Every surgeon needs his gloves, and every manufacturer needs a factory. Including you! A factory can be your biggest asset, a specific area set aside only for maximizing the size, quality, and efficiency of production.
But you probably already know that. What you might not know is where to find one, or rather how to find one. Well, that’s why we are here!
Any prospective factory owner would have two main choices in securing a factory: building one or leasing one.
Building a factory
Building a factory is a more long-term solution. Constructing a factory allows you to tailor your building to your interests. Additionally, a factory can be one of your most profitable assets. Land value, under normal circumstances, always appreciates. With time, you can end up having two hundred per cent selling price on your land-plus-building if you play your cards right!
However, building a factory comes with its fair share of disadvantages. For one, it’s a huge one-off payment. Many entrepreneurs incur debts of crores of rupees for a repayment period stretching years.
Leasing a building
This is much easier than building a factory. Leasing a building allows you to arrange cash on a short-term basis; you don’t have to rely on ten-year loans. Instead, you can opt for a longer-term lease. Usually, a lease under 20 years is less expensive than a buy-out, which means less money tied-up on land and more available for day-to-day expenses.
On the other hand, you will have to compromise on a few aspects of factory design. If you are looking to lease the place it would be useful to hire a broker who can find the most suitable one for you, which can be expensive. Even then, your landlord may not see the best of your interests.
Whichever option you choose to find a factory, make sure that you fulfil the bird-proofing requirement for your factory.
SO, if you consider these factors while looking for a suitable land for your factory in India, more than half of your problems are solved, not only while starting up but also as you grow.
If you have any questions in mind, feel free to comment here or contact us directly.
We will be posting more on how you can set up a factory in India like a PRO. 😎
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