The factors needed to establish an industry are:

Location- especially for perishable material
heavy and bulky raw material

Availablity of power resources-
set up usually near power resources hydroelectric energy, thermal power plants etc

Proximity of markets- closeness of markets
reduction in transportation cost

Labour- skilled, semi skilled or even unskilled
industries also need qualifies engineers, managers etc

Capital- industries are established where there is easy access to capital like cities and towns
fixed capital- the fixed asset which remain for more than 1 yrs
working capital- the day to day operations

Transport- movement of raw materials
movement of finished goods
roadways,airways, waterways and landways

Government policies- the factories close to each other enjoy the government estates.

All these factors together contribute in the establishment of factories.