This document discusses factors that influence the location of industrial plants. It defines plant location as choosing the region and specific site for setting up a business or factory. Key factors that influence plant location decisions include availability of raw materials, transportation access, proximity to markets, labor supply, infrastructure like power and water, and natural conditions. The objectives of selecting an optimal location are to minimize costs while maximizing social gains and ensuring long term advantages like low production costs.

1. Plant location
&
Factors influencing location
UIPS
Panjab University, Chandigarh
Submitted to :-
Dr O.P. Katare
Presented by :-
Sunil Bharti
Satyam Raj

2. Agenda
 Introduction
 What is plant location ?
 Objectives (selecting plant location)
 Selection criteria
 Factors influencing location

3. Introduction
 Plant location decision are very important because once the plant is located
at particular site then the organisation has to phase the pros and cons of the
initial decisions.
 Plant location refers to the choice of the region where men,material money ,
machinery and equipment's are brought together for setting up a business or
factory.
 A plant is a place where the cost of the product is kept to low in order to
maximize gain.

4. Contd…
 Identifying an ideal location is very crucial. It should always maximize the net
advantage must minimize the unit cost of unit and production.
 If plant is placed in a potentially satisfactory location then it can fulfil the
objectives smoothly in long run.
 If the location is poor it does not give the expected result due to different
different problems.

5. What is Plant location ?
 Every entrepreneur is faced with the problem of deciding the best site for
location of his plant or factory.
 Plant location refers to the choice of region and the selection of
particular site for setting up business or factory.
 It is a strategic decision that cannot be changed once taken.

6. Objectives :- (selecting proper location)
 To minimise cost
 Least risk and maximum social gain
 Should be a place of maximum net advantage
 Discovery of raw material
 Additional facilities

7. Selection Criteria
1. Natural and climatic conditions
2. Availability and nearness to the sources of raw material
3. Transportation should be available easily
4. Access to market should be easy
5. Supply of labour
6. Disposal of waste.
7. Constant power supply
8. Proper water supply
9. Safety requirements
10. Water supply etc.

8. Factors influencing plant
location
Plant location
Good
industrial
relation
Availability of
skilled worker
Social
infrastructure
Law and order
situation
Availability of
infrastructure
facilities

13.  https://www.academia.edu/32716185/LESSON_7_PLANT_LOCATION_AND_LAY
OUT
 https://www.yourarticlelibrary.com/industries/location-selection/plant-
location-11-factors-that-influence-the-selection-of-plant-location/41072