INDIVIDUAL ASSIGNMENT FOR

PRODUCTION AND OPERATION

MANAGEMENT

 TOPIC:- Prepare Plant location for

the Animal Feed Products.
 OBJECTIVE:-Understanding The
concepts of plant location.
 Identify the various factors to be
considered for selection of plant
location from state/area to the
specific site.
 The important considerations for
selecting a suitable location for
Animal Feed industry are given as
follows:-
a)Natural Or climatic conditions.
b)Availability and nearness to the sources
of raw material.
c)Transport costs
d) Access to market
e)Availability of Infrastructural facilities.
f)Availability of skilled and non-skilled
labour and technically qualified and
Trained managers.
g) Banking and financial institutions are
located nearby.
h) Proximity of Market
i) Strategic considerations of safety and
security
j)Government influence.

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  About the Product
Animal feed processing is the
cornerstone of modern agriculture,
powering the health, growth, and
productivity of livestock across the
globe. It’s a complex and
indispensable industry that transforms
raw ingredients into nutritious and
balanced feed for a diverse range of
animals, from poultry and cattle to
aquaculture species. The impact of
this process extends beyond the
barnyard, playing a pivotal role in
global food security and
sustainability. The global animal
feed market size was estimated
at USD 570.72 billion in 2022.
The Indian animal feed
market size reached INR
1,035.2 Billion in 2023.

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 Looking forward, IMARC
Group expects the market
to reach INR 1,964.8 Billion
by 2032, exhibiting a
growth rate (CAGR) of 7.2%
during 2024-2032.

Top Comparative Animal Feed

companies in India:-
 Suguna Food private limited
(Coimbatore)
 Japfa comfeed India Private
limited ( Pune)
 Venkateshwara Hatcheries
Private limited ( Pune)
 Cargill India private limited
( Haryana, Gurgaon)

 Comparative Analysis
of Animal feed
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 Industry in different
parameters.

Comparative analysis of the animal

feed industry in Pune, Gurgaon, and
Coimbatore can be conducted based
on several parameters such as market
size, key players, types of products
manufactured, distribution channels,
and regulatory environment of all type
of products in animal feed industry.
The types of products in the animal feed
industry include:
 Complete feeds
 Concentrates
 Base mixes

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  Premixes
 Specialty feed
 Additives and supplements

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7
Based on analysis. Pune emerges as the most
well rounded location. For an animal feed
plant. It offers a good balance of factors like
access to raw materials, transportation cost,
market access, infrastructure, labour and
government support.

 WEIGHTED FACTOR
RATING METHOD
I have taken weighted factor rating method
in use to find out the location for the setting
up animal feed plant.
In this method to merge quantitative and
qualitative factor, Factors are assigned
weights based on relative importance and
weightage score for each site using a
preference Matrix and sight with the
highest score is selected as the best choice.

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 AVAILABILITY AND NEARNESS TO THE
2 SOURCE OF RAW MATERIAL 10 5 50 5 50 4 40
3 TRANSPORT COST 10 4 40 3 30 2 20
4 ACCESS TO MARKET 15 5 75 4 60 3 45
AVAILABILITY OF INFRASTRUCTURAL
5 FACILITIES 10 5 50 5 50 4 40
Availability of skilled and non-skilled
6 labour and technically qualified and 15 4 60 4 60 5 75
trained managers.

BANKING AND FINANCIAL INSTITUTION

7 ARE LOCATED NEARBY 5 4 20 3 15 4 20
8 PROXIMITY OF MARKET 5 4 20 5 25 2 10
Strategic considerations of safety and
9 security 5 3 15 3 15 4 20
10 GOVERNMENT INFLUENCES 10 4 40 4 40 1 10
TOTAL 100 430 405 325

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 Weighted score calculation!
1. Pune
=(0.15x8)+(0.2x9) + (0.1×8) + (0.25×9) +
(0.1 x 9) + (0.15x9)+(0.05x9) + (0.05x8) +
(0.05x8) + (0.2x9)
=1.2+1.8 +0.8 +2.25 +0.9+1.35 +0.45+0.4+
0.4+1.8
= 11.35
2. Gurgaon

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= (0.15x9) + (0.2x7) + (0.1X7) + (0.25×8) +
(0.1×8) + (0.15×8) + (0.05x9)+(0.05x9)+(0.05×7)
+ (0.2x8)
=1.35+1.4+0.7+2 +0.8 + 1.2 +0.45+0.45 +0.35
+1.6
= 10.3

3.Coimbatore
=(0.15x7)+(0.2x8) + (0.1×7) + (0.25×8) + (0.1x7)
+ (0.15x8)+(0.05×8) + (0.05×9) + (0.05X7) +
(0.2x8)
=1.05 +1.6+0.7+2 +0.7+1.2 +0.4 +0.45+0.35
+1.6
=10.05

 Based on the weighted score rating

calculation Pune emerges as the
preferred location with a weighted
score of 11.35. which is highest among

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 all the three locations: Pune, Gurgaon
and Coimbatore

Pune offers several advantages for

setting up animal feed plant, which are as
follows:-

1. Central location

 Pune is centrally located in India,

offering easy access to both North and
South Indian markets. This allows to
cater to a wider customer base and to
reduce transportation costs depending
on the target market.
 Good connectivity to surrounding
regions by roads , rail and air facilities
which provide efficient distribution of
products.

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 2. Developed Infrastructure

 Pune boasts well-developed infrastructure,

including industrial zones with reliable
power, water and Communication facilities.
 The presence of established industrial
areas can make it easier to access
necessary utilities and permits.

3. Skilled Labour
 Pune has a readily available pool of both
skilled and unskilled labour, especially in
the agricultural sector. This can help in
finding right personnel for operation and
management.
 Proximity to educational institutions can
provide access to the future talent
4. Government support

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  The Maharashtra government offers
supportive policies for the animal feed
industry, including subsidies and tax
breaks. This can provide financial
incentives and encourage investments.
5. Other advantages
 Stable and secure environment: Pune
generally, enjoys a safe and stable
environment, which can be crucial for
long-term business operations.
 Growing market – The poultry and dairy
industries. In Western India are growing,
presenting ample market opportunities for
the feed products.
 Storage presence of financial institutions:
The availability of various financial
institutions in Pune facilitates access to
funding and financial services.

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 However, it is also important to consider
potential drawbacks-
1.Competition:- Pune has a well-established
animal feed industry with existing players.
2. Raw material: Prices of same feed
ingredients might be higher in Pune.

3.Land costs :- Land might be more

expensive in Pune.

 Conclusion
The assignment delves with selection of a
plant location of animal feed considering
important and crucial factors and using
Weighted rating system location model.
Top four animal feed companies have been
taken into consideration along with their
location. After performing a comparative

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 analysis and weighted rating model. It is
found that Pune is taken as the most well
rounded location because it offers a good
balance of factors necessary for setting up
an animal feed plant.

SUBMITTED BY:-
Name :- Harsh Kumar
ERP id no :- 0231BBA034
Course:- BBA 2 semester

SUBMITTED TO:-
Name :- Prof.Anubhav Singh
Gangwar

THANK YOU

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