Introduction 1.1
Introduction 1.1
Introduction 1.1
Chapter 1
Introduction 1.1
Meaning
A Small-Scale Industry, also known as small and medium sized enterprises {SMSE}, A "small-scale industry"
(SSI) is a business characterized by its relatively modest scale of operations, limited investment in machinery
and equipment, and a small number of employees. These enterprises often serve local or niche markets and are
typically more flexible and adaptable to changing conditions compared to larger corporations. Small-scale
industries play a vital role in local economies by creating jobs and contributing to economic development.
The investment in such industries is one time and these investments are mostly done on plant and machinery,
the total investment on such industries do not exceed 1 crore.
In small scale industries, the manufacturing of goods and rendering of services are done with the help of smaller
machines and very limited manpower.
Small scale industries or SSIs are known as the lifeline of an economy, which is very important for a country
like India. Being a labor-intensive industry, it is very helpful in creating employment opportunities for the
population of the country.
Definition
A small-scale industry (SSI) refers to a business enterprise characterized by its limited scale of operations,
relatively small investment in machinery and equipment, and a small number of employees. The specific criteria
for what qualify as a small-scale industry can vary by country and industry, but common characteristics include:
1. Local or Regional Focus
2. Small Workforce
3. Local or Regional Focus
4. Simple Technology and Machinery
5. Flexibility
6. Local Economic Development
7. Diverse Sectors
The specific definition and categorization of small-scale industries can differ from one country to another and
may be subject to government regulations and policies aimed at promoting and supporting small businesses.
These policies can include incentives such as tax benefits, subsidies, and financial assistance to encourage the
growth and development of small-scale industries, as they are often considered vital for economic growth and
employment generation. Small-scale industries are considered essential for economic diversification and
inclusive growth, particularly in developing countries. They help distribute economic benefits across different
regions and communities and promote self-employment and entrepreneurship. However, they may face
challenges such as limited access to resources, markets, and competition from larger enterprises. The specific
definition and categorization of small-scale industries can vary from one country to another and may be subject
to government policies and regulations.
Detailed study on a Small-Scale foods manufacturing industry
Objectives
The objectives of small-scale industries (SSIs) can vary depending on the specific business, industry sector, and
the goals of the entrepreneurs or business owners. However, there are several common objectives that many
SSIs aim to achieve:
1. Employment Generation: One of the primary objectives of SSIs is to create job opportunities,
particularly in rural and semi-urban areas. By providing employment, SSIs contribute to reducing
unemployment and underemployment rates.
2. Income Generation: SSIs aim to generate income for business owners, employees, and the local
community. This income supports economic development at both the individual and community levels.
3. Poverty Alleviation: SSIs often operate in regions with higher levels of poverty. They play a crucial
role in poverty alleviation by offering livelihood opportunities to people who may otherwise have
limited economic prospects.
4. Local Economic Development: SSIs can stimulate local economic development by promoting
economic activities within a region. They contribute to the growth of local markets and support the
development of ancillary businesses and services.
5. Innovation and Entrepreneurship: Many SSIs are founded by entrepreneurs and innovators who seek
to bring new ideas, products, or services to the market. Encouraging entrepreneurship and innovation is
a key objective.
It's important to note that these objectives are not mutually exclusive, and many SSIs may have a combination
of these goals. Additionally, the specific objectives of an SSI can evolve over time as the business grows and
adapts to changing market conditions and opportunities.
Detailed study on a Small-Scale foods manufacturing industry
Scope
Manufacturing: Small-scale industries are involved in the production of a wide range of goods, including
textiles, food products, handicrafts, chemicals, electronics, machinery parts, and more. They often focus on
niche markets, specialized products, or customized goods.
1. Services: Beyond manufacturing, SSIs can also operate in the service sector, offering services such as
retail, repair, maintenance, consulting, IT services, hospitality, healthcare, and education. These businesses
provide essential services to local communities.
2. Agro-Processing: Small-scale agro-processing industries are engaged in activities like food processing,
dairy, and small-scale farming. They add value to agricultural products and contribute to food security and
rural development.
3. Handicrafts and Cottage Industries: Artisans and craftspeople often operate small-scale enterprises,
producing handmade and unique products like pottery, textiles, jewelry, and home décor items. These
industries preserve cultural heritage and traditions.
4. Technology and Innovation: Some SSIs focus on technology-driven products and innovations. They may
develop software, hardware components, or innovative solutions to address specific market needs. The
future trends of small-scale industries (SSIs) are likely to be influenced by various factors, including
technological advancements, changing consumer preferences, economic conditions, and environmental
considerations. While it's challenging to predict the future with certainty, several trends are expected to
shape the landscape of SSIs in the coming years:
5. Digital Transformation: SSIs are increasingly adopting digital technologies to streamline operations,
reach a wider audience, and improve customer experiences. This includes the use of e-commerce
platforms, digital marketing, and cloud-based solutions for business management.
