Legal Steps for Starting Production in Warehouses: What Licenses and Audits Are Needed?

Dear all,

I am working in a plastic manufacturing company that has 3+ warehouses in our nearby location in Maharashtra. Our factory and warehouses are outside the municipal corporation boundary. We are planning to start some basic processes (Production) in our warehouse, such as packing, sorting, and finishing (cleaning), etc. What are the legal compliances to do so? Is any license, audit, etc., required for the same? Additionally, we have MPCB Consent and Town Planning approval.

Thank you.

The Shops and Establishment Act is applicable to warehouses, whereas the Factory Act applies where production activities take place. However, now you mention that some production processes will be shifted to the warehouse. In this case, it is important to determine whether these production processes will still fall under the purview of the Shops and Establishment Act, or if it will be necessary to convert the shops and establishment license to a factory license.

If a labor inspector visits your warehouse and identifies certain activities as production activities, proving that it is solely a warehouse may pose a challenge. It is advisable to have a credible response prepared in such a scenario. Additionally, consider incorporating some value-adding activities to the warehouse to enhance its operations.

Thanks,
Dinesh Divekar