Title: Location selection for the bakery industry in geographically diverse states of India considering PESTEL factors

Authors: Muskaan Kothari; Ayush Nair; Javed Aslam; Mohammed Rehaan Chandan

Addresses: School of Chemical Engineering, Vellore Institute of Technology, Vellore, Tamil Nadu – 632014, India ' School of Chemical Engineering, Vellore Institute of Technology, Vellore, Tamil Nadu – 632014, India ' Department of Commerce, Bankim Sardar College Kolkata, West Bengal – 743329, India ' School of Chemical Engineering, Vellore Institute of Technology, Vellore, Tamil Nadu – 632014, India

Abstract: In any industry, the choice of location has a profound effect on the ease of operations. Industries require distinct inputs based on functionality that is totally dependent on the region where it is located. The article employs the PESTEL analysis technique to determine the influence of political, economic, social, technological, environmental, and legal factors in influencing location decision-making process. The location choices of eight geographically varied states such as Andhra Pradesh, Bihar, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Uttarakhand, and West Bengal have been examined as an example of the Indian baking industry location selection. The eight states were rated for all the components under each factor, which were determined through questionnaire answered by industry experts. Net ratings were evaluated for each state by using the factor rating method. Upon analysis the study reveals Gujarat as the most desirable location and Bihar as the worst performing location for the setup of a bakery industry. Thus, PESTEL analysis and factor rating, when combined with the required data, may accurately estimate the ambient location of any industrial plant while taking into account the greatest number of external factors.

Keywords: location; decision making; PESTEL analysis; factor rating; bakery/food industry.

DOI: 10.1504/IJSOM.2026.155446

International Journal of Services and Operations Management, 2026 Vol.54 No.3, pp.271 - 294

Received: 24 Aug 2023
Accepted: 09 Jan 2024
Published online: 03 Aug 2026 *

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