Empirical Study On PerformanceMeasurement Of Plastic Industry OfMadhya PradeshA. K. Singh *Charu Singh**There is a clear distinction between the traditional and modern small industries. The traditional smallindustries include khadi and handloom, village industries, handicrafts, sericulture, coir, etc. Modernsmall industries manufacture a wide variety of goods from simple items to sophisticated items such astelevision sets, electronics control system, various engineering products, particularly as ancillaries to largeindustries. The common factor emerged from all the location of this industry where the diversions ofworking capital fund for creation of fixed assets. Even the previous studies also indicate this type of seriousproblem, which not only damages the SSI sector but also influences the economy de-growth of the nation.Previous research shows that state-owned banks in very underdeveloped financial systems direct credittowards small- and micro-enterprises which would not have received credit otherwise, but that thenonperforming loan rate at many of these institutions is very high.Keywords: Micro-enterprise, industries, SSI sector.The traditional smallindustries include khadiand handloom, villageindustries, handicrafts,sericulture, coir, etc.Modern smallindustries manufacturea wide variety of goodsfrom simple items tosophisticated items suchas television sets,electronics controlsystem, variousengineering products,particularly asancillaries to largeindustries.IntroductionThe transition period of the processof economic reforms was faced withadverse conditions such as foreignexchange constraints, creditsqueeze, demand recession, highinterest rates, shortage of rawmaterial etc. When the performanceof this sector is viewed against thegrowth in the manufacturing andthe industrial sector as a whole, itinstills confidence in the resilience ofthe small-scale sector. (SSI sectorsurvey conducted by Ministry ofNational Informatics Center withthe base year 1999) There are noclear official definitions of Small*Dean, Sangvi Institute of Management, Indore, India**Student, Sangvi Institute of Management, Indore, Indiascale industries, they are usuallydistinguished from the large-scaleand medium-scale industries on thebasis of size, capital resources andlabor force in the units.However, there is a clear distinctionbetween the traditional and modernsmall industries. The traditionalsmall industries include khadi andhandloom, village industries,handicrafts, sericulture, coir, etc.Modern small industriesmanufacture a wide variety of goodsfrom simple items to sophisticateditems such as television sets,electronics control system, variousengineering products, particularly[ 162 ] Rai Management Journal
as ancillaries to large industries. Thetraditional small industries are highlylabor-intensive, while the modernsmall industries use highlysophisticated machinery andequipment. The term small-scaleindustries are mostly used torepresent modern small industries.The SSIs manufacture many itemswhich include rubber products, plasticproducts, chemical products, glass andceramics, mechanical engineeringitems, hardware, electrical items,transport equipment, electroniccomponents and equipments,automobile parts, bicycle parts,instruments, sports goods, stationeryitems and clocks and watches. Thesmall scale sector has acquired aprominent place in the socio-economicdevelopment of the country during thepast four and a half decades. It hascontributed to the overall growth ofthe gross domestic product as well asin terms of employment generationand export. Performance of the smallscale sector, which forms a part oftotal industrial sector, therefore, hasdirect impact on the growth of thenational economy.According to Reserve Bank of India aweak unit is one which shows (i)accumulated losses equal to orexceeding 50percent of its peak networth for the immediately precedingfive accounting years and (ii) a currentratio of less than 1:1 and suffered acash loss in the immediatelyproceeding accounting year (Pandaand Patra, year 1991).Naik Committee 1991, which was setup to examine adequacy ofInstitutional Credit to small scaleindustry submitted itsrecommendation to RBI. Afterinvestigating the Naik Committeereport, RBI advised banks to ensureadequate and timely credit to thissector. RBI had classified advancesinto four categories i.e. standard, substandard,deferred and loss, Viabilitystudies should be conducted withinthree months and the nursingprogrammed also to be taken care ofwithin six months from the date ofidentification of units as sick.Nimbalkar (2003) commentedforcefully that the important issuethat of promoting technology in theSSI sector. Obsolete technology hadbeen the main cause of stagnation incompetitiveness as well asproductivity of the sector. Theproblem was also compounded withthe advent of WTO norms relating inlow tariff barriers and freeinternational trade. To address these,SIDBI has focused attention towardsindustries having potential for highgrowth and also industries requiringstrategic measures to retaincompetitive edge in the post-WTOregime.Commenting on RBIs revisedguidelines for rehabilitation of sicksmall scale industrial units AIMO(2003) stated that according to theofficial figures almost Rs.1, 00,000cores were blocked in NPA accounts offinancial institutions, which werebound to increase to Rs.2, 00,000 coreswithin the next two years, whichmean productive assets worth Rs.3,00,000 cores, which in turn wouldresult in a production loss of Rs.6,00,000 cores per annum. The GDP ofIndia was Rs.11, 51,000 crores. Thusthe production that was possible fromThe small scalesector has acquired aprominent place inthe socio-economicdevelopment of thecountry during thepast four and a halfdecades. It hascontributed to theoverall growth of thegross domesticproduct as well as interms ofemploymentgeneration andexport.December 2010 Vol. 7, Issue 2[ 163 ]
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RaiManagementJournalAn Initiative o
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From the Editor’s DeskIt gives me
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Training Delivery and Methodology i
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Reference• Bhatia, S.K (1989).
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celebrity. Keeping these two things
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Table showing PERCENTAGE OF FAMILIA
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NAMETable showing PERCENTAGE OF Q-S
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REFERENCESBOOKS -• Cloe, E. Kenne
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sations moving forward?In order to
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table 1. On an average, restaurants
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to more than 100 countries worldwid
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An Empirical Study on Indian Health
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On August 15, 2007, the PrimeMinist
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data collected from the respondents
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Profile, purpose and investingpract
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The remaining banks did not show an
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