SITE SELECTION

(PLANT LOCATION)

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 Nature of Location Decision

 Importance of Plant Location

 Reduce the cost of production
 Suffer a great loss
 Fixes physical factors
 Determines the nature of investment costs and the
level of many operating costs
 Government plays role
 Bad location can bankrupt a company
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 Dynamic nature of Plant Location

 Choice of site for Location

 Selection of the region
 Selection of the locality
 Selection of actual site

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Factors affecting site selection
 Availability of Raw Material
 Proximity to markets
 Availability of labor
 Transport and Communication Facilities
 Availability of Power and Fuel
 Climate Conditions
 Availability of Water
 Ancillary industries
 Financial and other aids
 Business and Commercial Facilities

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 Industrial Estates

 Comparison of Locations – Urban Vs Rural

 Sub – urban Area

 Economic Survey of Site Selection

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THANK YOU!