Packaged Drinking Water Plant Project Report contains important details about packaged drinking water plants. You will get to know how you can run the plant efficiently. It will also guide you as an entrepreneur you can start a profitable business venture if you explore all the details in this business plan. You will be able to avail bank loan facility if you can write your packaged drinking water plant project report and present it before the bank for a loan. This business is a successful venture so you can surely plan to start it.
Water everywhere, not a drop to drink. This means although water is available in abundance, but have you ever thought about how much of it is fit for drinking?
Less than one-fourth I suppose. Thus, everyone depends on water suppliers be it the governing board or any external supplier for the consumption of water. Drinking unpurified water is harmful for humans because it has chemical impurities, dust and bacteria.
The naturally available water should undergo a couple of processes to become fit for drinking. It must have the right pH balance and necessary minerals. The consumption of water increases because of the growing population thus it is necessary that the world requires more and more water purification units globally.
This is the point where the bottled water business gets benefitted. Packaged water business contains the process of purification of water, bottling them for sale and marketing. Bottled water is easy to carry is sold much among travelers, employees and students to keep them hydrated.
Packaged Drinking Water Plant Project Report
Table of Contents
- 1 Packaged Drinking Water Plant Project Report
- 2 Mineral Water Business in India
- 3 Disadvantage of Normal Water
- 4 Advantages of Packaged Drinking Water Business
- 5 Market of Packaged Drinking Water
- 6 Estimated Cost of Investment in Packaged Drinking Water Business Plan
- 7 List of Equipment’s and Estimated Cost
- 8 Topics covered in project report
- 9 Permits necessary for Packaged Drinking Water Plant Business
- 10 Packaged Drinking Water Plant is a Profitable Business Idea
- 11 Profits In Packaged Drinking Water Business
- 12 Promotion and Marketing of Packaged Drinking Water Plant
Bottled water may be made from spring water, normal or mountain water. Mountain and spring water is also known as mineral water. You can also plan to sell flavoured drinking water in your bottled water industry.
So, are you ready to start a business with less investment? We are going to provide you complete detail about this business plan. The project report of packaged drinking water plant can guide you in making right decisions in this business. You need to read it till the end.
Before you start this venture, you need to understand these basics.
Mineral Water Business in India
The spring or mountain water is called mineral water. Spring water or mountain water is processed and minerals like calcium, sodium or potassium are used. It is healthy to drink as compared to normal water. It is among the top food business in India as water is consumed by each one of us after meals. You need to invest intensive capital in establishing your packaged drinking water plant.
Disadvantage of Normal Water
- It may contain toxic minerals like chlorine or lead.
- It may have pesticides.
- It may contain harmful organisms or bacteria too.
Advantages of Packaged Drinking Water Business
- It is easy to carry packaged drinking water.
- It is free from contamination because of presence of pesticides, microorganisms or toxic minerals.
Market of Packaged Drinking Water
Packaged drinking water is consumed on daily basis and no economic conditions can affect this business because consumption of drinking water is required for survival.
As per a survey, the worldwide packaged water market is valued at 4 17 billion in recent years and is estimated to reach at $280 billion in upcoming years.
The packaged water industry is growing at 8.5% CAGR in recent years. Packaged water industry is contributing to 18% of total beverage sale in the entire world.
Increasing health issues and unavailability of clear and clean drinking water has led to growth of packaged market of water in India, The market is expected to rise more in the upcoming years. The major brands of packaged water available in the market are bislery, Aquafina, Kinley etc. Packaged drinking water is sold in three ways. One-Litre, Two-Litre, 500 ML, 250 ML etc.
It is also available in sachet or pouches and even barrels of 15 to 20 litres. Packaged drinking water bottles have covered the entire Indian markets.
Flavored packaged drinking water is popular in the country these days. You can sell different types of packaged drinking water in India like with fruit essence, or artificial sweeteners like cola, soda, juice or some others.
Sweet beverages are also supplemented to packaged drinking water. If you have investment back up, you can start beverages business as well. At times a consumer may ask for flavored packaged drinking water to normal water bottle. This change is creating another opportunity to expand new product line under packaged drinking water purifier plant.
