Difference between a Factory and Industry
Husne Mubarak
(Querist) 17 March 2011
This query is : Resolved
Respected Sir,
I would like to know what are the basic differences between a factory and industry.
Thank you.
R.Ramachandran
(Expert) 17 March 2011
Factory is a building or buildings where manufacturing processes are carried out.
The term industry refers toa branch of trade or manufacture. For e.g. plastic industry, paper industry, rubber industry etc.
The above are general meanings of the respective terms.
In case you want to know the definition of these terms in respective acts like Factories Act, Industrial Dispute Act etc., you have to refer to those specific acts.
Kirti Kar Tripathi
(Expert) 18 March 2011
Normally industry and factory can defined as below
Industry A basic category of business activity. The term industry is sometimes used to describe a very precise business activity (e.g. semiconductors) or a more generic business activity (e.g. consumer durables). If a company participates in multiple business activities, it is usually considered to be in the industry in which most of its revenues are derived.
Factory is a building or group of buildings with facilities for the manufacture of goods.any place producing a uniform product, without concern for individuality:
In legal sense both are defined in respective Act i.e. Industrial Disputes Act and Factories Act. the same are being produced herein below
Section 2(j) "industry" means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, -
(i) any capital has been invested for the purpose of carrying on such activity; or
(ii) such activity is carried on with a motive to make any gain or profit, and includes –
(a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1949);
(b) any activity relating to the promotion of sales or business or both carried on by an establishment, but does not include –
(1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one.
Explanation : For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); or
(2) hospitals or dispensaries; or
(3) educational, scientific, research or training institutions; or
(4) institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; or
(5) khadi or village industries; or
(6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or
(7) any domestic service; or
(8) any activity, being a profession practised by an individual or body of individuals, if the number of persons employed by the individuals or body of individuals in relation to such profession is less than ten; or
(9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten;
Note However, this definition has not been enforced as yet and earlier definition is still continuing i.e’industry means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or avocation of workmen.
Factory
Section 2 (m) "factory" means any premises including the precincts thereof-
(i) whereon ten or more workers are working, were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
(ii) i) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so arried on,-
but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952),] or a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place
Explanation.--For computing the number of workers for the purposes of this clause all the workers in different groups and relays in a day shall be taken into account Explanation. II.--For the purposes of this clause, the mere fact that an Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to make it a factory if no manufacturing process is being carried on in such premises or part thereof;
