Differentiate between raw material oriented industries and market-oriented industries with suitable examples.

Since all industries need raw materials, the distance from which they have to be obtained is an important consideration. If the amount of raw materials required is more than the amount of finished product, i.e. the industry is weight losing, it will tend to be located near the sources of raw materials. Such industries are called raw material oriented industries. Most of the metal­lurgical industry where only a small amount of final metal is extracted from a large amount of ore tends to be raw material oriented. The industry tends to be raw material oriented also in case the raw material used by it is perishable. Sugar manufacturing has to be done near areas of cane cultivation as cane is per­ishable and if it is not processed to make sugar soon after being harvested from the field the sugar con­tent in it decreases.

In case the industry is weight gaining or the prod­uct is perishable, the attractive locations are the ones near the market or the point of consumption. Such industries are called market-oriented industries. Most of bakery units producing perishable products like bread fall in this category.


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