Near to customer – The transportation and other overheads are likely to increase with distance between plant and market.
Near to raw material – It will ensure regular supply of the raw material and reduce transportation cost.
Good transport facility – The region well connected with Rail, Road, Water and Air transport system is considered to be more appropriate for the location of the facilities.
Availability of power supply – The regular supply of the power ensures no stoppage in work.
Basic facilities – Basic facilities ensures quality of work life and attract the good labor.
Government Policies – Favorable government policies creates favorable atmosphere for the purpose of the establishment of industries.
Environmental considerations – Good climate and natural resources is important for the industries.
Easy availability of cheap land
Less construction cost
Availability of cheap, skillful and efficient labor
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