INCLUDES HOW TO SELECT THE LAND LOCATION, CONSTRUCTING A BUILDING, INFRASTRUCTURE FACILITIES AND GETTING LICENSE FROM THE AUTHORITIES

1. How to Start a Business? -for an
entrepreneur
R.SUBHA,
ASSISTANT PROFESSOR

2. 1. Plant Location
Plant location has a vital effect on the success and failure of the operation of an
industrial plant - concerned with the desire of maximum operative economy and
effectiveness.
According to words of Lundy - total manufacturing cost may vary as 10% simply by
virtue of the choice of location.
To reap maximum benefit selection of right location is to be considered.

3. Need for Plant Location
1. Must when a new enterprise is to be established.
2. Needed for an existing enterprise when extension is proposed.
3. When present location is to be changed to a better location.
4. When new branch is to be established plant location is vital.
5. When existing factory is not in a position to get renewed of lease.
6. An appropriate location enables an undertaking to operate smoothly, efficiently
and with the minimum cost.
7. Wrong location leads to wastage in efforts and talents of the promoters which will
result in great loss.

4. Primary Factors of Plant Location
1. LAND :
● Entrepreneur Have To Select The Land Carefully.
● Type And Area of Land Must Be Given Attention.
● Land should be sufficient not only for present requirement but also for the future
expansion.
● In addition to factory and office buildings, land is needed to construct residential
quarters for the staff and workers.
● Government establishes industrial estates in sub - urban centres.
● Industrial estate - group of factories constructed with the facilities of bank, post office,
electricity, transport, water etc.,

5. 2. BUILDINGS
● Entrepreneur has to decide upon the right type of building suitable to the factory.
● Manufacturing buildings should be capable of controlling the conditions with
reference to heat, light and humidity and circulation of air.
● Buildings must ensure the safety, comfort and health of workers and protect
machineries from damages by weather.

6. Single Storey Building - has ground floor only - known as
horizontal building.
Merits :
1. Cost of construction per square feet is low.
2. It allows extension in any direction - suitable for expansions.
3. Ventilation and natural lighting are satisfactory.
4. Flexibility of layout is great.
5. Supervision and control of the manufacturing process is easy.
Limitations :
1. As large area of land is needed - cost of land will be high.
2. Difficult to change the direction of hot air into a horizontal path.
3. Cost of moving materials will be high.

7. Multi - Storey Building - has several floors in addition to the
ground floor - vertical building
Merits:
1. Land requirement is less and so cost of land is also less.
2. Facilitates the overhead storage.
3. Suitable for heavy manufacturing units.
4. Common ducts can be used for heating and thus heating cost is low.
5. Upper floor is cleaner than ground floor.

8. Demerits:
1. Foundation must be very strong - otherwise it will
result in danger.
2. Cost of construction is very high.
3. Sufficient natural light is not available.
4. Changing of machinery from one floor to another is
very difficult.
5. It increases the time and cost of moving materials.
6. It results in high cost of supervision.

9. 3. Shape of the Building
1. Ceiling
a. Flat ceiling - NO NATURAL LIGHTING AND VENTILATION.
b. Monitary Type - ventilation and lighting - inexpensive.
c. Sawtooth roofing with windows - unifor light distribution.
2. Floor
a. Pleasant and easy to clean.
b. Strong enough to bear the load of movements of men and materials.
c. Cost of maintenance, wear and tear - minimum
3. Lighting
a. Good lighting essential for factory and office buildings
b. Reduce eye strain and accidents.
c. Lighting system should ensure proper distribution and diffusion.
d. Not have glaring effect.

11. 4. Ventilation
● Proper ventilation as per factories act.
● Should supply air at proper temperature.
● Free from dust and noxious gases.
5. Fire Prevention
● Factory and buildings should designed to prevent fire.
● Fire proof walls, doors, sprinklers and hose system.
● Give orientation to employees about prevention of fire accidents and
emergency steps.
● Adequate entrance for fireman and exits for employees should be planned.
6. Provision of facilities
● Amenities to employees -first - aid, water, canteen, rest room, lunch room,
parking, toilet, libraries.

12. 7. Water
● Modern industries need water for production purposes.
● Drinking and manufacturing process.
8. Power
● Fuel and power is also important for factors location.
● Power supply and electricity generation must be considered.
9. Machinery purchase on basis or credit basis
10. Man- power: cheap labour - hereditary skill
11. Infrastructure facilities: floor, space, water facilities, electrical, drainage, various
services.

13. 4. LICENSING
A license or licence is an official permission or permit to do, use, or own something.
●A license can be granted by a party to another party as an element of an agreement between
those parties.
● Entrepreneur once decided about the product for manufacturing, he has to obtain
the required license.
● He has to apply for the registration of the industrial unit.
● For small scale industries, one must obtain provisional S.S.I registration certificate.
● This provisional certificate is issued for one year and it may be renewed for 2
periods of 6 months each.
● If entrepreneur still finds it difficult to start the unit due to
external constraints, extension period may be extended.

14. REQUIREMENTS FOR LICENSING
1. Select a plot in a specified area.
2. Apply for a shed in an industrial estate.
3. Apply for licence from the concern Corporation/Municipality.
4. Apply for electricity connection either for low tension or high tension.
5. if the load power is between 75 Horsepower and 130 Horsepower the consumer
has the option to avail either LT supply or HT supply.
6. If the load exceeds 130 HP the unit is come under HT consumer.

17. LICENSING AUTHORITIES
1. District Industries Centre - Registration for producing any item.
2. Commissioner of corporation/
Panchayat Union - Production in places other than industrial
estate.
3. Pollution Control Board - Pollution Control.
4. Tamil Nadu Electricity Board - Power Supply.
5. Commercial Tax Office - Registration under state.
6. Central Excise - Registration under Central Excise Act.
7. TN state Drug Control Administration - Manufacture of Drugs and Cosmetics.
8. District Health Office - Industries using water.
9. Directorate of Food Vegetable
Preservation - Manufacturing of Food and Edible items.
10. Controller of Explosives - Units covered under Explosives and
Firearms Act.