Classification of Industries

Classification of Industries

Industries are classified on various basis in the following ways.

On the basis of Raw Materials

i. Agro Based Industries: These industries use plant and animal based products as their raw materials. Example: Food Processing, Vegetable Oil, Cotton Textile, Dairy Products, etc.

ii. Mineral Based Industries: These are the industries that use mineral ores as their raw materials. Iron made from iron ore is the product of mineral based industry. Cement, Machine Tools, etc. are the other examples of mineral based industries.

iii. Marine Based Industries: These industries use products from the sea and oceans as raw materials. Example; Processed Sea Food, Fish Oil manufacturing units etc.

iv. Forest Based Industries: These industries use forest products as their raw materials. Example: Pulp & Paper, Furniture and Some Pharmaceuticals industries, etc.

On the basis of Size and Capital

i. Large Scale Industries: The capital required for the establishment of an industry is more than one crore the industry is called as large scale industry. Iron & steel, Oil refineries, Cement and Textile industries are the best examples for large scale industries.

ii. Small Scale Industries: The capital required for the establishment of an industry is less than one crore, the industry is called as small scale industry. Silk weaving and household industries belong to this category.

Detroit of India

Detroit city in Michigan State, USA is known as the world’s traditional automotive centre. In India Chennai is known as ‘Detroit of India’. It has the world famous automobile industries such as GM, Ford, Hyundai and Mahindra. The city accounts for 60% of the country’s automotive exports.

Apart from the above cited industries, cottage or household industries are also a type of small scale industry where the products are manufactured by hand, by the artisans with the help of family members. These industries are also classified and grouped as miscellaneous categories. Example: Basket weaving, Pot Making, handicrafts etc.

On the basis of Ownership

i. Private Sector Industries: These type of industries are owned and operated by individuals or a group of individuals. Example: Bajaj Auto, Reliance, etc.

 ii. Public Sector Industries: These type of industries are owned and operated by the Government. Hindustan Aeronautics Limited (HAL), Bharat Heavy Electricals Ltd (BHEL), Steel Authority of India Ltd (SAIL) are the examples of Public sector industries.

ACTIVITY :

List out the ownership based industries which are located in your places.

iii. Joint Sector Industries: These types of industries are owned and operated jointly by the Government and Individuals or a Group of Individuals. Example: Indian Oil Sky Tanking Ltd, Indian Synthetic Rubber Ltd, Mahanagar Gas Ltd, Maruti Udyog etc.,

iv. Co-operative Sector Industries: Industries of this kind are owned and operated by the producers or suppliers of raw materials or workers or both. Anand Milk Union Limited (AMUL) is the best example of the Co-operative sector.