Question

Explain the factors affecting the selection of plant location for sugar mills

Answer 1

there are few factors that Affects sugar mills. 
1) selection of region. we select appropriate region that have availability of water and electric supply, availability of raw material and transport facility etc.
2) Township selection. in this township availability of man power of required skill, competitive wages rate of worker.

3) After the area selection management deals with problem of building design. Design building that employee, material and infrastructure require protection.

Answer 2

Now let's discuss above factors affecting the location of a plant.1. Law and order situationPlant location must be at thatplace where law and order situation is in control.Entrepreneursgive a lot of importance to this factor while locating a business unit in any state or region. If a state has bad law and order situation, then the business must not be located within that state, unless it has otherimportant factors such as availability of heavy or bulky raw materials.2. Availability of infrastructure facilitiesPlant location which is selected must have proper infrastructure facilities. Without good infrastructure facilities, it will be difficult to do business efficiently. The infrastructure facilities are the backbone of all industries. Without it, business cannot be done.Crucial infrastructure facilities that help industries to grow:*.Transport and communications,*.Banking and insurance services,*.Regular fuel supply,*.Continuous supply of electricity and water, etc.3. Good industrial relationsPlant location must be at those places where goodindustrial-relations are maintained. Industrial relations become bad, because of militant and selfish trade unions. Entrepreneurs do not want tolocate their business at places where anti-social elements are rampant, although there are other favorable factors such as good infrastructure facilities, cheaplabor, etc.4. Availability of skilled workforcePlant location must be convenient and easily accessible to skilled workforce. Most businesses require skilled-labor force such as engineers, management experts, computer programmers, etc. The entrepreneurs must consider the availability of competent and skillful-workforce at a particular place to locate their business.5. Social infrastructurePlant location must have gooda social infrastructure. Thereis a need for social-infrastructure not only for employees but also for the development of their families. The availability of social-infrastructure will increase the employees' welfare.There must be suitable social infrastructure facilities like;*.Education institutions,*.Hospitals and health centers,*.Community centers like worship place, garden, meditation center, etc.*.Recreation facilities like theaters, clubs, communication facilities, etc.6. Investor friendly attitudePlant location must be in those states whose governments have an investor-friendly attitude. Government must give attractive incentives and concessions to those who start business units in their states. There must not be anybureaucratic control for starting a business.An investor-friendly attitudewill not only attract investment, but will also result in the overall development.7. Nearness to marketPlant location must be near a market. Every business unit depends on a market for selling its goods and services. The goods and services must reach the market on time, and it must be available to the consumers at a low price. Therefore, this factor is given importance while selecting location of a plant.Locating a plant near the market is preferred, when the product is fragile (easily breakable), perishable, heavy or bulky and when quick service is required.8. Nearness to raw-materials'sourcePlant location must be usuallynear to the source of raw-material. Raw-materials' costs are about 50% of the total cost. So, it is important in the business to get the raw materials in time and at a reasonable price. Therefore, a business must be located close to the source of raw material, especially in the case of “Gross Materials.”Gross Materialsare those which lose weight in the production process. Examples of Gross Materials are sugarcane, iron ore, limestone, so on.However, if the raw material is a “Pure Material,” then the business may be located awayfrom the source of raw materials.Pure Materialsare those which add their weight to thefinished product. Examples ofPure materials are cotton textiles, bakeries, silk fabrics,etc.9. Nearness to supporting industriesPlant location must be near its supporting industries and services. If it purchases spareparts from an outside agency, then these agencies must be located very close to the business. If not, the business will have to spend a lot of extramoneyon transport. It will also be difficult, to control the quality of the spare parts because of the distant location.10. Must meet safety requirementsPlant location must me