How to go About Starting an SSI Unit, Land, Building Requirement, Manufacturing Capacity Per Annum, Manufacturing Process, Machinery, Raw Material Requirement, Power Requirement, Manpower Needs

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	How to go about starting an SSI unit? The first that comes to mind is which product you propose to manufacture. In this respect, the following factors as suggested by Y. P. Suri, General Secretary, Federation of Associations of Small Industries of India, New Delhi,- could prove helpful. "1. Product Line - Depth, Width; 2. Packaging 3. Branding/Marketing; 4. Warranties and after Sales Services. Besides the above, one has to consider 1.The availability and selection of raw material; 2. Process Technology; 3. Market feasibility and access to markets; 4. Taxation structure on the products; 5. Incentive and support from the Government. Market survey / information/ market intelligence is very important for selection of products.
While selecting a product and if it has export potential as well, one has to consider - 1. The special requirement for packing, e.g. in Australia wooden packaging is not allowed.; 2. What product adaptation/ standards are needed to be made for a specific country? e.g. whether voltage supply is 220 V or 220 V for electrical appliances etc.; 3. Whether any WTO conditionalities are involved. e.g. ISO-9000 Certification etc.
EXIM Bank (Export Import Bank of India) has developed a model to conduct the export product portfolio analysis based on three parameters viz. 1. Supply Capability in Product Groups.; 2. Domestic Environment; 3. Export Market Attractiveness." Location where the unit should be situated matters a lot and the few important things are: "The enterprise/ activity can be set up in a designated Industrial Area, where infrastructure facilities are available and is near to the market identified. It can also be set up in any other area depending upon nature of activity and local municipal rules. Certain states/ areas carry backward area incentives of Sales Tax, Income Tax, transport subsidy and even Central Excise Duty which should be carefully taken into consideration."
Another essential prerequiste to starting an SSI unit is to consider pros and cons in terms of financial viablity of the project, in particular. This can be. done through Project Assesment Report. "It is a document which gives an account of project proposal to ascertain the prospects of proposed plan/ activity. It contains details about: 1. Land and Building requirement; 2. Manufacturing Capacity per annum; 3. Manufacturing Process; 4. Machinery and equipment with prices and specifications;
	5. Raw Material requirement; 6. Power requirement; 7. Manpower needs; 8. Marketing Cost of project/ production; 9. Taxation Structure-like impact of Central Excise Duty etc.; 10. Financial Analysis and Economic Viability. Guidelines are available with Small Industries Service Institutes, District Industries Centres and Financial Institutions. Information on current prices of machinery, equipments, raw materials and other inputs have to be collected from markets. While calculating cost of production, one has to ascertain the excise duty and other related taxes, if any, applicable on the particular product.

Presently, Central excise exemption to S5I sector is available upto a turnover of Rs. I crore and thereafter full rate of duty is applicable after crossing the turnover of Rs. 3 crores. This is subject to statutory variations. Also for a number of products, the assessable value for Central Excise Duty is calculated after allowing an abatement on M.R.P., while for other products it is ad valorem.

Central Excise Tariff for the Current year provides all the relevant information.

Branding - l central excise duty is charged when a small manufacturing unit in an urban area is manufacturing the branded goods of other manufacturers/traders. If a small manufacturing, unit in a defined rural area is manufacturing the branded goods of other manufacturers/ traders, the unit is exempted from payment of central excise duty."

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