This document discusses factors that affect plant location selection. It describes various location models and methods used for analysis, including factor rating, point rating, and qualitative factor analysis. Examples are provided of Johnson & Johnson and P&G setting up plants in Telangana, India. Key factors for plant location include supply of raw materials, transport access, labor availability, and minimizing overall production costs. Government policies also aim to encourage balanced regional development.

1. PLANT LOCATION
PRESENTED BY
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-THE WHITE COLLAR CREW

2. CONTENT
•
ANAS FAIZ - INTRODUCTION
SHAMIK RADIA -FACTORS AFFECTION PLANT
LOCATION
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ABID BIN JAVID -ADV AND DIS ADV OF PLANT SITE
SYED MUSHAMMIR AMJAD - METHIDS OF LOCATION ANALYSIS
HARSHIT RATHI -EXAMPLE OF PLANT LOCATION
ABDULLAHI -CONCLUSION

3. PLANT LOCATION
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• Plant location refers to the choice of region and
the selection of a particular site for setting up a
business or factory.
• An ideal location is one where the cost of the
product is kept to minimum, with a large market
share, the least risk and the maximum social
gain. It is the place of maximum net advantage
or which gives lowest unit cost of production
and distribution.

4. DEFINITION
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• A plant should be located at a place where
inhabitants are interested in it’s success, the
product can be sold profitably and production
cost is minimum – DR. Vishweshwarya
• A plant location is often result of compromise
among conflicting social, economic and
geographical conditions – Lansburg.

5. Plant location studies are conducted in
three phases :
• Regional factors ,
• Community factors , and
• Site factors
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6. Factors Affecting the Plant Location
• The location of an industry is determined by
taking into consideration the following factors:
• Primary Factors:
– Supply of raw materials
– Nearness to the market
– Transport Facilities
– Supply of Labour
– Availability of power
– Supply of Capital
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7. . Secondary Factors :
– Natural Factors:
– Government Subsidies and Facilities
– Personal Factors
• Miscellaneous Factors :
• Suitability of the land
• Disposal of waters
• Availability of Water and Fire-fighting Facilities
• Community attitudes
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8. SELECTION OF SITE
• Urban or City area.
• · Rural area.
• · Suburban area.
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9. Advantages of Urban area
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• Good transport facilities are available for the
movement of raw-materials and finished products
by rail and road and at times, by water and air.
• Banking and credit facilities available.
• Services of insurance companies are available in city
areas.
• Ample availability of skilled and unskilled workers.
• Educational, medical and recreational institutes
increase the amenities of lives in the city area .
• .

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Disadvantages of Urban or City
• The cost of land is verAy hriegha as compared to rural
areas
• Even at high cost, sufficient land is not available,
which puts constraints on the arrangement of
plants and machines. Sometimes multi-story
buildings are used which are not suitable for the
installation of heavy plant and machines
• Due to high standard of living in city area, the cost
of labour is relatively high
• Various types of taxes is levied in city areas. The
rates of taxes are relative high. Eg. Octroi is a typical
tax of the city area which is not levied in rural areas.

11. Advantages of Rural area
• As compared to the city area, the land is available at
cheaper rates.
• Large plots of the land area available which can be
developed for a factory sites, office buildings and
residential quarters. Horizontal arrangement of plant
machines in the vast areas of land is possible.
• Due to lower standard of living, the rates of labour are
relatively lower.
• As compared to the city area, the labour force is more or
less stable which reduces the rate of labour turnover.
• Slumps and dirty residence are not found in rural areas.
The rural areas is conducive to good health of workers.
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12. Disadvantages of Rural Area
• Transportation facilities are not available in good
condition and sufficient quantities.
• Storing and warehouse facilities are not available in
rural areas.
• Passenger transport facilities are not available, as
are available in city area.
• It is generally not easy to get skilled workers in rural
areas.
• Municipal facilities like water supply, drainage, fire-fighting
etc. are not available in rural areas.
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13. Advantages of Suburban Area
• Land is available at a cheaper rate as compared to
urban areas.
• Adequate land is available for future expansion unit.
• Infrastructure facilities like road, water supply,
drainage, banking, warehousing,.
• As city area is nearest, the skilled and unskilled,
both type of labour are available.
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14. Johnson and Johnson in telangana
US-based Johnson and Johnson (J&J) which makes
medical devices, pharmaceutical and consumer
packaged goods
Said it is setting up its largest Indian
manufacturing unit near Kothur in Mahabubnagar
district of Telangana with an estimated
investment of Rs400 crore in the first phase.
Spread over 48 acres, the proposed plant will produce
baby care and personal hygiene products including bath
soaps, powders and creams.
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15. The Mahabubnagar plant will be third manufacturing
plant of Johnson and Johnson in India.
The Mahabubnagar plant will help the company reach out
to the South India market, said Vikas Srivastava, managing
director, Johnson & Johnson Consumer (India).
Coming up on 48 acres, the plant will be operational from
2016 and will employ 1500 people. The plant will
manufacture hygiene and consumer goods products.
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16. The foundation stone for the J&J facility was laid by
Telangana chief minister K. Chandrasekhar Rao with J&J
represented by Vikas Srivastava, the managing director of
J&J Consumer (India).
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18. P&G IN TELANGANA
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• Global FMCG major Procter and Gamble on 18 sept
2014 opened its manufacturing plant In
Mahbubnagar district in Telangana
• P&G has invested $150 million in the first
phase.The plant stated to be their largest in Asia
has been set up with an outlay of Rs. 900 crore is
spread across a 170 acre site.

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21. Location Models
• 1. Factor Rating Method
• 2. Point rating Method
• 3. Qualitative Factor Analysis
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22. Factor Rating Method
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23. Point rating Method
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24. Qualitative Factor Analysis
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25. ERRORS IN SELECTION
• Lack of through investigation
• Personal likes and prejudices
• Reluctance of key executives
• Moving to congested areas
• Imagination
• Choice of community
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26. Government Control on Location of
Industries
• The objectives of state intervention and control
are:
• balanced regional development
• · To narrow down the gap of inequality of income
and wealth
• · To reduce the concentration of population in
city areas
• spread of industries reduces the chances of
heavy losses in war time.
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27. A journey on the path of sun
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28. What have we learnt?
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