Cement Industry is one of the largest industries of the world and occupies the position of second largest cement manufacturer in the world next to china. Cement industry serves as one of the basic industries for development and its employment generation capacity. Hence this research focuses on recognizing the factors that influence private entrepreneurs towards investment in cement manufacturing units, especially in grinding and blending units in south India. A structured questionnaire was used to procure primary data from 150 respondents and the reliability of the questionnaire has been tested using Cronbach’s alpha test. Factor analysis was used to decide the principal factors and the number of dimensions that exist in the set of factors influencing private investors to invest in cement manufacturing units.  Six principal factors were extracted using factor analysis, which showed that factors of production and economic factors are considered for the larger percentage of variance. This study showed that investors give more importance to economic factors and production factors rather than Possessing industrial status, providing huge employment opportunities and environmental protection which were given least importance while investing in cement manufacturing units.