Over the years, the manufacturing sector has seen exponential growth in India. Manufacturing businesses play a notable role in the fields of science, technology, medicine, art, etc. and provides a lot of opportunities to enthusiastic entrepreneurs. So, if you want to start a manufacturing plant, you have to consider a variety of factors. Setting up a manufacturing facility is a daunting but essential process that involves a lot of planning and resources. Besides, it determines the future growth of the industrial unit. Thus, for a successful setup process, you should not overlook the following factor.
1. Demand For Your Product
The first important factor is the demand for your product that you plan to manufacture. There has to be sufficient demand for your product in the current market. So, before you set up a manufacturing facility, you should conduct extensive research to understand the needs of your customers along with the type of audience you aim to target. In addition to this, you should have an awareness of how the business environment changes from time to time. Therefore, make sure that the product you select can cope with the changing needs of your target audience.
2. Business Location
Determining the manufacturing location is quite complicated and requires due diligence. Moreover, it is the location that could decide the success and failure of your manufacturing unit. Hence, it would be best to settle for something only if you are fully satisfied that the particular site is affordable and can reap several benefits in the coming years. Some of the things you need to keep in mind are – closeness to the market and raw material, availability of skilled workers, connectivity to the roads, railway station, airports, seaports, etc.
India SEZ plays a significant role in boosting the manufacturing growth of the country. It is one of the major real estate segments where most manufacturers prefer to set up their units. Further, the flood of new technological advancements and various amendments in the SEZ rules of 2006 can lead to more sector-specific and multi-product SEZ in India.
3. Setup Cost
Another vital determinant is the setup cost of your business. Unlike other companies, starting a manufacturing facility requires a considerable amount of capital. In addition to a suitable factory or workplace, you also need to purchase high-quality, specialized equipment and machinery. Further, you are also required to hire and pay a well-qualified staff who specialize in your type of manufacturing business.
4. Rules And Regulations
The rules and regulations are other critical factors you must consider. Every business or industry has its set of rules and regulations that you must be aware of. So, while researching your product, make sure to check the various standards and regulations associated with its manufacturing. Safety, health, and environmental rules are some of the most significant ones that you must comply with, especially while starting a manufacturing business where heavy equipment and dangerous chemicals are in use.
Setting up a manufacturing unit takes a lot of time, effort, and money. Even a small mistake or a wrong decision can drain out a lot of cash from your pocket. Thus, if the manufacturing unit is set up based on the above factors, it can result in more market opportunities and a profitable future.