INDUSTRY - MEANING
AND
CLASSIFICATION OF INDUSTRIES
Business activities are concerned with primarily two activities, i.e. production of goods & services and sale of goods and services. So, the activities which are concerned with production of goods and services are termed as Industry.
Meaning Of Industry -
Economic activities which are concerned with the conversion of resources, raw materials into useful or finished goods.
It involves processing or producing of goods, as well as breeding and raising of animals. There are other living organisms which plays a very important role in the development of economy, so their production, maintenance and breeding is also important which is performed under Industry.
The term industry is also used to mean group of firms producing similar or related goods.
Examples - Goods
TEXTILE INDUSTRY – GROUP OF FIRMS PORDUCING TEXTILE GOODS.
Raymond's, Vardaman Textiles, Arvind Textiles, Trident Ltd.
AUTOMOBILE INDUSTRY – GROUP OF FIRMS PRODUCING TWO WHEELERS, FOUR WHEELERS, PASSENGER VEHICLES, COMMERCIAL VEHICLES
- Tata motors, Bajaj auto, Ashok leyland, Maruti Suzuki India, TVS Motors.
ELECTRONIC INDUSTRY – GROUP OF FIRMS PRODUCING ELECTRONIC PRODUCTS
Havells India Ltd. , Bajaj Electronics, Philips Electronics, Bosch, Crompton Greaves
PHARMACEUTICAL INDUSTRY – GROUP OF FIRMS PRODUCING MEDICINES
-Lupin, Cipla, Sun Pharma, Cadila Healthcare, Glenmark
EXAMPLES - SERVICES
BANKING INDUSTRY – Group of banks providing banking services.
SBI, ICICI, IDBI, HDFC, PNB
INSURANCE INDUSTRY – Group of Insurance Companies providing Insurance Services
IFFCO TOKIO, LIC, STAR HEALTH, APOLLO MUNICH
EDUCATION & TRAINING INDUSTRY- Group of companies providing education and training services.
IGNOU, NIIT, EDUKART, DEXLER, BYJU’S
FINANCIAL SERVICES INDUSTRY- Group of companies providing credit and finance.
MUTHOOT FINANCE, BAJAJ FINSERV, HSBC, RBL.
TOURISM INDUSTRY –Group of companies providing tours and travels services.
MAKE MY TRIP, GOIBIBO, TRIVAGO, YATRA, MAHINDRA HOLIDAYS
HOSPITALITY INDUSTRY- Group of Hotels providing hospitality.
HYATT, TAJ HOTELS, TRIDENT GROUP, MARRIOT, RADDISON BLU, LEELA GROUP, OYO
IT & BPM – Group of companies providing IT, software services.
INFOSYS, TCS, WIPRO, ADOBE SYSTEMS
TELECOMMUNICATION INDUSTRY – JIO, AIRTEL, VI, BSNL.
Industries may be divided into THREE MAIN CATEGORIES-
1. PRIMARY INDUSTRY
2. SECONDARY INDUSTRY
3. TERTIARY INDUSTRY
PRIMARY INDUSTRY-
-It is concerned with extracting RAW MATERIALS so that they can be converted into useful goods.
-It is also concerned with reproduction and development of living organisms, plants.
-They provide natural resources and raw material to Secondary Industries to manufacture consumable products.
For Example,
I am a baker and bake breads, so what is the main ingredient for baking bread - Wheat flour and from where we would get the wheat flour at the very first place, from Wheat, So wheat farming is Primary Industry.
I need fuel for my car, so the very first process of making fuel is extracting crude oil from oil field, so here mining is Primary Industry.
Primary Industries are divided into two parts -
1. EXTRACTIVE INDUSTRY -
These industries extract or draw products from natural sources. Extractive industries supply some basic raw materials of geographical or natural environment. Products of these industries are usually transformed into many other useful goods by manufacturing industries. For example, farming, mining, lumbering, hunting and fishing operations.
2. GENETIC INDUSTRY -
Industries which are engaged in production and multiplication of plants and animals.
For e.g. Cattle Breeding, Animal Breeding, Poultry Farms, Earthworm Farming, Fish Hatching, Modern Forestry.
SECONDARY INDUSTRY -
-They are concerned with the resources or raw materials which have been already extracted by Primary Industries for further processing.
-These Industries process the resources or raw materials to produce goods for final consumption or for further processing by other Industrial Units.
-It requires manufacturing plants, factories, machinery, and energy for successfully converting the raw materials into usable products.
Secondary Industry is further classified into two parts-
1. Manufacturing Industry -
Manufacturing is the process of converting raw material and components into the final product to sell in the marketplace for public consumption.
-They bring out diverse finished goods by processing semi-finished goods or raw materials.
They are divided into four categories on the basis of method of operation of production-
-ANALYTICAL INDUSTRY
-SYNTHETICAL INDUSTRY
-PROCESSING INDUSTRY
-ASSEMBLING INDUSTRY
ANALYTICAL INDUSTRY-
Industry which separates different products/elements from same material is known as Analytical Industry.
EXAMPLES-
1. We can produce Gasoline, Petrol, Diesel, Kerosene from CRUDE OIL.
2. We can produce Wheat flour, refined flour, semolina, dalia from WHEAT.
SYNTHETICAL INDUSTRY-
It combines various ingredients to make a new product.
EXAMPLE-
PLASTIC +GYPSUM + CONCRETE + COAL = CEMENT
NYLON + POLYSTER + SPANDEX = SYNTHETIC FIBRE
FLOWERS + OIL + GRASSES + ALCOHOL = PERFUMES
PROCESSING INDUSTRY -
It involves a whole process & successive stages for manufacturing finished products. Once an output is produced it cannot be rolled back. For example, once it is produced, a soft drink cannot be broken down into its separate ingredients.
FOR EXAMPLE-
ASSEMBLING INDUSTRY-
It assembles different component and parts to make a new product.
EXAMPLE –
DISPLAY + MODEM + BATTERY + CHIP + DRIVE + CAMERA + SENSORS + SPEAKERS + O.S = SMARTPHONE
Similarly, Automobiles, T.V., COMPUTER are some of the examples.
2. CONSTRUCTION INDUSTRY
These industries are involved in construction of buildings, roads, bridges, tunnels, canals, infrastructure.
Goods cannot be transported from one place to another.
Engineering and Architectural skills are an important part.
Example - Larsen & Toubro Infrastructure Development
- Reliance Infrastructure Limited.
-Tata Projects Limited.
-DLF Limited
-Hindustan Construction Company
-Dilip Buildcon Limited
TERTIARY INDUSTRY -
It is also known as 'Service Industry'.
-They provide Service support to Primary and Secondary Industries to make the manufacturing process free from hindrances.
-They also ensure the free-flow of trading activities.
-They also serve final consumers as well.
-May be considered a part of commerce as they are auxiliaries to trade.
EXAMPLE- BANKING, INSURANCE, TRANSPORTATION, COMMUNICATION, WAREHOUSING, MEDIA, ADVERTISING, HOSPITALITY, LEGAL SERVICES, MANAGEMENT SERVICES.
Thanx
Isha Sareen
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