All You Need To Know About Large Scale Industries

If you love knowing about industries and businesses, you have come to the right place! Large scale industries typically have a journey that is inspiring and fascinating. Know more about the large scale industries in India, read on!

large scale industries

Let us take a moment here and wonder about the paints that we use to paint our houses, the clothes that we wear daily, the cars that we drive to go places, the smartphones that we use to stay connected, and many more of these big little things that we purchase, we get all these from a store.

But, where exactly do they come from? Yes, you are right, from the industries. Here, each element of the industry, like, the manufacturers, the distributors, and the retailers work together like cogs in a clockwork in complete synchronization to make sure that the final product reaches our doorstep. The group of such organizations that come together to manufacture and supply a similar type of product or service is called an industry.

So, the clothes that we wear are produced in the textile industry, the cars that we drive reach us because of the production plants in the automotive industry, and the smartphones that we use are the hard work of the electronics industry is part of large scale industries. All the stuff that we use, from the smallest of the small to the biggest of the big, everything gets manufactured by industry.

The Industrial Revolution was the transition to new manufacturing processes, which included hand production methods changing over to machine production technologies, new chemical manufacturing processes and iron production processes, the increased use of steam and water power, the development of machine tools, and the rise of the mechanized factory system.

The first steam-powered cotton mill in Bombay marked India’s introduction to the industrial revolution in the year 1854. Industrialization brought greater opportunities for employment in both the small scale and the large scale industries. And rest as they say is history, making India the world’s sixth-largest economy.

What Is A Large-Scale Industry?

As the name suggests, a large-scale industry employs a large workforce and consumes a huge quantity of power. It requires a wide variety of raw materials, large-scale investments, and a huge workforce that use heavy machinery to manufacture the final products. These large-scale industries employ superior and latest technologies to ensure an uninterrupted production line. 

In India, large-scale industries are those with a fixed asset of more than one hundred million rupees or Rs. 10 crores. The Indian economy relies heavily on such industries for economic growth, the generation of foreign currency, and the creation of job opportunities for millions of Indians living in India.

Many industries contribute to the Indian economy that come under the umbrella of a large scale industry like cotton industry, tea industry, jute, cement, paper, engineering industry, food processing, information and electronic technology, and automobile industry. 

Types of Large Scale Industries

Large scale industry can be widely split into two major subcategories, these are the heavy large scale industries and the light large scale industries.

Light large scale industries are those which are more consumer-oriented and less capital-intensive than heavy industry, as they typically produce smaller consumer goods. The products manufactured by these industries are produced for the end-users and not as raw materials to be used by the other industries. The automobile manufacturing industry falls under this category since its final product is a car, which is a consumer good.

Opposite to the light industry, the heavy large-scale industry manufactures large, heavy articles and materials in bulk. These are more business-oriented and cater to other industry requirements by providing them with raw materials. The aircraft manufacturing industry can be considered heavy industry.

Large Scale Industries Examples

1) Textile Industry

Textile Industry
Textile Industry

Textile industry plays a major role in the nation’s economy by providing numerous job opportunities to more than 45 million (2017-2018) people. As of FY20, it contributed 2 percent to India’s GDP and 12 percent to India’s export earnings. Government has three major initiatives to promote this industry, being National Textile Policy, Khaadi App Store, and Pradhan Mantri Fasal Bima Yojana. 

Textile industry spreads over a wide spectrum ranging from the manufacturing of raw materials such as jute, wool, silk, and cotton to greater value-added goods such as readymade garments prepared from different types of manmade or natural fibers.

India exports yarn to many countries including, but not limited to, Japan, United States, United Kingdom, Russia, France, Nepal, Singapore, Sri Lanka. India stands as the world’s second-largest, after China, in installed capacity of spindles, with 43.13 million spindles as of March 2011. 

Some of the prominent companies in India’s textile industry are Arvind Limited, Vardhaman Textiles Limited, Raymonds Limited, and many more.

2) Food Processing Industry

Food Processing Industry
Food Processing Industry

India’s food and grocery market contributes 70 percent of the sales in the world and stands as the sixth-largest. 

It is considered a sunrise sector and has gained prominence in the past few years. It is also considered as the bridge between the agriculture and industrial segments of the economy. Its contribution is somewhere around 14 percent of manufacturing GDP and 13 percent of India’s total food exports, employing 1.85 million people.

