Cement Plant Setup Guide
How to choose best location for Cement Plant
Decision regarding setting up of cement plant is very crucial and one must consider different factors before you zero down on the optimum location. Setting of this industry involves huge investment and cash flows over longer period of time. Hence one needs to be very cautious while finding the best location for cement plant setup. The location wise demand and supply, transportation cost, labor cost etc all need to be considered.
Let us understand these factors in detail:
- Regional demand and supply: Every region has different supply and demand figures. For example in Northern and Eastern India, the demand is high than the Southern and Western India region.
- Availability of raw materials: Different components are required for production of cement. Hence look for location which provides easy availability of different ingredients in bulk at economical prices. Most of the cement factories are generally located within 20 kms of deposits of limestone so that the fuel and transport cost of low. Some other raw materials whose availability should be near are gypsum and clay. Availability of water is also a significant factor for production of cement.
- Production cost and profit prospects: There are different kinds of cost involved in any industry: variable and fixed. The variable cost is very significant since it is affected by the transport cost, labor cost and availability of raw materials.
- 4. Management Interest: Management’s interest is also one of the vital factors who selecting the best location for setting cement plant. If the management has nation-wise industrial interest, then this factor would demand attention.
- 5. Government Policy: The industry needs to depend on government for some ingredients like limestone. So the lease, encouragement of government, facilities offered by government for setting up cement plant etc also influence the location.
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