INTRODUCTION

A large scale industry would have an investment of more than hunderd core rupees but less than
fifty core rupees. In case the SME is engaged in providing services then a large enterprise would
have an investment of more than fifty lakh rupees and less than twenty five core rupees and a
large enterprise would have an investment of more than fifty core rupees but less than hundred
core rupees. Today their investment, technology and production patterns at local level are
determined by national and international factors. They are characterized with the techno-
economic merits of both small and large enterprises. They enjoy easy access to capital,
technology and markets production, distribution and consumption of their products across the
globe.

The large manufacturing enterprises (LMEs), defined first time in the history of industrial
development, constitute an important and progressive segment of economy. Priority lending
facility is extended to enterprises that come under small and medium enterprises category by the
Indian government. Generally this term is used by European countries and some international
organizations such as WTO, World Bank and by United Nations. Large scale are the backbone of
industrial development. They play an important role in the economy of both developed and
developing countries.

But at the same time the new policy measures introduced in industry, trade and financial sectors
have provided new challenges and opportunities for operating LMEs internally and externally
from both within and outside the country. The Indian economy is now opened up for global
competition, so they will have to face stiff competition from global players. Therefore they have
to upgrade their management styles to survive and grow in the changed economy, and to become
global leader.

There is also need for new types of policies and programmes on behalf of the central and state
governments In the emerging business environment their sustenance is possible only if they have
competitive edge in terms of cost, quality, techniques, processes etc. and their customers are
fully aware of their product/services and have easy access to them.In this regard the government,
with a well envisaged institutional framework is endeavoring to help large enterprises by
providing new ideas, approaches, processes and techniques to consolidate and strengthen their
operational efficiency. But there is lack of information in regard to their number, investment,
output, exports, spatial distribution, techno-economic requirements etc. is lacking. This study
attempts to provide a baseline pertaining to their size, spread, strengths etc. which may help for
evolving new policy measures.
 OBJECTIVE

The objective of this micro project are –

To study the different principle of large scale industry:-

1. Large-Scale Industry
2. Capital And Management
3. Limits On Industrialization
LARGE-SCALE INDUSTRY

The term "large-scale industry" refers to factories that combine at least three
characteristics: use of machinery, employment of wage labor, and the application of regulatory
measures such as the Factory Act or Disputes Act. These features were of recent origin in
nineteenth-century India and, to a large extent, products of British colonial rule. In employment
statistics, the units registered as "factories" under the Factory Act can be considered large-scale
industry. In reality, the registered factories included a fair number of units that did not employ
machinery, but with few exceptions, registered factories did possess the other two features.
Impressive as it was, the growth was an uneven one. Industries around Bombay (Mumbai) and
Calcutta (Kolkata) accounted for about half of factory employment. Ahmedabad, Madras
(Chennai), and Kanpur saw limited development of factories. In the interwar period, key
resources such as capital, labor, knowledge, railway connection, and electric power were no
longer concentrated, and industrialization began to spread. As much as 45 percent of factory
employment in the early twentieth century was engaged in cotton and jute textiles. Other
important groups included tobacco and leather. The share of chemicals, metals, and machinery
was very small. Machinery and manufactured intermediate goods were still largely imported.

CAPITAL AND MANAGEMENT

Pioneers in modern industry came from communities that had specialized in trading
and banking activities. On the west coast, the Parsis, Khojas, Bhatias, the Gujarati traders and
bankers based in Ahmedabad, and the Bombay-based Baghdadi Jews were the early mill
owners. Several of these communities had a history of collaboration with Europeans. Some had
withdrawn from the maritime trade as European firms based in London took control of it
Industrial capital was persistently scarce in India, and financial market institutions were
undeveloped. The major government-backed Presidency Banks of the period did not supply
long-term capital. Indian joint-stock banks were prone to bankruptcy. The informal money
market served too narrow a clientele with too few instruments.

The British "managing agency system," wherein the owners of a company contracted
its management to another firm for a fee was common in India since the nineteenth century
Principals and agents then belonged to a small network, but that situation changed when
limited liability became popular beginning in the 1870s. The small shareholder could no longer
monitor the managing agent, paving the way for mismanagement and fraud. Despite these
problems, the system continued until 1970, in part because the agent facilitated loans and
deposits. With the expansion of professional managers and the use of the "holding company"
for control, the system became redundant.
LIMITS ON INDUSTRIALIZATION

Large-scale industry entered the processing of natural resources, abundant and