Location Analysis - Wazir Advisors

Strategy > Textile and Apparel > Location Analysis

Location Analysis for Setting up a Garment Factory

Project Brief

One of the leading Indian denim manufacturer planned to expand its manufacturing activities. They engaged Wazir to identify a suitable location for setting up their manufacturing plant.

Project Objectives:

Core objective of the project was to find the most suitable location for setting up a garment manufacturing facility in Africa. The study was accomplished by answering the following questions for each of the targeted locations:

What is the availability of raw materials?
What is the availability of manpower and cost?
What is the availability, quality and cost of utilities?
What are the other costs associated?
How easy and fast is it to get administrative support?
What is industrial culture of location from garment factory perspective?
What is the most suitable location for setting up the unit in a particular state?

Deliverables:

Provided a detailed report comparing different states for the feasibility of setting up garment manufacturing facility covering:
1. Manpower requirement
2. Power cost and availability
3. Water requirement
4. Raw material cost and availability
5. Financial requirements
6. Land and dormitory requirement
7. Business and logistics infrastructure
Recommended the most suitable location based on the cost factors in each of the identified location and their impact on final profitability

Location Analysis for Textile Business

Background

Client is the single largest Central Public Enterprise in the textile sector under the Ministry of Textile, Government of India. They were planning to establish technical textile units in JV with reputed international players. Before finalizing any location for the JV unit, the potential international partner wanted to have certain information about the location like operational costs, manpower availability, logistical connectivity, etc. We assisted the client for conducting due diligence of purchased locations for establishing technical textile units.

Project Objectives:

The objective of this assignment was to conduct a comprehensive assessment of various locations of client’s purchased land to ascertain their suitability and attractiveness for establishing a technical textiles manufacturing unit. For this, following analysis was carried out:

Accessibility to logistics base, commercial sea and air ports
Logistics costs and time
Manpower cost and availability
Availability of infrastructural facilities
Raw material availability / linkages
Lead time for raw material procurement & delivery
Cost of utilities – power, fuel and water
Requirement of various approvals and estimated time involved
State government support
Local Laws, Social norms & Environmental regulations
Local transportation and employee housing availability
Social Infrastructure: Education, Health, Entertainment, etc.
Presence of other players, etc.

Deliverables:

The project deliverable was a study report meant for potential JV partners describing the most suitable land location for establishing a technical textile unit. It also included the various related financial, operational, logistical, regulatory and social factors that affect the business.

Location Analysis for Textile Business

Background

Realizing the growth potential of textile manufacturing in Africa, one of the integrated textile manufacturer was planning to enter the textile industry of Africa. We assisted them to develop Africa entry strategy for their expansion.

Project Objectives:

Core objective of the project was to find the most suitable location for setting up a garment manufacturing facility in India. The study was accomplished by answering the following questions for each of the targeted states:

The primary objective of the assignment was to “Develop a strategy to enter Africa’s Textile Industry” for the client
The sub-objectives of the assignment were:
1. Study different countries within Africa to select the most attractive market for textile manufacturing
2. Conduct a detailed market analysis of the shortlisted country in terms of potential locations and apparel & textile manufacturing sector

Deliverables:

Wazir recommended the most suitable locations for textile business with the matrix for these locations highlighting the benefits and challenges inherent in each of the locations, in terms of:

Population centers or arrays that could support the unit with sufficient direct labor
Availability of industrial parks and industrial facilities, with evaluation of facilities offered
Accessibility to logistics base and to commercial sea ports and airport.
Infrastructure quality – rail, road, air/ sea ports. Quality and prices of utilities – water, fuel, electricity
Land availability and prevalent real-estate prices
Political and social stability
Local transportation availability and employee housing availability
Social Infrastructure – Education, Health, Entertainment, Housing
Availability of individuals for manufacturing management and manufacturing staff positions