Along with individual sales, the market players in India have started selling packaged drinking water in airlines, hotels and movie halls. This partnership is increasing more and is expanding the market to more sales that are followed by rise in the annual sales and turnover of packaged drinking water purifying project report.
India holds 18% of the global drinking water population. Additionally, per capita income of residents of India have seen a growth of 9% in recent years. Increased awareness among the growing population about importance of drinking safe water and maintaining good health has led to more demand of packaged drinking water. It has also increased per capita income and risen the demand for drinking water bottles business.
Estimated Cost of Investment in Packaged Drinking Water Business Plan
Establishing a packaged drinking water manufacturing plant is cost intensive. You need to set a medium size plant first. You need to dish out a total of 45 Lakh bottles in the first year and this will require investment of around 1 crore.
It is a rough estimate, and this includes the cost of buying the land as well. You can get the land on lease, and it may reduce your investment cost to half. Cost of investment depends on other factors also like the amount you are ready to spend on setting up the complete plant. The complete financial expenditure depends on the desired production level.
If you want to set up a business of packaged drinking water, then you can choose to buy a dealership also. If you get the dealership, you can start your business with just 4 lakhs in hand and then you can expand it. The amount of investment also varies from one region to another. The franchise, policies, demand and a few other factors too.
List of Equipment’s and Estimated Cost
If you are opening a packaged drinking water purifying plant on a medium to large scale, you need to buy the land and machinery and also land and machinery. I advise you to take land on lease in the initial stage. You can also get dealership or franchise. It will cost you nominal investment.
You need to buy high end machinery for your plant that are needed for purification of water, processing and packaging the water.
You require Alum treatment tanks that will cost you around 1.20 lakh Rupees. At least three are required. Chlorination Tanks costing around Rs 80,000. Reverse Osmosis equipment’s can cost you near around Rs 3 Lakh. Sand filters are available in the range of Rs 50,000.
Topics covered in project report
|1||Project at A Glance|
|2||Highlights of The Project|
|3||General Information and Location|
|6||The Project Proposal|
|7||Prospect for Investment|
|8||Potential Target Customers/Market|
|9||Market Entry and Marketing Strategy|
|10||Critical Success Factors|
|11||Process Details and Technical Aspect|
|13||Installed And Operational Capacity|
|14||Raw Materials and Consumables|
|15||Power and Utility|
|16||Tentative Implementation Schedule|
|17||Basis & Presumptions|
|18||Capital Investment Estimates|
|19||Raw Materials/ Consumables/ Packaging|
|21||Power and Utility|
|22||Repair and Maintenance|
|23||Computation of Working Capital Requirement|
|24||Estimated Cost of The Project|
|25||Proposed Means of Financing|
|26||Estimated Annual Sales Turnover|
|27||Projected Profitability Statement|
|28||Calculation of Interest Amount|
|30||Term Loan Repayment Schedule|
|31||Debt Service Coverage Ratio|
|33||Rate of Return|
|34||Projected Cash Flow Statement|
|35||Projected Balance Sheet|
|36||Internal Rate of Return|
|37||Pay Back Period|
|38||Statutory Permits and Business Licenses|
|39||Important Steps to Start MSME Business Unit|
|40||Tips to Identify Suitable Project Location|
|41||Smart Tips to Follow in Business|
How Many Employees are required in Packaged Drinking Water Purifying Plant?
If you are planning to open a packaged drinking water purifying plant on medium to large scale, you need to have a team of workers. They should be qualified and experienced to handle your operations and maintain records of your plant.
The processing, purification, filling, capping, labeling and boxing, everything is done with the help of employees. You need 5 labourers, 5 technical staff, 1 manager, 2 security guards, 2 maintenance men. You need to have overall 15 workmen in your plant to carry out your functioning smoothly.
Major Players of Packaged Drinking Water
If you find it tricky and difficult to arrange funds to start your plant, you can simply get the franchise of packaged drinking water major players who are already existing in the market. These brands are reputed and well established. Some of the major players who are rocking in the Indian market are Qua, Aquafina, Bailley, Tata Water Plus, Himalayan Water, Kinley,Bisleri and a lot more.
