What is the ideal plot size for medium-scale industries?

Hello LandBank

1. Typical Size Range for Medium-Scale Industries

The ideal plot size for medium-scale industries generally falls within the range of:

  • 0.5 acre to 2 acres
  • Equivalent to 21,780 sq. ft. to 87,120 sq. ft.

This size is considered sufficient to accommodate:

  • A standard factory building or production unit
  • Loading/unloading bays, parking space, and internal circulation
  • Basic utilities like power rooms, water tanks, and office cabins
  • Setback areas, green buffers, or future expansion

2. Based on Nature of Industry and Operations

The ideal plot size varies depending on the type of manufacturing or service activity:

  • Light manufacturing or assembly units (e.g., electronics, packaging, plastics):
    Typically require 0.5 to 1 acre, with focus on built-up space over storage
  • Fabrication, machinery, or agro-processing units:
    Need 1 to 2 acres to accommodate machinery, raw material, and waste handling zones
  • Textiles, food processing, and engineering units:
    May require more than 2 acres if operations involve warehousing, effluent treatment, or workforce housing

The selection is guided by space requirements for production, storage, workflow layout, and compliance infrastructure.

3. Compliance with Regulatory and Layout Norms

Government and industrial development corporations often define minimum and maximum plot sizes for medium-scale industries within designated zones. These norms depend on:

  • Zoning category (light/medium industry)
  • Floor Area Ratio (FAR) or built-up area limitations
  • Setback and road access requirements

For example:

  • In SIPCOT and MIDC estates, medium-scale plots range from 20,000 to 50,000 sq. ft.
  • In KIADB zones, medium-scale units typically occupy 0.5 to 1.5 acres

Conforming to these norms ensures faster approval and smoother setup.

4. Scope for Expansion and Future Growth

Medium-scale industries often prefer plots that offer:

  • Flexibility for layout modifications
  • Scope for built-up area extension or machinery upgradation
  • Space for auxiliary functions like canteens, labs, or staff quarters

A plot size between 1 to 2 acres allows for scalable growth without the need for relocation, which enhances operational stability.

5. Budget, Location, and Sector Considerations

The ideal plot size must also balance:

  • Land cost per sq. ft. in the chosen zone
  • Proximity to raw materials, markets, and labor
  • Sector-specific regulatory norms (especially for pollution control or fire safety)

For instance, an industry in a premium industrial corridor may opt for a smaller plot due to higher land cost, while one in a rural cluster may choose a larger plot for the same budget.

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