Large-Scale Industries | Characteristics, Types, Advantages and Disadvantages

What are Large-Scale Industries?

Large-scale industries represent the peak of heavy industrialisation and economic genius. The diverse types of enterprises prioritise the intersection of innovation, funds, and human innovation on an extraordinary scale. Large-scale industries generally consist of various other sectors, which include manufacturing, production, packaging, etc. Nowadays, various advanced technologies are also used to ease the above-mentioned processes. It also influences the global economy due to its large presence in or outside the country, generating employment wherever they have a presence. Although some problems arise due to the presence of large-scale industries, like the smaller industries do not get the recognition they need, so their products remain unnoticed, also there is a high chance of a monopoly, which means that the large-scale industry will capture most of the market with their product to gain the maximum profit.

Characteristics of Large-Scale Industries

As the Large Scale Industry is not limited to a specific category, they all share some similarities between them. They also have some distinctive characteristics which make them different from the small and medium-scale industries.

1. Global Presence: Large-scale industries are mostly globally available. Maybe their offices or centres are not present in a certain country, but their manufactured products are available, which marks their presence in foreign countries as well. In this way, these industries generate revenue, but also generate jobs for the local people.

2. Corporate Management: Usually, Large-Scale Industries are run by the Board of Directors, who are very qualified and have knowledge about the market or how to grow the industry and generate more revenue.

3. Large Audience: Large-scale industries generally target a huge amount of customers because they mark their presence globally. They always try to grasp any opportunity to increase their number of customers or generate more and more revenue. They always consider the feedback received and make their product more and more user-friendly to attract more customers.

4. Technically Advanced Employment: Large-scale industries mostly use the latest technologies available in the market, they also train their employees with them. By using the latest technologies, they need to find different ways to automate the business processes and improve their product to attract more customers or generate more revenue.

5. Employment Generation: Large-scale industries require a very large amount of workforce, due to which these industries generate a very large amount of employment.

6. Investment: Generally, some large-scale industries also invest their profits into other small-scale industries or medium-scale industries. They also invest funds in R&D (Research and Development) sectors, which are used to train their employees.

Types of Large-Scale Industries in India

India is also growing when it comes to having large-scale industries within the domestic boundaries. There are various types of large-scale industries present in India. Some of them include Cement Industry, Steel Industry, Jute Industry, IT Industry, Insurance and Finance Industry, Food Processing Industry, Sugar Industry, Paper Industry, Tea Industry, Automobile Industry, Engineering Industry, Cotton Industry, Tourism Industry, Banking Industry, etc.

Examples of Large-Scale Industries in India

• Tata Steel Ltd.
• Reliance Industries.
• Adani Group
• Goenka Group
• Lodha Group
• Godrej Properties

Advantages of Large-Scale Industries

1. Growth of Economy: Large-scale industries generate a very high amount of revenue, which contains foreign currency too. Due to this, it plays a very crucial role in the growth of the economy. Also, it requires heavy manpower, which is why it gives employment to a great number of workers.

2. Skill Enhancement: As Large-scale industries work with the latest technologies and machinery, they train their employees with the latest skills in the market, using which they can operate those machines. In this way, those employees enhance their skills and use them to solve complex problems and come out with new ideas.

3. More Investment: Usually, large-scale industries invest their earnings into smaller industries or buy shares of other companies, which makes the small industries fruitful and generates more revenue, which is better for the economy.

4. Economy at Large Scale: Large-scale industries generate the most revenue out of all the type of industries and plays a key role in the economy of the country at a very large scale. It also earns foreign reserves for the country in which it is situated due to its global presence.

5. Employment: Large-scale industries require very heavy manpower, due to which they employ a large number of candidates. Although automation is being used by companies to speed up the manufacturing process, there is still a need for manpower to operate those heavy machines.

6. Technological Advancements: Large-scale industries invest their profits in Research and Development purposes and train their employees with the latest technology available in the market. In this way, the employees become technologically advanced and can operate many technologically advanced machines.

7. Infrastructure Development: Development of Infrastructure is also a positive side of the large-scale industries. They invest in the betterment of transportation services like railways, roads, ports, airports, etc., to spread their presence across the globe.

8. Exportation: Large-scale industries have their presence all over the world, so they tend to export their products to gain profit in foreign currency. This way, these industries play a key role in establishing a good relationship with other countries.

9. Diversification: Large-scale industries do not stick to a single type or a single product, they experiment with various products according to the needs of the customers. This approach reduces the risk of the industry becoming solely dependent upon a single product or a single type of product.

10. Increased Standard of Living: Using the products manufactured by large-scale industries, consumers can increase their standard of living. The products are mostly possible due to the use of advanced technology and automation.

11. High Productivity: As large-scale industries produce everything at a large scale, faster and more efficiently, they tend to keep the prices low to attract more consumers. They can also handle large orders and deliver them faster.

12. Environmental Conservation: Environmental Conservation is only possible for large-scale industries when they tend to invest in sustainable practices to produce the goods. They mostly can adapt eco-friendly techniques to produce the products and reduce waste production, which eventually lowers the impact on the environment.

Disadvantages of Large-Scale Industries

1. Overmanufacturing of Items: As large-scale industries produce items in large quantities if they overproduce them when there is not enough demand in the market, the extra products get wasted. So, the entire money that was put into producing those products is also wasted.

2. Difficult to maintain Efficiency: It is often difficult to maintain the efficiency of a large-scale industry due to its huge amount of manufacturing. The machine used to produce the products must be upgraded, and the employees should be trained with the latest technology to keep efficiency high and produce products at a greater rate.

3. Monopoly: As large-scale industries have a huge storage of raw materials and a great number of cash flows, they produce valuable and useful products that generate huge revenue and play a key role in the economy, making them Monopoly firms. They get all the deals, their products are sold in huge amounts, they do advertising of products more and more, etc. Due to this, other small-scale industry, which is not that renowned gets trapped, and their products don’t get enough recognition.

4. Foreign Exports: Although it is a good sign that the products are getting foreign recognition and a large-scale industry is generating foreign currency, it also has a negative side. Mostly, all the valuable and fine products are being exported for a better price, and if there is any geo-political issue with the importing country and they stop importing the products, then that industry faces a huge backlash, which harms the economy.