Target Market and Marketing Areas
Schools, Offices and College
If you want to get more orders in the initial phase of your business then schools, offices and colleges is the best target market to capture. The schools have regular attendance, colleges and offices too have it.
If you get good orders to supply water in these areas your turnover is sure to reach high.
Malls, Fairs and Events
You can capture movie halls, fairs or parties as events and set up your stall of water to grab high sale opportunity.
Restaurants and Café
Every restaurant and café these days offers water bottle like aquafina. You can capture this target market and convince them to sell or place your purified water bottle brand. You can get a deal done with hoteliers or café owners to promote your sales.
Beverage and Grocery Stores
You need to make sure that water is available in beverages and grocery stors in your nearby location. This will increase your sales and your business will soon reach stability point.
Domestic Level Sales
The health-conscious people try to drink and cook food in mineral water. They choose to buy 20 litre of water jars. Selling purified water jars at domestic level will increase your sales.
Risks and Risk Management
Prevent underground water pollution
Drinking water purifying plants depend on underground and ground water sources and drain out the wastewater. Thus, you need to take necessary steps to prevent the risk of polluting natural water.
Safe storage of Chemicals and Fuels
The water purification plants bring to use chemicals. The machinery runs on fuel. Good care should be taken to store fuel and chemicals so that you can keep away risks and accidents.
No wrong storage of Products
Your storage should be right. One wrong step can lead to huge loss. If you do not keep the storage areas clean, then the distilled water can turn bad with time. Risks need to be avoided by staying attentive in capping, sealing, boxing etc.
Check on Quality Control
Another risk that is associated with purified water plant is the inability in maintain superior quality of water. It is the duty of research and development department to carry out proper batch checks and ensure that purification and preservatives are added accurately.
Management of Waste in Packaged Drinking Water Plant in India
The packaged water bottle manufacturing plant generates huge liquid waste every day. The effluents increase soil and water pollution. To prevent environment pollution, waste items need to be treated.
The plant needs to ensure that the treated waste goes out through sewage drains. The main drain slant should be adequate so that water can go out smoothly. The drains need to be covered and placed next to the water processing and packaging department. Dirty water back run must not be there into the plant at any cost. You should not store chemicals along the packaged water boxes.
It’s important to aware people about your new venture. Hoping that target audience will readily buy packaged drinking water bottle is wrong. Buying and drinking packaged water bottle is an option as people who carry their RO Water along don’t buy it.
People usually prefer to boil and strain water to remove germs and insoluble particles from water. One doesn’t want to take any chance with life so who can afford packaged drinking water must stick to it only.
Steps To Start Packaged Drinking Water Business
Drinking water needs to be tasteless, colorless and odourless. There are minerals and salts that need to be added to add taste of water. Steps that are involved in production of packaged drinking water depends on the source of water and its quality. Quality of source of water defines the treatment of water required.
The water that is treated needs to be packed in sterilized bottles along with label that contains expiry date, quantity, price pr composition. A fully automatic water purifier plant or a semi-automatic one can be installed in your ambience according to the production capacity.
Do a feasibility Study and Check Out Market Trends
A deep study is required to check out the feasibility so that you can understand the requirements and determine the price strategy so that you can later define the marketing strategy to make your product survive in the market. A detailed market analysis is needed to give valuable insights to explore market places and opportunities that you will get to enhance your packaged drinking water business.
Register Your Business
You need to get your business registered. It will help you to identify the market, gain trust of customers and avoid the competitors who can misuse your market value.
Writing a Good Business Plan for Packaged Drinking Water Plant
A good business plan for packaged drinking water business can help you with smooth business execution that is easy and can arrange funds for you. Business plan for packaged drinking water business needs to include important sections like executive summary, mission, vision, market analysis, potential market, promotion, marketing, returns, staffing etc.
Arrange important permits and licenses
Once you will register your business, you need to have all the permits and licenses to set up your packaged water plant. You need to procure water and sell it along with showing that you have certification for the safety of water. Absence of permits and licenses that are compulsory to have can invoke strict actions against you from the government and you may have to shut down your company.
