A study of Small Scale Industries with special reference to Miraj M. I. D. C. in . Dr. Mrs. Chougule H. A. G. A. College of Commerce, Sangli ------

Introduction : ’s industrial economy consists of large industries, medium industries, small scale industries and traditional industries. The small scale sector, which is termed “Village and small industries” by the planning commission, can further be broadly subdivided into traditional industries and modern industries. Traditional industries include segment like handlooms, khadi and village industries, handicrafts, sericulture. Modern small scale industries are mostly those units that use power driven machinery and possess better production techniques as compared to traditional sector units. Small scale industries include those units which have investment in plant and machinery up to Rs. 3 crore. For tiny units, the investment limit is Rs.25 lakhs. Promotion of small scale industries is the responsibility of the state governments. However, central government supports the efforts of state government. Since independence India has adopted and implemented various industrial policies in order to achieve the rapid growth of industrial sector and ultimately overall growth of economy. In these policies the small scale industry has always found a prominent place.

In developing countries like India, which is characterized by salient features like the over-growing labor force, scarcity of capital, inequalities of income Small Scale Industries occupy an important place especially in terms of creation of employment opportunities that provide a source of income to millions of people. Its contribution in terms of number of units, employment generation and industrial production is quite impressive. In order to continue to play this role, small industries have to be competitive and commercially viable. The general observation is that majority of the Small Scale Industries are not competitive. They face number of problems and there is a need for their improvement. The magnitude of sickness among Indian small scale units clears this fact. At the end of March 2009, there were 1,03,996 units which were sick and an amount of Rs. 3620 corer of bank credit was blocked in them. It is in this context that a study of Small Scale Industries with special reference to Sangli Miraj M. I. D. C. in Sangli District assumes significance. Review of Research and Development in the Subject: The present statement of problem is studied by many researchers from India and abroad with different angles. International status Small scale industries in foreign countries are termed as Small and Medium Enterprises. For. Example, in Australia, manufacturing and service industries employing less than 100 employees (in case of small enterprises). In Belgium, SMEs are those which have an annual staff average of 50 employees and annual turnover (VAT excluded) extends at Engine Control Unit (ECU) 4.2 million and balance sheet total restricts to ECU 2.1 million. In Canada, SMEs are independent firms providing employment to less than 200 people. Basem M. Lozi has published article ’Small Scale Industries in the Globalisation era. The case of Jordon.; examines the role of Small Scale Industries in the economic development of Jordan by showing the effects of SSI on the employment rate, production and scale. Basem Sallam Noman Al-Sheibani in her study on A Study on the Financial Problems of Small Scale Industries in the Republic of Yemen with Special Reference to Taiz found that the SSI in Taiz are facing financial problems. Majority of SSI holders had insufficient capital, Majority had to face competition. National Status Sharad Kopardekar in his study shows that, the profitability of small scale units depend to a large extent on the successful marketing of products. Small industries in sold their maximum products to wholesalers and most of small units have local market. S. Raviprakash has studied 82 small scale industries in Madras city. Most of small scale units are working below capacity and due to lack of financial resources and SSI have no choice in the selection of right channels for the distribution of their product. The growth of small scale industries have an impact of the capital structure, capacity utilization, marketing of products and of Government policies. A Raghurama in his study analyses the problems faced by small units in getting bank finance. In this process, the problems faced by the bankers and the procedures adopted by the bank in extending finance are also examined. S. K. Bansal in his study titled “Financial Problems of Small Scale Industries in Orrisa State”, studied 150 small scale units. According to him in Small Scale Industries, there is a need for efficient management in the field of finance, personnel and production. There is a need of proper implementation of planning and efficient management for the profitability of Small Scale units. Objectives : The main objectives of the study will be 1. To know the present position of small scale industries in the development of Sangli district. 2. To know the problems faced by small scale industries in respect of production, marketing, personnel and finance in Sangli districts. Methodology : i. Research Design and Locale The present research work will be based on the survey method. The data related to the year ending 2011-12 was considered for the study. This study focuses on the present position and problems of small scale industries in Sangli Miraj M. I. D. C. in Sangli district. Sangli is one of the important district in . It is the well known trading place for turmeric and jagary. It is one of the industralised advanced district of the state with total 41580 Micro, Small and Medium Scale industries. In Sangli, Miraji M. I. D. C. there are total 880 Micro, Small and Medium Scale industries. ii. Sampling Design In Sangli Miraj M. I. D. C. in Sangli district there were 460 small scale industries at the end of 2011. Out of that 40 industries were selected randomly. For collection of primary data from small scale industry owners random sampling technique was be used. Iii. Collection of Data For the present study primary as well as secondary data will be used. a. Primary data The present study is based upon the primary data collected by using survey method. For this purpose separate questionnaire will be designed. b. Secondary Data The secondary data was collected from various journals, periodicals, economic surveys of India and Maharashtra, District Industries Office etc. iv. Limitations of the Study a. The study was conducted in Sangli, Miraj M.I.D.C. in Sangli District of Maharashtra. The results of the study will not be applicable in all areas of the country. b. Functional scope of the study will be suggestions and recommendations for betterment of Small Scale Industries. v. Data Analysis and Interpretation In Sangli district total small scale industries registered at the end of 2012 were 6116. These industries provided employment to 43791 persons. Employment provided in manufacturing sector was more than that of service sector. At the end of 2012 total investment in plant and machinery was Rs. 44564 lakhs. These small scale industries include agriculture, engineering, food processing industries like raisins etc.

