation (SIDc)

Sources of Funds

Issue of bonds and debentures in the market, fixed deposits from the public, borrowings from RBI, IDBI,

state government etc. These bodies assist small scale industries, units in backward areas, new

entrepreneurs etc. Industrial Development Corporation, Industrial Investment corporation were set by

some states for promotion, infrastructural development, and financial, managerial and entrepreneurial

guidance to the industrialists, provision of industrial sheds/ plots for setting units up of small units etc.

5 Commercial Bank

In India, the banks are major sources of finance, are encouraged in several ways to extend export fianance,

to achive the objectives of foreign trade policy. Credit requirement of SSIs is basically of two types- Long

Term Loans and working Capital. Commercial banks with their extensive network of branches operating

nation wide are primary channels for working capital requirement.

Banks are required to compulsory ensure that defined percentage (currently 40%) of their overall lending

is made to priority sectors as classified by RBI. These sector their include agriculture, small industries,

export etc. The inclusion of small industries in this list makes them eligible for this earmarked credit. With

the liberalization of the Indian economy, greater emphasis was placed on meeting the credit needs of SSIs.

This was manifest through the following initiatives taken by RBI.

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a) Credit for tiny sector has been earmarked within overall lending to small industries. In order to

ensure that credit is available to all segments of SSI sectors RBI has issued instruction that out of

the funds normally available to SSI sector, 40% be given to units with investment inplant &

machinery up to Rs. 5 lakhs, 20% for units with investment between 5 lakhs to Rs. 25 lakhs and

remaining 40% for other units.

b) Public sector banks have been advised to operationalise more specialized SSI branches at centers

where there is a potential for financing many SSI borrowers. As on March 2002, 391 specialized

SSI branches are working in the country.

c) ‘Single Window Scheme’ was extend to all districts to meet the financial requirements (both term

loan & working capital) of SSIs.

d) Laghu Udyami Credit Card (LUCC) Scheme was launched by the public sector banks for

providing simplified & borrowed friendly Credit facilities to SSI, tiny enterprises retail traders &

artisans.

e) Composite loan limit was enhanced to Rs.50 lakhs from Rs.25 lacks.

6 Indigenous Bankers Or Money Lender

57

As the funds from bank required lot of paper work, security & has combusome procedure the small

entrepreneur have to borrow late of interest charged by money landers are high. The money lenders don’t

have specified interest rate, security condition and term of loan. It keeps on verify as per the goodwill of

borrower.

7 Public Deposits

Public deposit means collecting funds by general public by issuing public deposit certificate. The small

scale unit need not to keep any security against funds collected by public deposit, but rate of interest is

higher than the interest rate provide by commercial bank.

IDBI also borrows abroad and secures funds under arrangements with foreign financial institution, foreign

banks and foreign governments and operates foreign lines of credit, secured by the Government.

SSI’s AS CREATOR OF THE JOBS

58

Small Scale Industries (SSIs) have always been regarded for their high employment intensity.

SSIs today employ over 192 lakh persons and this is targeted to grow at 4% per annum during the 10th

Plan period of 2002-2007. Though often described as ideal vehicles for promotion creation of jobs in the

economy, at the same time, it is also true that the nature of employment in the sector is undergoing

change. Employment generation figure declined from 6.3 persons per SSI in 1987-88 (2nd Census) to 3.6

persons per SSI in 1999-2000 (Sample Survey). Expert committees which have looked at this issue have

also come up with different sets of recommendations. The Task Force on Employment Opportunities

under Shri Montek Singh Ahluwalia had identified SSIs as an important source of employment and as an

important incubator for entrepreneurship. The Task Force however called for a shift in policy from

protection to promotion. The Task Force felt that almost 70% of the total employment opportunities

generated over the next 10 years were likely to be in the services sector. On the other hand, a Special

Group on Employment for creation of 10 million employment opportunities per year over the 10th Plan

under Dr. S.P. Gupta has recommended that since more than 92% of employment generation in the

economy is coming from small and medium enterprises, including agriculture - commonly defined as the

unorganized sector, there is need to give special focused attention for meeting the requirements of small

and medium enterprises to enable them to create more jobs in the future.