6. Eco-Friendly and Sustainable Practices: Growing environmental awareness is leading SSIs to adopt
sustainable and eco-friendly practices. This includes reducing waste, using renewable energy sources, and
producing environmentally responsible products.
7. Customization and Personalization: Consumers are increasingly seeking personalized and unique
products and services. SSIs that can offer customized solutions are likely to thrive in this environment.
8. Local and Artisanal Products: There is a rising demand for locally sourced and artisanal products. SSIs
that focus on quality, craftsmanship, and local sourcing can tap into this trend.
Future Trends
The future trends of small-scale industries (SSIs) are likely to be influenced by various factors, including
technological advancements, changing consumer preferences, economic conditions, and environmental
considerations. While it's challenging to predict the future with certainty, several trends are expected to shape
the landscape of SSIs in the coming years:
1. Digital Transformation: SSIs are increasingly adopting digital technologies to streamline operations,
reach a wider audience, and improve customer experiences.
2. Customization and Personalization: Consumers are increasingly seeking personalized and unique
products and services.
3. Local and Artisanal Products: There is a rising demand for locally sourced and artisanal products.
SSIs that focus on quality, craftsmanship, and local sourcing can tap into this trend.
4. Health and Wellness: SSIs related to health, wellness, and organic products are expected to continue
growing as consumers prioritize health-conscious choices.
5. Digital Payments and FinTech: The adoption of digital payment solutions and financial technology
(FinTech) is on the rise. SSIs may need to adapt to these payment trends to offer convenience to
customers.
Detailed study on a Small-Scale foods manufacturing industry
6. E-commerce Expansion: The growth of e-commerce is likely to continue, and SSIs can benefit by
expanding their online presence and exploring new markets through online sales channels.
7. Automation and AI: Automation and artificial intelligence (AI) technologies are becoming more
accessible. SSIs may use these tools to improve efficiency, reduce costs, and enhance customer service.
8. Cybersecurity: As digital adoption increases, SSIs must prioritize cybersecurity to protect sensitive data
and maintain customer trust.
Introduction 1.2
MTR FOODS
MTR Foods is a food products company based in Bengaluru, India. The company manufactures a range of
packaged foods including breakfast mixes, ready to eat meals, masalas and spices, snacks, and beverages.
It is expected that the market will grow annually by 9.59 percent between 2022 and 2027. In the ready-to-cook
and ready-to-eat category, MTR Foods enjoys a market share of between 55 percent and 65 percent. In the
parotta category, iD Fresh Food enjoys a market share of between 80 percent and 85 percent.
Mtr Foods Private Limited's operating revenues range is Over INR 500 cr for the financial year ending on 31
March, 2022. It's EBITDA has decreased by -11.04 % over the previous year. At the same time, it's book
networth has increased by 4.63 %.
2. Authentic Indian Flavors: MTR Foods is known for its commitment to preserving the authentic flavors
of Indian cuisine. There is a significant demand for high-quality, traditional Indian food that tastes like
homemade cooking, especially among people living away from their home regions.
3. Variety: MTR Foods offers a diverse range of products, from breakfast items to snacks and desserts.
This variety caters to different tastes and preferences, allowing consumers to enjoy a wide range of
Indian dishes without the need for extensive cooking.
4. Consistency: MTR Foods products are known for their consistent quality. Consumers rely on the brand
to deliver the same taste and quality every time they purchase a product, reducing the risk of culinary
disappointments.
5. Globalization: As Indian cuisine gains popularity around the world, there is a growing need for
convenient and authentic Indian food products in international markets. MTR Foods can satisfy this
demand by exporting its products or setting up operations abroad.
6. Cultural Preservation: MTR Foods plays a role in preserving and promoting traditional Indian recipes
and culinary heritage. It helps maintain cultural connections and traditions, especially for those living
outside India.
7. Emergency and Travel: MTR Foods products are often preferred during emergencies, travel, and
camping trips when access to a full kitchen is limited. They serve as convenient meal options in these
situations.
8. Nutritional Value: MTR Foods can meet the nutritional needs of consumers by offering products with
specified nutritional profiles. This is important for individuals who require specific dietary
considerations.
9. Special Occasions: MTR Foods also caters to consumers looking for easy-to-prepare options for special
occasions, festivals, and celebrations when traditional Indian dishes are a must.
10. Food Safety: MTR Foods adheres to quality and safety standards, ensuring that its products are safe to
consume. This reassures consumers who are concerned about food safety and hygiene.