Table 1. Table showing Registered micro, small and medium projects (Rs. In lakhs) Sr. Category No. of enterprises Investment (P &M) (Rs. In lakh) Employment generation

No. 1. Textile industry 996 79.68 6972 2. Food processing 319 63.73 2871 3. Other industries 408 3264 2856 4. Foundry and other industries 361 2794 2527 5. Electric products 385 2696 2445 6. Engineering 687 3792 4365 Total 5297 44564 37768 Source: DIC, Sangli It is seen from the above table that large no of enterprises are established in textile sector followed by engineering and other industries. Total investment in plant and machinery was more in engineering sector but the employment generation was more. Table 2. Table showing Status of Sangli MIDC Sr. Name of area Working industrial units No. 1. Sangli, Miraj (Kupwad) 880 2. Islampur 127 3. Palus 14 4. Jath 23 5. Kawathe Mahankal 6 6. 07 7. 15 8. IT 0 9. Palus Wine Park 04 10. Kadegaon Atirikt 07 11. Vita Development Center 08 Source: DIC, Sangli It can be seen from the above table, that industries are developed at some parts of district like Miraj, Islampur, Palus, Kadegaon. But in Jath, Aatpadi, Kavathe-Mahankal, , Shirala industrial development was not done. These talukas contents only 15 per cent of total number of enterprises. For industrial development of the district decentralization of industries should be avoided and balanced industrial development should be promoted. So, government should announce special grants, schemes, subsidies to establish industries in these remote areas. Along with this, concession in sales tax, concession in electricity charges, interest subsidies should be allowed to those industrialist who are willing to establish their industrial units in these undeveloped talukas. Problems faced by small scale industries in Sangli Miraj M. I. D. C. in Sangli District are discussed as under. 1. Problems of Finance : Small Scale Industries in Sangli Miraj MIDC are not getting enough financial assistance from commercial banks and other financial institutions. So, these industries are not modernizing themselves and are not increasing their production. 2. Problems of raw material : There are several middleman whose commission charges increases the cost of raw material. Small entrepreneurs do not have a capacity to stock raw material, so they cannot keep their production steady. 3. Problems of Marketing : These industries are not spending much money on advertisement, so their production is not so popular. There are no separate marketing organizations of these units. Besides above difficulties these units are facing problems of old technology for production, high cost of production, more taxes, labour problems. Further, these units have to compete with large industries in some cases. Prospects of SSI In Sangli Miraj MIDC.: Inspite of above problems Sangli district is rich in natural resources. But these resources have to be properly utlised. There are great prospectus for the development of small scale industries in Sangli Miraj MIDC. Generally following industries have scope from the point of view of employment generation. 1. : Textile industry and garment 2. Palus : Engineering and Agricultural development 3. Walwa : Textile/ Garment & Agricultural Processing 4. Shirala : Rice Mill, Corn Processing etc 5. Miraj : Engineering and Textile 6. Tasgaon : Rasing making ang agro processing 7. Kadegaon : Agro Processing and textlile 8. Jath : Rasing making and Ghongadi making 9. Kawathe Mahankal : Rasing making 10. Atapade : Pomegranate processing Conclusion: In Sangli Miraj MIDC SSIs have played an important role in economic development. Though these industries are facing some problems, it has bright future. There is imbalanced growth of Small Scale industries in Sangli district. Government should announce special grants, schemes, subsidies to establish industries in the remote areas. Along with this, concession in sales tax, concession in electricity charges, interest subsidies should be allowed to those industrialists who are willing to establish their industrial units in these undeveloped talukas.

References Bala Neetu, (2007). Economic Reforms and Growth of Small Scale Industries, Deep and Deep Publications, New Delhi. Kaur B. (2010). Growth of Small Scale Industries in India, Paradise Publishers, Jaipur Misra R. N. (2005). Problems and Prospects of Small Industries, Discovery Publishing House, New Delhi. Tarun T. N. S. (1986). Small Scale Industries and India’s Economic Development, Deep and Deep Publications, New Delhi.