Some of the prominent companies in India’s food processing industry are Amul, MTR, Mapro Foods, Dabur, and many more.

3) Chemical Industry

Chemical Industry
Chemical Industry

Chemical Industry is considered the oldest domestic sector industry in India. It contributes 7 percent to India’s Gross Domestic Product (GDP), making it a major contributor to our economy. This industry generates employment for around five million people.

We are the sixth-largest in the world and the third-largest producer of chemicals in Asia, generating around 80,000 commercial goods. By 2025, the Indian chemicals and petrochemicals industry is estimated to have Rs. 8 lakh crores (US Dollar 107.38 billion) in investments.

Indian chemical industry majorly manufactures basic types of chemicals as well as knowledge type chemicals and specialty type chemicals. India also produces products related to petrochemicals, fertilizers, glass, toiletries, pharmaceuticals, etc. Some of the prominent companies in India’s chemical industry are Tata Chemicals Limits, Gujarat Alkalies, and Chemicals Limited, Pidilite Industries Limited, etc.

Also Read: How to Start a Business in India

4) Cement Industry

Cement Industry
Cement Industry

The Indian cement industry is the world’s second-largest cement producing industry in the world, having more than 7 percent of the global installed capacity. Cement production was calculated to be 329 MT in FY20 and is expected to reach 381 MT in FY22.

Many state governments in India govern the 10 large cement plants spanning the Indian geography. Altogether, they have an installed capacity of 148.28 million tonnes per annum. India also has 115 big cement plants and around 300 small cement plants owned by private companies, having a total capacity of 11.10 million tonnes per annum.

The cement sector is expected to expand with the potential future development in the Indian infrastructure and construction sectors. Some of the recent initiatives, such as development in National Infrastructure Pipeline (NIP) and Urban Rejuvenation and more under Pradhan Mantri Awas Yojana, are expected to provide a major boost to this sector.

Some of the biggest players in India’s cement industry are Ambuja cement, Aditya Cement, L & T Cement, and Ultratech Cement.

5) Steel Industry

Steel Industry
Steel Industry

India stood as the world’s second-largest steel-producing industry in 2019 surpassing Japan, with crude steel production of 111.2 million tonnes (MT). This is due to the continuous modernization of this industry with state-of-the-art steel mills.

The Indian steel industry has three categories – major, major and secondary producers. The Indian steel industry has gained a lot of boost due to the abundant availability of raw material and cost-effective labor. The government of India has taken some initiative to encourage steel production in India, these being the Steel Research and Technology Mission of India (SRTMI), National Steel Policy (NSP), and Production-Linked Incentive (PLI) scheme.

The key players in the steel Industry are the Steel Authority of India (SAIL), Bokaro Steel Plant, etc.

6) Software Industry

Software Industry
Software Industry

Information technology (IT) and business process management (BPM) together fall under the umbrella of the software industry. In FY19, the growth of IT reached USD 181 billion. It generated employment for over 4 million people in FY20. This industry contributes to 8 percent of India’s GDP in FY20.

In the last 10 years, India has seen a massive expansion here. By 2025, the software product industry is expected to become a USD100 billion industry. International markets are the next focus to expand their global footprint and enhance the global delivery centers.

IT sector generates both domestic and export revenues. In FY19, exports had reached USD 137 billion and the domestic revenues (software and hardware) touched USD 44 billion. Other verticals, like retail and healthcare, massively use the services and products of the Indian IT industry, promoting its growth. The IT-BPM industry accounts for close to 30 percent of the global market.

Some of the major players in the Indian IT-BPM sector are Tata Consultancy Services, Infosys Limited, Wipro Limited among many others.

Also Read: Top 8 Reasons For Startup Failure

Large Scale Business Ideas

Large-scale business in the economy is big business. For example, manufacturing, agriculture, and service industries are all considered large-scale businesses. That’s because they have a much larger economic footprint when compared to other companies that are not classified as large-scale. The jobs being created by these businesses are very meaningful for communities because they help provide products that are consumed by people daily.