Finding a Good Location
Choosing the perfect location is an important factor to consider like source of water, transportation, distance to target market, affordability of space, availability, procure large water tanks, continuous electricity supply etc. The location that you choose should be capable of handling large tanks and machinery for packaged water production. There should also be space to storage the bottled drinking water. It should also have space to transport water tankers.
Finding good source of water
To have a good source of water is important as it takes your business to great height and your business gets successful. The source of water can be wells, municipal water supply, sea water and other sources that allow the treatment of water in packaged drinking water plant.
Identify suppliers of Bottles
The main concern for packaged drinking water business is to get a PET Bottles supplier. You can also start your own PET Bottles business by investing a little more once. This will reduce your investment cost in the long run.
The cost of buying bottles to fill purified water is much on monthly basis. Therefore, you should focus on minimizing this expenditure and it is only possible when you get a cheap supplier of bottles at acceptable price with good quality. This will help you make more profits.
Arrangement Of Machinery
The machinery needed for packaged water business depends on the scale of your business that helps you produce your product. The main machinery required for this business is a generator, bottle filling, labeling and sealing machinery, tanks, testing tools, water purifying chemicals, and treatment machines.
You must ensure that the purification of water is done in a hygienic manner and safely. The bottles should be washed and sterilized before pouring purified water in them.
This can be manually done and also using machines. Using warm water you can sterilize bottles in small scale set up and in automatic purifier plants, you need to set up machines for the same.
Hire Staff and Operate
Water Purifier Plant requires staff to operate a lot of activities as it involves complex process that depends on the method of purification of water that you are using.
Minimum staff that is needed for this business is a trained professional to test water, machine operators, production helpers, sales manager, supervisor, cleaners and drivers. You need to hire staff that has good experience in water testing, operating machinery and sales personnel who can crack good deals.
How To Get FSSAI License For Packaged Drinking Water
Food Safety and Standards Authority of India is a regulatory body of India that ensures quality and safety of water, food, and beverages. You will require BIS Certification before FSSAI. It will help you obtain FSSAI Certificate.
It is thus important to get BIS Certificate so that it can avoid cancellation of FSSAI Registration and license. You should know about the three types of FSSAI licenses.
FSSAI Basic License
It is for retailers that have an estimated annual turnover of below 12 lakh.
FSSAI State License
It is for the business that has an estimated turnover of more than 12 lakh and less than 20 crores annually.
FSSAI Central License
- This license is for the manufacturers who run units in more than single state and have an estimated turnover of more than Rs 20 Crores annually.
- According to FSSAI, You can get water for purification from surface water, seawater, underground water, civic water or from the municipal water supply. To get the FSSAI License you need to follow the rules of FSSAI.
- Water must undergo purification processes like demineralization, decantation, filtration, aeration, activated carbon filtration, remineralization, and osmosis reverse.
- Water needs to be disinfected. Microorganisms need to be scientifically acceptable.
- Seawater needs to be desalinized.
- Containers that are used in your plant need to be sealed.
- Chemicals and ingredients that are used for remineralization need approval from food grade and pharma for quality.
Permits necessary for Packaged Drinking Water Plant Business
You need to avail the appropriate license for your water purification plant. It is a must for beginning a new business. This license will help you get funding for your business in India and arrange equipment for your new set-up.
It is a license that is a must to mark the purity and quality of your product. This certificate is significant for the mineral water business.
Pollution Control Board
The state government issues you the pollution control certificate. The experts visit your plant to test water, surroundings, the process of production, packaging methodology and hygiene. This ensures that you are not adding up pollution in your area.
Water Sample Check
Water is only the resource that you need to start a packaged water purification plant in India. You need to get a clean source of water for the same. To get samples of this, water needs to be tested by the government. If the results are satisfying, the quality of water is judged. You get the permit.
Pest Control Reports
Hygiene and safety are of utmost importance in this business. You need to get a permit from the pest control department to prove that you are purifying and packaging water under safety and hygiene.
