PLANT LOCATION

PRESENTED BY

-THE WHITE COLLAR CREW

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CONTENT

•

ANAS FAIZ - INTRODUCTIONSHAMIK RADIA -FACTORS AFFECTION PLANT

LOCATION ABID BIN JAVID -ADV AND DIS ADV OF PLANT SITE SYED MUSHAMMIR AMJAD - METHIDS OF LOCATION ANALYSISHARSHIT RATHI -EXAMPLE OF PLANT LOCATIONABDULLAHI -CONCLUSION

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PLANT LOCATION

• 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.

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DEFINITION

• 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.

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Plant location studies are conducted in three phases :

• Regional factors ,

• Community factors , and

• Site factors

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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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. 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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SELECTION OF SITE

• Urban or City area.

• · Rural area.

• · Suburban area.

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Advantages of Urban area• 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

Area• The cost of land is very high 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.

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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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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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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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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 Mahabubnagardistrict 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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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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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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P&G IN TELANGANA• 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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Location Models

• 1. Factor Rating Method

• 2. Point rating Method

• 3. Qualitative Factor Analysis

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Factor Rating MethodTWCC

Point rating Method

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Qualitative Factor AnalysisTWCC

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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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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A journey on the path of sun

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What have we learnt?

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