An industrial area is a zone for industrial development, including small to medium-sized industries. Industrialization plays a crucial role in economic development. That’s why most industries aim to establish their business in a large-scale area (nearly 1 million square feet).
Red Fort Capital provides construction loans for industrial areas, industrial showrooms, data centers, R&D buildings, warehouses, and other industrial properties. To build an extensive industrial area, a builder or construction company needs funds for construction machines, labor, construction tools, and more.
In this guide, we will discuss how you can build a 1mn sq. ft industrial area from scratch, including how to gain funds for the same:
First things first, you should start with some planning and preparation. Grab a pen and paper to note down everything that you will need during the process. Whether it’s finding the location, labor, or raw materials, list down all the requirements one by one.
You may also need to learn about any special laws that are necessary for the establishment of an industrial zone in your area. The main objective is to prepare yourself with all the do’s and don’t’s of the process. The better you do the research, the quicker and swifter will be the process.
Next, you need to find a location where you can establish the industrial area. For example, if you’re building a new manufacturing plant, look for the type of land acquisition you’ll need for the plant. Make sure that you have plenty of space for all your industrial needs, including employee parking, warehouse, office space, and more. Additionally, make sure to choose a location far from residential areas that abide by the rules for pollution control.
Once you have decided on the location, the next important step is to work on the design of the industrial area. For this, you may need to contact your architect and contractor. Explain all your requirements for the industrial area to them so that they can visualise and make a design that suits your needs.
During the pre-design phase, architects and contractors will complete the following tasks:
● Design the complete 3D design of the industrial area and determine the required manpower as well as equipment.
● Determine the overall size of the rooms and parking.
● Work on the utility connections of the building.
● Ensure that the design and project cover all your desired amenities.
● Create contract documents to establish a project timeline.
● Estimate the costs for each phase of the construction of the 1 mn sq. ft. industrial area.
This can take some time, so be patient while working on the designing phase of the industrial area. Once the architect is ready with the design, check it and make sure it has everything you desire. Avoid focusing only on the aesthetics of the industrial area, but pay attention to the small details and space you want.
After the pre-design phase, the next step is the design phase which includes a complete set of drawings with final specs. The designs help contractors to construct the industrial area with ease. In addition to contractors or builders, this phase also includes the following specialists:
● Structural engineers for structural design
● Mechanical engineers for plumbing plans
● Electrical engineers to work on the electrical design for the project
● Civil engineer for drainage and parking lot design
After this phase, to start the construction, you need:
● Unskilled laborers to handle the masonry work like site preparation, loading/unloading of raw materials, cleaning, etc.
● Skilled laborers to look after the tasks that include heavy machinery, erecting scaffolding, drilling, jackhammering, and many more
Also, make sure you have obtained the building permit and insurance.
The last but most important part of building an industrial area is to secure the funds for the construction and pre-construction phases. You need funds to buy construction material, to pay people evolving in building the industrial area. Therefore, to cover all the expenses, you businessman needs financing.
If you are looking for a quick and hassle-free financing option for your construction project, then Red Fort Capital is the best option. We have a number of financing options available for you, including term loans and construction financing.
Red Fort Capital is a trusted and reliable NBFC that helps MSMEs in securing funds for future growth. We are a leading investment platform and trusted partner to the world’s top institutional investors. The firm has multiple financing vehicles, including its market leader, Private Equity Funds, Red Fort Principal Investing Group, and a Regulated investment-grade NBFC in India. So, apply today and get your construction loan approved within 24 hours!
Applying for a business loan with Red Fort Capital is very easy and quick:
Whether you need a term loan, supply chain loan, inventory loan, or any other business loan for building an industrial area, Red Fort Capital is here to help. Call us now!