MSME Businesses – List of Businesses Comes Under MSME
Micro, Small and Medium Enterprises, also known as MSME, refers to those establishments where the funding in the machinery and the plant does not exceed Rs.50 crores and the Annual turnover is below Rs.250 crores. The Government of India has a Ministry, namely the Ministry of Micro, Small and Medium Enterprises. The Ministry is dedicated to administering the rules, regulations and laws for such MSMEs.
The table below briefs the investment limit and annual turnover for Micro, Small and Medium Enterprises.
Business Categories Under MSME
There are two categories included in MSME, namely:
- Manufacturing Enterprises: These are the organizations involved in the production of goods. They are further categorized based on the investment in the plant and machinery and the annual turnover.
- Services Enterprises: These enterprises provide services and are further classified based on the investment in equipment and annual turnover.
List of Businesses Under MSME
Here is a list of 48 businesses that come under MSME:
- Active Pharmaceutical Ingredients
- Automobile garages
- Automobile Parts Components
- Automotive Electronic Component products
- Ayurvedic Products
- Back Office Operation in connection with Computerized Data
- Beauty Parlor
- Bicycle parts
- Call center
- Ceramics products
- Coir Industry
- Electronic Surveillance and Security
- Energy Efficient Pumps
- Engineering and Fabrication
- Glass products
- Handicraft activities
- Hosiery Products
- IT Solution Provider
- Khadi Products
- Laundry and Dry Cleaning
- Leather products
- Mechanical Engineering
- Micronutrients For Plants
- Multi Channels Dish cable Antenna
- Natural Fragrance and Flavors
- Photographic lab
- Phone booths
- Placement and Management Services
- Poultry Farm
- Recorders, VCRs, Radios
- Rental and Leasing of equipment
- Retail Trade with low Capital
- Rubber Products
- Servicing of Agricultural Farm Equipment
- Stationery Items
- Testing Labs for industries
- Toughened Metallic Ware
- Training and Educational Institution
- Transformer, Motors,
- Wooden Furniture
- X-Ray Clinics
It is likewise vital to be conscious of the businesses that are not included under MSME. Enterprises that are not engaged in manufacturing and offer services will not be classified as Micro, Small and Medium Enterprises. Trading services are usually not included, but traders who develop and sell unique products are included. Along with the product, if the trader provides services, they fit into MSME.
What is the reason for the success and growth of MSME in India?
- The financial requirements are minimum.
- A good share of the revenue from exports.
- The capability in developing required and specific technology indigenously.
- The adaptability in operation.
- Significant Contribution to production in Connection with Defense.
- Technology-focused Industries.
- Replacement for products that were imported.
- Easily accessible and well-connected locations.
- Competitiveness with developed countries.
- Competitiveness in the international export market.
What are the Schemes Available for MSME Financing?
The available MSME financings are:
1. MSME Loan:
2. MUDRA Scheme for MSMEs:
Under the Micro Units Development & Refinance Agency scheme, the public sector or Government banks provide up to Rs.10,00,000 as loans.
MUDRA provides 3 Main types of loans based on the phase of the startup:
- Shishu Plan: Under this scheme, the new MSMEs and Startups can avail of loans up to Rs.50,000
- Kishor plan: Under this scheme, the mid-range MSMEs and Startups avail of loans up to Rs.5,00,000.
- Tarun plan: Under this scheme, the established MSMEs and Startups avail of loans up to Rs.10,00,000
Launched by MSME and SIDB, Credit Guarantee Fund Scheme for Micro and Small Enterprises Scheme lends loans to small enterprises and businesses up to Rs.10 Lakhs without collateral. However, for loans over Rs.10,00,000 and up to Rs.1,00,00,000 the loan is provided by giving a mortgage of land and building associated with the business.
4. Credit Facilitation Through Bank by NSIC:
Launched by MSME, the loan facilities under the scheme are given by the National Small Industries Corporation.
NSIC has signed MoU with Private and Government banks to facilitate quick and special purpose loans for MSMEs and also aids in completing the documentation and legal formalities.
5. CLCSS for Technology Upgradation:
Under the Credit Link Capital Subsidy Scheme, the government of India and MSME provide loans and credit facilities to upgrade their technologies. Loans up to Rs.15 Lakhs are provided under this scheme.
Which are the few companies which come under MSME?
According to Economic Times, the following is a list of best performing Micro, Small and Medium Enterprises in India
- Olimax system Pvt Ltd, Pune
- Minimac System Pvt Ltd, Pune
- Assam Carbon Product Ltd, Guwahati
- Emkay Taps and Cutting Tools Ltd, Nagpur
- New Aniket Packaging Industries Pvt Ltd, Pune
- Sea Hydrosystems India Pvt Ltd, Kancheepuram
- Marudhar Packaging, Bengaluru
- Shiva Granito Export Pvt Ltd, Udaipur
- Acemicromatic Manufacturing Intelligence Technologies Pvt Ltd, Bengaluru
- Aerol Formulations Pvt Ltd, New Delhi
Hence, if you scheme to set up a start-up or a small scale business that fits in the categories mentioned, it would be of greater advantage. MSMEs get loans under special government schemes and also from Non-Banking Finance Companies. So kick start your journey into the world of entrepreneurship.
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