Merits and Demerits of Multiple company codes

Hi SAP Gurus,
Could you please let me know the Merits and Demerits of multiple company codes in ECC 6.0. Actually client asking for separate company codes for each production plant. Client having 20 plants (Client registered as one legal entity as per companies Act having 20 plants in different regions with in India) and wants to have separate company codes in SAP to have decentralized control of operations and period closing. Could you please let me know the merits and demerits of Multiple company codes with respect to Load on system, Extra activities/ load on man power on consolidation, complexities ect..
Thanks in Advance
Best Regards
Raj

Ray,
From the background explained by you, I feel that you should go for a single company code as they have one singel legal entity. The purpose of comapny code is to generate external reporting(mainly balance sheet & Pand L statement) as per the legal requirements.
As far as decentarlized control is concerned you can opt for configuring each plant as a separate profit center which will not only allow decentralized  operations and accountability but also a flexibility from internal maangement point of view.
As far as configuration of multiple comapny codes is concerned, it will make the system too cumbersome and will have undesired complexity.
Hope this helps.
Rgds
Manish

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