  • Textile Mill
  • Agrochemical
  • Artificial Intelligence
  • Bioplastic Packaging
  • Active Pharmaceutical Ingredient producer 
  • Organic Lifestyle Products
  • Electric Vehicle Manufacturer 
  • Drone & Defence Manufacturer
  • Food Chain

Advantages And Disadvantages of Large Scale Industries

Large-scale industries have been with us for more than two centuries, and like any other, they have two sides of a coin. Let us dive into some advantages and disadvantages of large-scale industries.

Alleviation of Poverty and UnemploymentHarmful to the environment 
Research and DevelopmentUnion struggles
Goods standardizationOverflow of production
Bulk productionCut throat competition
Division of labourWars due to international complications

Advantages of Large Scale Industries

  • Eradicate Poverty and Unemployment

Rapid industrialization can greatly help eradicate unemployment and poverty. As we are all aware, large-scale industries need huge manpower to run. They provide a lot of job opportunities, drawing the population from low employment areas.

  • Research and Development

Large-scale industries are always on the lookout for developing new products to get them that extra edge on their businesses. They encourage the development of science and technology. Large scale industries generate big revenues leading to larger amounts of capital and financial resources. Therefore, they can finance expensive research and experiments which lead to the discovery of newer, better, cheaper technologies to manufacture goods and provide services.

  • Goods Standardization

The industries giving outputs on a larger scale need to produce them on a larger scale too. This large-scale production leads to the production of standardized goods. The best example is the car manufacturing industry that sells standardized cars. Only when the industry is big, can they transport them to far-off places as well.

  • Mass Production

Large-scale industries are designed to produce goods in bulk. The mass production of items helps them to cater to the needs of the increasing population and their demands. When goods are manufactured in bulk, it helps to bring down the production cost thereby reducing the selling price. This helps the common man to afford better quality products and cheaper rates.

  • Division of Labor

In a large-scale industry, one big complex process is split into many smaller and easier processes. These processes are simpler and can be carried out by both men and women easily, which does not require much hard physical work. This helps in increasing the output and reducing the per unit labor cost.

Disadvantages of Large Scale Industries

  • Harmful to the Environment

Large-scale industries are one of the major pollutants miscreants. The increase in these industries is leading to an increase in pollution as they emit toxic and poisonous gases and by-products. This causes a very serious threat to our environment leading to global warming.

When these factories do not process their byproducts with care and dump them or expel them without considering the harm these may cause, it costs us our environment’s health and our well-being in the long run. Large scale industries need to be more vigilant and responsible in disposing of their wastes. These industries also deplete the natural resources which take a lot of years to replenish.

  • Union Struggles

Unions were formed to protect the laborer working in the industries. The large-scale industries employ a huge number of laborers at a very low cost. This gives rise to the struggles and disagreements between the laborers and the capitalists. Both these parties have very different interests.

  • Overflow of Production

Large scale industries are always producing goods in huge quantities. Sometimes when the market demand doesn’t heat properly, it results in overproduction. This leads to a decrease in the prices of such products and the businesses run into losses.

  • Cutthroat Competition

All businesses want to maximize the share of their products in the market, this leads to a lot of competition between them. When the players are big, the competition gets bigger. Sometimes, the businesses stoop to unfair strategies to have an upper hand in the deal. This is not good for society nor for businesses.

  • Wars due to International Complications

Most of the large-scale industries manufacture export goods. This creates a clash of interest and competition in the market and materials. International conflicts sometimes arise from such complications. These scenarios have led to wars in history and should be avoided.

Also Read: Top 20 Manufacturing Business Ideas

Final Thoughts

Large-scale industries are the building blocks and the backbone of a country. They make the economy strong and give stability to the future. They help the society to improve its standard of living on one hand but if not regulated diligently, this may lead to the downfall of mankind.

Frequently Asked Questions

Are there any other large-scale industries apart from the ones listed above?

Mining industry, jute industry, petroleum and natural gas industry, pharmaceutical industry, power industry.

What is the minimum fixed asset requirement for an industry to be large in India?

Large-scale industries should employ massive infrastructure with an influx of capital assets. Also, in India, a large-scale industry must have fixed assets worth at least Rs. 10 crores.

What do large-scale industries require the most?

Large scale industries of course need large capital investments, along with basic amenities like water supply, electricity supply, and transportation infrastructure. They require raw materials in bulk quantities and a great number of skilled labor.

How to open a large scale industry?

First do market research, collect funds, start with a small set-up, get funding and scale-up.