Industrial Estates| Definition, Features, Objectives and Types

Industrial Estates| Definition, Features, Objectives and Types

Industrial estates also known as business parks or industrial parks are specialised places where different manufacturing and producing activities take place. These places provide a variety of amenities, such as factories, warehouses, and office structures, to serve various businesses.

Industrial Estates Definition and Features

One of the primary benefits of industrial estates is their ability to provide companies with the infrastructure and amenities they require to run effectively.

These areas are built with an emphasis on practicality and effectiveness in mind, providing a variety of resources and services to assist businesses in streamlining their operations. Businesses in industrial areas, for example, can take advantage of cutting-edge amenities such as refuse disposal services, security systems, and transportation networks.

Also, industrial estates are typically situated near major transportation hubs such as freeways, ports, and airports, making them an ideal location for companies that require easy access to commodities and products.

Many industrial estates are built with an emphasis on green places, energy-efficient structures, and renewable energy sources to encourage sustainability. This not only reduces the environmental effect of industrial activities, but it can also boost a company's image and draw clients who value sustainability.

Definition of Industrial Estates

The United Nations has defined an industrial estate as

A planned cluster of industrial enterprises offering standard factory buildings erected in advance of demand and variety of services and facilities to the occupants.

Features of Industrial Estates


Industrial estates, by clustering businesses, create an atmosphere in which businesses can easily cooperate, network, and exchange knowledge. This can lead to improved innovation, productivity, and chances for development for companies of all sizes. Also, clustering can aid in attracting suppliers and clients to the region, resulting in a flourishing business environment.

Availability of different sizes of plots and sheds

Availability of different sizes of plots and sheds allows companies to select the plot area and building style that best meets their requirements. Industrial estates can support a variety of sectors and activities by allowing companies to choose their plot and building. For example, a warehouse might require a bigger plot, whereas an office structure may require a smaller plot. Industrial estates can meet the requirements of various companies by providing a variety of plot sizes and building kinds.

Common Infrastructure

Industrial estates provide common utilities such as roadways, power, water, and sewage. This infrastructure is shared by all companies in the estate, which reduces the cost and time needed to establish new operations. Industrial estates can help companies save money and concentrate on their primary operations by offering common infrastructure. Also, shared infrastructure can lead to more effective resource utilization, lowering the environmental influence of commercial activities.

Regional development

Industrial estates can promote economic development and employment creation by attracting companies to a region, benefiting the local community. Also, industrial estates may promote the growth of associated sectors such as logistics and transit, thereby boosting the local economy.

Types of Industrial Estates

Traditionally, there are two types of industrial estates namely,

Functional Estate: A functional estate is an industrial estate designed to provide a suitable environment for a particular business. These estates are designed with the industry's particular requirements in mind, and as such, they provide specialised infrastructure and services.

Ancillary Estate: An ancillary estate is created to provide facilities and support services to a variety of businesses. Infrastructure and services such as depots, storage facilities, transportation networks, and office space are usually provided by ancillary properties. They are intended to be adaptable and flexible to the requirements of various industries, and thus can handle a broad variety of industries.

Industrial Estates are categorised in a variety of ways.

Classification based on Functions:

Based on functions industrial estates are broadly classified into two types:

(i) General type industrial estates: These are also known as traditional or mixed industrial estates. These provide facilities for an extensive range of industrial concerns.

(ii) Special type industrial estates: This form of industrial estate is designed for particular industrial units that are interdependent vertically or horizontally.

Classification based on Organizational Set-up:

On this basis, industrial estates are classified into the following four types :

(i) Government Industrial Estates: The government owns and manages government industrial estates. They are usually created by the government to encourage industrialization in a given area. Businesses in these estates are provided with the required infrastructure and amenities by the government. Government industrial estates are frequently created in areas where there is a need to generate jobs or grow a specific segment of the economy.

(ii) Private Industrial Estates: Private individuals or organizations own and run private industrial estates. These estates are usually built to meet the requirements of particular industries or to provide a welcoming atmosphere for businesses.

(iii) Co-operative Industrial Estates: Cooperative industrial estates are owned and administered by a collection of organizations or individuals who formed the estate. These estates are usually formed to provide a favourable atmosphere for businesses to function and share resources and services.

(iv) Municipal Industrial Estates: The municipal authority owns and manages municipal industrial estates. These estates are usually built to encourage industrialization in an area and to provide job possibilities for the local people.

Objectives of Industrial Estates

Objectives of Industrial Estates

The primary objective of industrial estates is to support regional industrialization. Industrialization is critical for economic development because it provides jobs, generates money, and helps other sectors of the economy expand.

The development of industries in a region can result in both direct and indirect opportunities for employment. Direct employment opportunities are generated in the businesses, while indirect jobs are produced in associated support areas such as transportation, warehousing, and retail.

Industrial estates provide companies with the facilities and services they require. Power supply, water supply, garbage disposal systems, transportation networks, and information networks are all part of the infrastructure and services.

Industrial estates are being created to help small and medium-sized businesses expand. (SMEs). SMEs are an important component of the economy, and their expansion can greatly help to economic development.