Factor affecting plant location

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Plant Location

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Factor affecting plant location

  1. 1. Factors Affecting Plant Location of Food Processing Presented by:- Sujeet Pandit
  2. 2. What is Plant Location ???
  3. 3. A good location will reduce the cost of production & distribution to a large extent. The reduction of cost of distribution helps in elevating either the competitive strength or the profit margin of business. If the site selection is not done properly, all the money spent on factory building, machinery & their installation will go in waste & the owner has to suffer great loss.
  4. 4. Factors affecting Plant location of food processing Selection of region Selection of community Selection of Plant Site
  5. 5. Selection of region -- Factors  Availability of raw materialsAvailability of raw materials  Transport facilitiesTransport facilities  Nearness to marketNearness to market  Suitability of climateSuitability of climate  Availability of powerAvailability of power  Govt. policyGovt. policy Competition between statesCompetition between states
  6. 6. S E L E C T I O N C O M M U N I T Y of  Civic amenities for workers  Existence of complementary & competing industries  Disposal of waste  Personal factors  Momentum of early start  Local taxes & restrictions  Availability of water & fire-fighting facilities  Finance & research facilities  Availability of labour F A C T O R E S
  7. 7. Selection of Plant Site -- Factors 1) Price of land 9) Flood & drought conditions2) Type of soil 12) Attitude of local people 6) Availability of amenities 13) Technology know-how 14) Commercial services 5) Communication 4) Expansion potential 3) Waste disposal 10) Right & title of the land 11) Good scenery 7) Health of the locality 8) Statutory consideration

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