Location Feasibility Study : Selecting New Site for Establishing New Setup in India

What is a Location Feasibility Study?

A Location Feasibility Study is an analysis conducted to determine the viability of a proposed site for a specific purpose such as:

1. building a new facility,
2. opening a retail store,
3. setting up an office,
4. establishing a new manufacturing plant, or
5. setting up new warehouse location, etc.

This study evaluates various factors to assess whether the location will meet the requirements and contribute to its success.

Key Parameters Covered in a Location Feasibility Study

Key parameters typically considered in a Location Feasibility Study for selecting a site include (but are not limited to these):

• Demographic Analysis: Examines the population characteristics in the area, including age, income, education levels, and population growth trends.
• Market Analysis: Assesses the demand for the products or services that will be offered at the location. This includes analyzing competition, customer base, and market saturation.
• Economic Factors: Considers the economic environment of the area, such as local economic conditions, employment rates, and the presence of key industries.
• Cost Analysis: Evaluates the costs associated with the location, including real estate prices or rental rates, taxes, utilities, and other operational expenses.
• Accessibility and Transportation: Looks at the ease of access to the location for customers, employees, and suppliers. This includes transportation infrastructure, traffic patterns, and proximity to major roads and public transport.
• Regulatory and Legal Factors: Investigates zoning laws, building codes, environmental regulations, and other legal requirements that could impact the feasibility of the location.
• Infrastructure: Assesses the availability and quality of essential services and infrastructure, such as water, electricity, internet, and waste management.
• Environmental Impact: Evaluates the environmental implications of developing the site, including potential impacts on local ecosystems and compliance with environmental regulations.
• Community and Lifestyle: Considers the quality of life in the area, including schools, healthcare, recreational facilities, and overall community vibe, which can impact employee satisfaction and retention.
• Risk Assessment: Identifies potential risks associated with the location, such as natural disasters, crime rates, and political stability.

Importance of a Comprehensive Location Feasibility Study

A comprehensive Location Feasibility Study helps organizations make informed decisions by providing a detailed understanding of the advantages and disadvantages of a particular site. It ensures that the chosen location aligns with strategic goals and operational needs.

How MBG can support in your location feasibility study

MBG’s 360-degree coverage ensures a detailed assessment of critical, objective, and subjective factors. For insights on overall business and project feasibility, explore our Business Feasibility Study

• Parameter Analysis: MBG conducts detailed assessment on critical, objective and subjective factors relevant for the setup of new plant.
• Legal & Regulatory Perspective: MBG evaluates government schemes, industrial policies, environmental laws/regulations, licenses/registrations, etc.
• Direct Tax Perspective: MBG evaluates incentives, exemptions, tax implications, registrations, books of accounts to be maintained, tax compliances.
• Indirect Tax Perspective: MBG evaluates incentives, exemptions, tax implications, registrations, books of accounts to be maintained, tax compliances.

MBG’s Approach and Methodology

MBG conducts detailed internet research categorized into case-specific keywords based on core requirements of the location. The specific keywords are basically designed to cater parameter analysis bifurcated in three specific categories:

Critical Factors:

Specifically, these factors are defined as a go/no-go criterion for location selection

Objective Factors:

These factors involve cost analysis considered for operation of the proposed setup i.e. new facility, new office, manufacturing plant, warehouse, etc.

Subjective Factors:

and These factors are ancillary for running the operations of the proposed setup i.e. new facility, new office, manufacturing plant, warehouse, etc.

MBG identifies the costs involved for the objective factors and evaluates the applicability of any incentives to be received. MBG uses a scientific method to arrive at the recommended location for setting up a plant. This method combines qualitative and quantitative factors through dimensional analysis to produce an integrated location measure.

Why Choose MBG

• MBG’s study report assists in finding the ideal location based on a deep understanding of the marketplace.
• MBG also presents some detailed info on key factors impacting location choice including raw material availability, staff residential facility, ease of doing business, among other important factors and parameters.
• We provide comparative analysis of different incentives/exemptions, tax implications and compliances, registration requirement and maintenance of documents.
• The Market Research Team at MBG benchmarks markets of particular locations to estimate objective costs and rates for project setup and operational expenses.
• Additionally, MBG also provide assistance in the due diligence of land title of identified lands to facilitate the client in avoiding conflict of ownership.