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Activity Discussion Environment Classification of industries.

  • Classification of industries.

    Posted by Aruja on May 20, 2021 at 9:41 pm

    What are the 4 major criteria of classification of manufacturing industries?

    GODHULI replied 1 year, 6 months ago 2 Members · 1 Reply
  • 1 Reply
  • GODHULI

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    May 21, 2021 at 1:45 am
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    ::

    4 major criteria of classification of manufacturing industries

    1. Raw Materials

    2. Capital Investment

    3. Ownership

    4. Bulk and Weight

    1. Raw Materials:

    Firstly, the industries are classified according to the raw materials that are being used.

    Based on this, this category is further divided into two more sub-categories:

    a. Agro-Based Industries

    These are the industries that depend on agricultural products and products from domestic farming of animals. They take the raw materials directly from these areas in order to process their food.

    Examples: woolen, jute, silk textile, rubber, sugar, tea, coffee, cotton

    b. Mineral-based Industries

    These industries are the ones that derive their raw materials from the minerals. Thus they are dependent on the mineral ores and mining facilities.

    Examples: Cement, aluminum, machine tools, petrochemicals, iron, and steel.

    2. Capital Investment

    a. Small scale industry

    Whenever the industry’s overall budget is on a lower scale then the industry is a small-scale industry. Manufacturing, processing, production everything is done on a micro-scale. These are mostly indigenous products.

    Example: Agarbatti making, Chalk making

    b. Large scale industry

    Whenever the industry’s overall budget is on a higher scale then the industry is a large scale industry. Much more capital investment is required here. Highly advanced technologies and types of machinery are used as well.

    Example: railway rolling stock, shipbuilding, etc.

    3. Ownership

    a. Public sector – This happens when the industry is owned and operated by the government

    Example: BHEL,

    b. Private sector – This happens when the industry is under the ownership of individuals/groups and is operated by them as well.

    Example: Bajaj Auto Ltd

    c. Joint sector venture – This happens when the industry is under the joint ownership state and individuals/group.

    Example: Oil India Ltd (OIL).

    d. Cooperative sector-This happens when the industry is under the joint ownership of the producers or suppliers of raw materials. The resources are funded together and profit/loss is shared among themselves as well.

    4. Bulk and Weight

    a. Heavy industries

    The industries which involve big bulky goods like raw materials, and they produce heavy products as manufacturing products as well falls under this category.

    Example: Chemical manufacturing

    b. Light industries

    Here, the materials used and materials produced are both lightweight.

    Example: Shoes, electronics goods

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