Land Cost Advantage |
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Man
Power Cost Advantage |
Cost
to Company for the same executive is cheaper by
30-35% in Madhya Pradesh with greater saving
potential for the executive. |
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Logistic
Advantages |
Procter
and Gamble took a strategic decision in the year
2000-2001 to locate their Central Warehouse at
Bhopal for their entire FMCG products .In the year
2003-2004 they have been able to reduce the prices
of their Brands because of the Logistic advantage
offered by its economical warehousing activities
at Bhopal .Many FMCG Companies are now relocating
their wares to Madhya Pradesh. |
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Fiscal
Advantages |
A
promotional assistance equivalent to 50-75% of the
Commercial Tax and Central Sales Tax deposited in
the first year shall be given in the second year.
This promotional assistance shall be given for
3-10 years depending upon the category of the
district and the amount of investment shall not be
more than the total investment of the installed
unit. |
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Qualification
of estimated overall "Cost Advantages"
for a
Madhya Pradesh vis-a-vis developed State and
Metros |
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Items |
Capital
Savings |
%
Annual Revenue Savings |
| Land
Cost Advantage |
10-15% |
4-7% |
| Manpower
Cost Advantage |
- |
5-8% |
| Logistic
Advantage |
- |
5-10% |
| Fiscal
Advantage of Industrial Policy |
1-8% |
5-7% |
| Capital
Subsidiary Advantage |
4-7% |
2-3% |
|
Total
Savings |
15-30% |
21-35% |
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Figures
may vary from
*
Industry
to Industry *
Product to Product |
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