what is an ancillaries unit?

Question

ancillaries unit in relation to manuf. secter

Answer 1

1. Ancillary units are those,
who are developed, for
supplying RM & Compenents
to large units.

2. Technical guideance are
provided by the main manufacturers.

3. Problems faces by such units
are solved by Large manufacturers.

4. Free technical upgradations
of the technology are often provided
by the main manufacturer.

5. Free technical guidance is given
to develop new components & RM.

6. Ancilliaries are located near the
main manufacturers.

7. Regular buying is done by the
main manufacturers,

8. The cost advantages are very
important for a small unit.

9. Minimum cost on transportation

10. The small units also get the
benefit of excise rebates.

11. Many success stories are there
in India even.

12. The inventory carring costs
of the main manufacturers get
reduced considerably, thereby
being very competitive in the
market,

13. For exapmle- Maruti has more
than 255 anciliary unit s in and
around Gurgaon.

14. Reliance petro & Industries
have more than 1100 ancialliaries
around their factories.