It is the major responsibility of the owner of the factory to arrange a no objection certificate from the municipality or gram panchayat of your local area.
Worker Medical Certificates
As the owner of the plant, you need to get the medical of your employees done and ensure that your workers are not suffering from any deadly communicable disease. Else, you will not get certificate from the health department.
Land Ownership Registration
Land area is important to arrange as soon as you start planning about your new venture. Whether you have bought the land or arranged it on a lease, you need to submit the land papers and share the information with the state authority to get land permits.
Layout Grand Permit
You need to get the plan layout approved and sanctioned from the Gram Panchayat or Municipal Corporation. You will have to submit the agricultural plans of your plant and get them ready from an architect.
Whether you start your purification of water plant on a small, medium or large scale, you need to get power arranged. It will require a lot of electricity. All heavy machines will be installed that will consume huge power. You will have to apply for government electrical connections from the government department. Once you get the permit, the power company will install the commercial meter in your plant.
Certification Of Safety from Power Agency
You won’t be allowed to start production till you acquire a certificate from the power enterprise and department. The experts will come and visit your plant and check out the meter, wiring and safety tools. If they are satisfied with the report, they will give you the certificate and you will be able to start production.
Packaged Drinking Water Plant is a Profitable Business Idea
You can plan to start a mineral water or packaged drinking water business because it is a profitable business plan. Seeing the competition in today’s market, you can establish a small-scale or medium-scale business water purification plant.
You can make huge profits in this business on a small or medium scale only. Imagine if you invest in a large-scale business. You can really make good profits because the demand for packaged drinking water is high too.
There is variation in the cost of packaged water bottles available in the market and the range of customers. You need to take extra care in creating unique and customized labels so that you can sell your packaged water bottles for parties and events. You must also work hard to retain your present customers.
Profits In Packaged Drinking Water Business
Profits in packaged drinking water business lie between 25% to 200%.
You need to understand the normal water and mineral water to know this business in detail.
Normal is the packaged drinking water that is available in bottles too. The surface area water is treated in RO Process, and it doesn’t contain any minerals. It is rather cheap to establish a normal drinking water plant. You can earn a good profit by setting up a RO water purification plant at a low cost.
Promotion and Marketing of Packaged Drinking Water Plant
Wise decisions are required to promote or do marketing of your packaged drinking water bottles. It is very important to face competition in this world and you need to do so in packaged drinking water business also. You must, first of all, understand the offerings made by small, medium or large-scale businesses and know about the major players in this industry. Then you must plan out your marketing strategies. Try to get creative and innovative types of promotions for packaged drinking water and select the shapes of bottles.
Marketing Strategies For Packaged Drinking Water Project Report
- Build Corporate Contacts.
- Focus on putting up details like hotels, gyms, restaurants, sports, or clubs.
- Use social media marketing tools to establish your brand image through twitter, Facebook or instagram.
- Participating in roadshows, and exhibitions.
- Target events hosting for personalized water bottles.
- Sponsoring events or programs.
- Distributing fliers to your nearby location.
- To retain present customers, make sure that the taste and quality of your product are maintained consistently.
Challenges Faced In Packaged Drinking Water Business
Every business face challenges. Let’s explore the challenges faced by packaged drinking water plant.
Packaged drinking water business needs significant capital that is required to set up the plant. You need to look for the perfect location, buy large machinery, hire staff, transport water and a lot more expenses need to be made. Thus, capital requirement is main and urgent.
Technical knowledge of how to operate machinery, and test water is compulsory for the staff to know. Hiring them needs expense and so is needed to train them too.
Packaged drinking water is highly reliable on uninterrupted power supply. Henceforth, you need to keep generators arranged so that operations can be carried out without any delay.
Packaged drinking water gets frequent inspections to check on the quality and hygiene conditions in your water plant.
Change in weather conditions leads to an impact on the availability of water and the quality it needs to be taken care.
Since water is essential for humans. It is required for survival. Therefore, special care needs to be taken while purifying drinking water. You can check out all the important details in packaged drinking water plant project report and know much more about this business plan.