Chapter 02::Ancillary & Tiny Industry

The IPR 1977 categorised SSI into three categories

• SSI
• Ancillary Industry
• Tiny Industry

Definition:
Ancillary Industry: Ancillary industries are small industries having investment in fixed assets, plant and machinery not exceeding Rs. 75 lakhs and engaged in

• manufacturing of parts, components, sub assemblies
• rendering of services, supplying, rendering or proposing to supply or render 30% production of total services, to other units of for production of other articles
• should not be subsidiary of or owned or controlled by any other undertaking

Tiny Industry: A unit is treated as Tiny industry where investment in plant and machinery does not exceed Rs. 5 lakhs