11. Innovation: The company's commitment to innovation allows it to introduce new and exciting products
that align with changing consumer preferences and food trends.
Support for Special Occasions: MTR Foods products are often used during special occasions, festivals, and
celebrations when traditional Indian dishes are a must. They offer an easy and reliable way to prepare festive
meals.
CHAPTER- 2
History
MTR Foods, short for Mavalli Tiffin Rooms, is a renowned and iconic food brand that has left an indelible mark
on the culinary landscape of Bangalore, India, and beyond. Founded in 1924 by the Maiya family, MTR Foods
has become synonymous with authentic South Indian cuisine and has evolved from a humble eatery to a global
food conglomerate. Signature Outlets
Launched in April 2004, Namma MTR, or Our MTR as we call it, combines all the delights of MTR Foods
under one roof!
Namma MTR made its first appearance at KR Road in Bengaluru.
Namma MTR truly brought the spirit of MTR Foods straight to the
street and soon became a landmark on KR Road.
It was designed to be a one-stop-shop for every consumer meal
occasion.
The founders of MTR Foods, also known as Mavalli Tiffin Rooms, are
the Maiya family. The Maiya family played a pivotal role in
establishing and nurturing this iconic South Indian food brand. Here is
some information about the key founders of MTR Foods:
Yagnanarayana Maiya: Yagnanarayana Maiya is often credited as the driving force behind the inception of
MTR Foods. He, along with his brothers, laid the foundation for what would become one of India's most
renowned food companies. Yagnanarayana Maiya was known for his vision and commitment to offering high-
quality and authentic South Indian cuisine to the people of Bangalore.
Parameshwara Maiya: Parameshwara Maiya was another instrumental figure in the establishment of MTR
Foods. Alongside his brothers, he actively participated in the day-to-day operations of the restaurant and
contributed to the brand's success by maintaining its traditions and quality standards.
Ganappayya Maiya: Ganappayya Maiya was another co-founder who played a crucial role in the early years
of MTR. His dedication to preserving authentic South Indian recipes and ensuring the highest standards of
hygiene contributed to the brand's reputation for excellence.
The Maiya family's collective efforts and commitment to maintaining the authenticity and quality of South
Indian cuisine helped MTR Foods grow from a small tiffin room in Bangalore to a globally recognized food
brand. Their legacy continues to live on, with MTR Foods remaining a symbol of South Indian culinary
excellence and tradition.
One of the key factors that set MTR Foods apart is its unwavering commitment to preserving the authenticity
and quality of South Indian flavors. The brand is known for using premium ingredients and adhering to time-
tested recipes that have been passed down through generations. This dedication to culinary excellence has
earned MTR Foods a loyal following of food enthusiasts not only in Bangalore but also across India and even in
international markets.
Detailed study on a Small-Scale foods manufacturing industry
MTR Foods has gone beyond its original restaurant roots to offer a wide range of packaged foods, including
ready-to-eat meals, spices, instant mixes, and snacks. These products allow people to savor the taste of South
Indian cuisine in the comfort of their homes, making MTR Foods a household name.
In Bangalore, MTR Foods continues to have a significant presence, with multiple outlets and restaurants
offering a delightful array of South Indian dishes. Whether you're looking for a quick breakfast on the go or a
leisurely dining experience, MTR Foods in Bangalore has something to satisfy every palate.
As a culinary institution deeply rooted in tradition yet always embracing innovation, MTR Foods remains a
symbol of the rich food heritage of Bangalore and a testament to the enduring love for South Indian cuisine in
the city and beyond.
These are just a few examples of the signature dishes and products that have made MTR Foods a household
name in India and around the world. MTR Foods' commitment to quality and authenticity ensures that each
of these products offers a taste of South India that is both convenient and true to tradition.
In India:
Grocery Stores: MTR Foods products are commonly available in supermarkets, grocery stores, and
hypermarkets throughout India. Look for them in the packaged foods section or in the aisle dedicated to
ready-to-eat and instant foods.
Online Retailers: You can purchase MTR Foods products from various online retailers and e-commerce
platforms in India, such as Amazon, Flipkart, BigBasket, and the official MTR Foods website.
Specialty Stores: Some specialty Indian food stores may also carry a selection of MTR products.
International Markets:
Indian Grocery Stores: In countries with a significant Indian expatriate population, MTR Foods
products can often be found in Indian grocery stores or specialty ethnic food stores.
International Supermarkets: In larger cities and areas with diverse populations, you may find MTR
products in international supermarkets that cater to various ethnic cuisines.
Online Retailers: Many international online retailers may offer MTR Foods products for purchase and
delivery to your location.