4. 2. Classification according to Size
• Size of industries are measured by how much money is invested, employee count
and goods produced.
• Small-scale industries: Small-scale industries have less capital and
technology invested in them. There is often manual labor noticed here. Example,
Basket weaving, pottery, and handicrafts.
• Large-scale industries: Largescale industries are the exact opposite
of small-scale industries. Here the capital invested is large and advanced
technology is in use here. Example, Automobiles and Heavy Machinery.
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5. 3. Classification based On Strength of Labor
• Large Scale: Industries which employ a large number of laborer's in each unit
are called large-scale industries. Cotton or jute textile industries are large scale
industries.
• Medium Scale: The industries which employ neither very large nor very small
number of laborer's are put in the category of medium scale industries. Cycle
industry, radio and television industries are some examples of medium scale
industries.
• Small Scale: The Industries which are owned and run by individuals and which
employ a small number of laborer's are called small scale industries.
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6. 4. Classification of Industries based on product
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7. Classification of Industries On the Basis of
Source of Raw Material
• Agro based: Agro based industries are those industries which obtain raw-material from
agriculture. Cotton textile, jute textile, sugar and vegetable oil are representative industries of
agro-based group of industries
• Mineral based: The industries that receive raw materials primarily from minerals such as iron
and steel, aluminium and cement industries fall in this category.
• Pastoral based: These industries depend upon animals for their raw material. Hides, skins,
bones, horns, shoes, dairy, etc. are some of the pastoral-based industries.
• Forest based: Paper card-board, lac, rayon, resin, tanning of leather, leave- utensils,
basket industries are included in this type of industries.
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9. Classification of Industries
• On the basis of Ownership
• Private Sector: Industries owned by individuals or firms such as Bajaj Auto or TISCO situated at
Jamshedpur are called private sector industries.
• Public Sector: Industries owned by the state and its agencies like Bharat Heavy Electricals Ltd., or Bhilai
Steel Plant, or Durgapur Steel Plant are public sector industries.
• Joint Sector: Industries owned jointly by the private firms and the state or its agencies such as Gujarat
Alkalies Ltd., or Oil India Ltd. fall in the group of joint sector industries.
• Cooperative Sector: Industries owned and run co-operatively by a group of people who are generally
producers of raw materials of the given industry such as a sugar mill owned and run by farmers are called
co-operative sector industries.
• Multi-National: A multinational corporation (MNC) has facilities and other assets in at least one country
other than its home country. A multinational company generally has offices and/or factories in different
countries and a centralized head office where they coordinate global management. These companies, also
known as international, stateless, or transnational corporate organizations tend to have budgets that exceed
those of many small countries. E.g. TCS, Infosys, etc.
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11. Miscellaneous Industries
• Village industries: Village industries are located in villages and primarily cater to the needs of the rural
people. They usually employ local machinery such as oil extraction, grain grinding, and agricultural
implements.
• Cottage industries: Industries which artisans set up in their own houses, work with wood, cane, brass,
stone, etc. are called cottage industries. Handloom, khadi, and leatherwork at the artisan’s house fall in
this category.
• Consumer-based industries: Consumer industries convert raw materials or primary products into
commodities directly used by the people. Textiles, bakeries, sugar, etc. are some of the consumer goods
industries.
• Ancillary Industries: The industries which manufacture parts and components to be used by big
industries for manufacturing heavy articles like trucks, buses, railway engines, tractors, etc. are called
ancillary industries.
• Basic Industries: Industries on which depend many other industries for their manufacturing processes
are called basic industries. The iron and steel industry and power-generating industries are included in
this category.
• Capital Intensive Industries: Industries requiring huge investments are called capital-intensive
industries. Iron and steel, cement, and aluminum are outstanding examples of capital-intensive
industries.
• Labour Intensive: Industries that require a huge labour force for running them are called labor-
intensive industries. In these industries, labour is more important than capital. Shoe-making and bidi-
manufacturing, etc. are included in these industries.
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12. • Reasons: Following are the reasons which have led to the concentration of industries at
certain places:
i. Electric power: Easy availability of electric power at certain places has resulted into
concentration of industries.
ii. Growth of light industries: There is sudden growth of a number of light industries in
large towns.
iii. Heavy industries: The sitting of a heavy industry attracts other subsidiary industries
and as a result, an industrial complex is formed.
iv. Road transport: The developments of road, railway and air transport have made it
possible to locate industries at previously inaccessible sites.
v. Types of population: The people of certain areas are known for their initiative and
hard work and as a result, a number of industries of varying nature might have come
up in those areas.
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15. Following are the general requirements of all typical normal industries:
1) Amenities in the form of landscape features such as parks, trees, playgrounds, etc.;
2) Availability of cheap land;
3) Facilities for industrial waste disposal such as big perennial rivers, tidal streams, etc. ;
4) Nearness to the markets;
5) Nearness to the related industries;
6) Nearness to the source of supply of raw materials;
7) Public services such as electricity, sewerage and water supply; (8) supply of skilled and unskilled
labor at reasonable rates;
8) Tax structure of the local authority;
9) Overall industrial climate of the surrounding locality;
10) Topographical conditions of site such as good drainage, level, firm soil, etc.
11) Transport facilities by rail, road or ship; etc.
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16. SITTING OF AN INDUSTRY
• Factors to be considered
1. Location accessibility and infrastructure
2. Availability of Water
3. Zonal Classification
4. Site cleaning & clearing
5. Topo and geotechnical survey
6. Sewage and effluent discharge
7. Power supply conditions
8. CNG, LPG, and fuel oil supply conditions
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17. • Proper zoning of industries, optimized synergies and shared services leading to increased
efficiency by individual industries
• Optimal utilization of land with high density of production units
• Attractiveness for high investments
• Economy of scale for services with many common service
• Investors are able to concentrate on the core business, while the services/synergies/
management is organized by the Industrial Park Management
• Has marketing advantage for foreign investors
• Environmental friendly park
• A high level of acceptance of the site in the surroundings
• Well planned park management
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18. • Reduction of greenhouse gases
• Segregation of growth and energy and resource consumption in industrial parks
• Reduction of negative environmental impacts (land contamination, emissions, waste,
wastewater, damage to biological diversity etc.) in selected industrial establishments
• Reduction of specific usage of natural resources (energy, raw materials, water) in
production processes of selected industrial sectors
• Adapting to changing climatic conditions: above all excessive rain, water shortage and
temperature increase
• Decrease in emissions, wastewater and waste, which are adverse to good health for the
surrounding population
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20. Ref: Abhishek K & Arindam Biswaas, Guidelines for Physical Infrastructure in Industrial Area Planning: A Review of the Indian Context, Journal for
Studies in Management and Planning, Volume 03 Issue 13 December 2017, ISSN: 2395-0463, https://doi.org/10.26643/JSMaP.3.13.2017.269-278
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