GLOBAL INSTITUTE OF TECHNOLOGY, JAIPUR

Department of Electronics & Communication Engineering

A Presentation On
“ Approaches To Industrial Location”
Submitted To: Submitted By:
Rishabh Sharma Bhanu Kumar
Asst. Professor Roll No. 16EGJEC004
ECE Dept
 What is Industry?

 An industry is a sector that produces goods or

related services within an economy.
 It is the organized action of making of goods and
services for sale to gain profit
 Economic activity concerned with processing of
raw materials and manufacture of goods in
factories

Types Of Industries
 Industry can be categorized in following level
1. Small Scale Industry - Small scale industries (SSI) are those industries in which
a small business which sells goods and/or services to a local area or a
local market. For Example: The grocery store in locality that sells groceries,
FMCG(Fast Moving Consumer Goods), sometimes
dairy products and fruits and vegetables etc.
2. Medium scale industries - SSI are those industries in which manufacturing,
providing services, productions are done on medium level. For example :
Chocolates, toothpick, water bottles, small toys, papers, pens etc.
3. Large Scale Industries - Industries which requires huge infrastructure and
manpower with an influx of capital assets are Large Scale Industries. Large
scale industries, usually, produce capital and basic goods (instruments,
machines, chemicals etc.)
 Location Theory

 When attempting to predict where business will or should be located we should

consider these basic assumptions

 That business owners want to maximize their advantages over competitors;

 That they want to maximize their profits
 That they will take into account variable costs such as energy supply, transport
costs, labor costs, etc.
Consideration Of Factors Of Location

 There are mainly following general factors which are

relevant to all the industry:
1) Transportation
2) Location
3) Labor
4) Raw material
5) Land and Environment
6) Government Policies
7) Markets
8) Energy Sources
 Factors Effecting Industrial Location


1. Transportation – The Transportation cost should be minimum considering all
factors related to it
2. Location – The location should be Least Cost ,Sales-Maximizing and Maximum
Profit Location
3. Labor – The labor should be easily available corresponding to the location of
Industry with considering all factors
4. Raw Material – The material to be processed should be minimum in transportation
costs and good in quality
5. Land and Environment – The cost of land and surrounding environment should be
suitable according to the type of industry
6. Government Policy – The government policies should be kept in sight as they can
be useful with respect to all factors.
 Thank You !