As per the Micro, Small and Medium Enterprises Development [MSMED] Act 2006 the definitions are as under:
Manufacturing Enterprises:
Enterprises engaged in the manufacture or production, processing or preservation of goods. It is further classified as under based on the original investment in plant & machinery [original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006].
- A Micro Enterprise [Manufacturing] is an enterprise where investment in plant & machinery does not exceed `25.00 lacs
- A Small Enterprise [Manufacturing] is an enterprise where the investment in plant and machinery is more than `25.00 lacs but does not exceed `5.00 crores
- A Medium Enterprise [Manufacturing] is an enterprise where the investment in plant and machinery is more than `5.00 crores but does not exceed `10.00 crores
Service Enterprises:
Enterprises engaged in providing or rendering of services. It is further classified as under based on the investment in equipment [original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006].
- A Micro Enterprise [Services] is an enterprise where the investment in equipment does not exceed `10.00 lacs
- A Small Enterprise [Services] is an enterprise where the investment in equipment is more than `10.00 lacs but does not exceed `2.00 crores
- A Medium Enterprise [Services] is an enterprise where the investment in equipment is more than `2.00 crores but does not exceed `5.00 crores