During the 1990s, jobs in the organized sector grew at less than 1% per annum while jobs in the

SSI sector increased by 3.5% every year. In the changing scenario, on account of globalization and

liberalization, what shall be the impact on the creation of new jobs by SSIs? Does increase in capital

intensity of SSIs, as they go in for technological up gradation

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COMPANY PROFILE

Name of Company: Metro Metal Industries

Address: Plot No. E-31/4, choti Bihar, Bareilly(U.P)

Location: Beside Tirsul Rice plant, Near Air force station

60

Area of Factory: 800 Sq. Mtrs

Buildup Area: 369 Sq. Mtrs. including Office Block & Manufacturing Unit

Establishment of Company

: Metro Metal Industries is established on

  4th September 2002 at Choti Bihar, Bareilly

Available Human Resource

: There are 25 skilled and highly experienced

employees working honestly for the Company

Availability of Power: Company has got sanction power supply

of 50 HP

LIMITATIONS

Limited time available for interviewing the respondents. As a result of this it was not possible to

gather full information about the respondents.

When I interviewed children and teenagers, sometimes they use to

61

Give answers under the influence of their parents or elders.

As summer training is going under summer season so sometimes

People are less interested in filling up questionnaire.

Sometimes the problem which I face is language problem for which I have to make them

understand.

Non-cooperative approach and rude behavior of the respondents.

If the respondents answer does not falls between amongst the options given then it will turn up to

be a biased answer.

MY FINDINGS

During the survey it was found that still there are 40% people who have not using metro metal

furniture

Lake of Awareness in consumers. Many people are not know about Metor metal furniture specially

institute and Hospital.

As I found that the main product of Educational furniture is and company firstly wants to capture

maximum market in Furniture market which is approx. 66%, after it METRO is concentrating

62

upon HOSPITAL & INDUSTRIES FURNITURE which has market of approx. 88%, so it is not

concentrating upon FURNITURE

When I interviewed people then many of the people can not recall METRO METAL

INDUSTRIES advertisement. It shows Lake of Advertisement or advertisement is not timely given

or advertisement is not given on right time.

In its advertisement is not using any brand ambassador which attracts all EDUCATIONAL group

people like STILISH FURNITURE.

There is Lake of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest etc.

I find the main thing is that “METRO” brand name has very good image in consumer’s mind and

they consider it as STANDURD & Good Product.

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SUGGESTIONS

In order to maintain and increase the sales in the city of BAREILLLY, the following

recommendations regarding METRO METAL INDUSTRIES; particularly regarding

advertisement, distribution, promotional policies, etc, are hereby suggested:

First and foremost METRO should take proper action in order to improve service, because

although being on a top slot in EDUCATIONAL FURNITURE and METAL supplies it does not

get the sales in FURNITURE, which it should get.

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METRO should give local advertisements apart from the advertisements given at the national

level. Local advertisement must mention the exclusive METRO shops of the city.

Try and change the perception of the people through word of mouth about METRO in

advertisements, because they are the best source to reach EDUCATIONAL INSTITUTE and

HOSPITAL FURNITURE.

Company should launch FURNITURE in new attractive packing to change image of METRO

METAL in consumers mind.

Advertisement can be done with the help of NEWS PEPAR that attracts EDUCATIONAL

INSTITUTE and HOSPITAL because FURNITURE is consumed largely in this segment.

Company should launch FURNITURE in new STANDARD STILE.

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CONCLUSION

As we know that METRO METAL is small scale organization and market leader in

FURNITURE products. It has maximum market share in Educational and Hospital furniture, which are its

main/core products. As we know Metal is a co-operative organization but furniture industry is a profitable

industry we can’t ignore it. With the help of research, company can find out its week points in product and

can increase its market share through rectify mistakes. People have believed in METRO METAL’s

product and they will accept its furniture also if effective actions were taken.

The survey resulted into following conclusions:

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Metro must come up with new promotional activities such that people become aware about Metro

metal like educational, official, hospital and industrial furniture.

Quality is the dominating aspect which influences consumer to purchase Metro product, but

prompt availability of other furniture and aggressive promotional activities by others influences the

consumer towards them and also leads to increase sales.

People are mostly satisfied with the overall quality of METRO METAL , but for the existence in

the local market METRO must use aggressive selling techniques

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