Mineral Water Plant Project Business Plan, Profit Margin & Cost Estimation

0
377
mineral water business plan

Do you want to start your own mineral water plant business in India? If yes, then you have come to right place..! In this article, I am sharing step by step process of starting a mineral water plant or packaged dring water plant in India. Demand of packaged drinking water is growing exponentially in small towns and cities in India. This is evergreen business and there is place for everyone who want to step into this opportunity. Investment required in this business depends upon many factors, few of them are given below :-

  1. The production capacity of the plant
  2. The place in which plant is being setup
  3. Transportation cost
  4. Type of water used as source or feed water and its chemistry
  5. The type of plant and production capacity per hour – such as bottled, pouches, jar, etc.

There is room for everyone in this business. You can setup small plant with the investment of Rs 15 lakhs or you can go for big plant with high production capacity in 75 lakhs.

Below is a list of important points which I will discuss in this article:-

  1. Difference between mineral water plant and packaged drinking water plant
  2. What are the documents and licenses required to run this business in India
  3. Machinery required for mineral water plant and machinery cost
  4. How to setup your plant and cost estimation
  5. Water treatment process
  6. Packaging and suppy
  7. Profit margin in this business
  8. How to grow your business – Further opportunities

Let’s get started –

What is the difference between packaged water and mineral water plant?

Before getting into detailed business plan, you need to understand the difference between packaged drinking water plant and mineral water plant. Many people do not know the differences and get confused at the very beginning of their business venture.

Packaged Drinking Water or Bottled water Plant – In this plant, we process borewell water and we reduce the TDS(Total Dissolved Solid) in borewell water with the help of RO process i.e Reverse Osmosis Process. Packaged drinking water does not contains any minerals.

Mineral Water Plant – In this plant, we use water from natural sources like spring water and mountain water. These waters contain mineral which is beneficial for human consumption. In mineral water plant we process and add minerals to water if required. Minerals found in mineral water are sodium, calcium, magnesium, potassium, etc.

In this article I will share information for setting up of packaged drinking water plant which is also known as bottled drinking water plant.

What type of licenses are required?

The following licenses and documents are required for setting up a bottled water plant in India:

  1. Small scale industry registration certificate
  2. AOA and MOA of the business
  3. ISI certification from Bureau of Indian Standards (BIS)
  4. Pollution control certificate from local pollution board office
  5. Feed water test report from laboratory
  6. Pest control certificate

Steps involved in packaged driking water production

  1. Identify source of raw water – This is the first step in which you will decide about the source of water which you will use in production of packaged drinking water. The source of water could be bore well water, muncipal supply or other sources in which treatment is possible.
  2. Store raw water – The next process is to store raw water in raw water storage tank with the help of pumping system. Submercible pump could be used in case of bore well water.
  3. Water treatment system – In water treatment process, we use clorine dosing system, water softening process, reverse osmosis (RO), UV sterilization and Ozone disinfection.
  4. Testing of water – In this process we test purified water in inhouse water testing laboratory. In the laboratory, water is tested for micro biological and chemical parameters. We will discuss about type of laboratory requiment later in this article.
  5. Purified water storage (Bottles/Jars/Pouch) – Production machinery is required to blow blottles and store purified water in it. Similarly, machines are available for storage in jars and pouches.

Process Involved in purification of raw water (Technical Aspects)

  1. Coagulation process – This is the first step in which we add Alum chemical in raw water to remove impurities. The Alum chemical produces positive charges which stick together with negative charge of the particals and forms large particles which can be removed easily. After coagulation process, water is allowed to settle for 1 hour.
  2. Reverse Osmosis – With the help of RO process we remove dissolved impurities such as salts from water.
  3. Chlorination of water – This process is used to kill bacterias and other micro organism with the help of bubbling chlorine gas in chlorination tank.
  4. Sand filteration – The water is then passed through sand filters to remove undissolved impurities.
  5. Carbon filteration de-chlorination – After sand filteration process, we then pass water through carbon filter which removes odour and colour. Dechlorification also takes place using carbon filters.
  6. Packing and bottling – Packing and bottling is done with the help of machines.

Packaged Drinking Water Plant Cost Estimation

PARTICULARS QUANTITY PRICE (in Lakhs)
RO Plant – 2000 ltr 1 3.50
Alum Treatment Tanks 2 0.70
Chlorination Tank (STEEL) 1 0.50
Sand Filter & Carbon Filter 1 – 1 0.90
UV Disinfectant System 1 0.25
Raw water tank 1 0.30
Purified water tank 1 0.30
Pumping motors 2 0.40
Bottling Machine Automatic 1 6
Lab Equipments 1 1
Miscellaneous Tools 1
TOTAL 14.85 LAKHS

From the above table, we come to know that cost of machines for starting mineral water plant is around 15 lakhs rupess. Apart from machinery, you will need a proper location for plant installation and some basis furniture.

After the installation of plant, you have make a proper business plan for production of bottled drinking water. That business plan will include following details –

  1. Salary and wages for staffs
  2. Working capital per month
  3. Production target
  4. Other expensenses in raw materials if any

Production Capacity & Profit Margin Calculation

Total Production of your plant will depend on how many hours you will work i.e number of shifts assuming that 1 shift is of 8 hours. Suppose you will 2 shifts i.e 16 hours. Therefore, you can produce 8000 bottles in 8hrs.

Profit Margin Calculation –

Now we will calcute yearly profit in this business:-

  • Daily production is 8000 bottles i.e yearly production will be 8000 X 365 = 2920000 Bottles
  • No. Of crates – assuming one crate has 12 bottles – 2920000/12 = 24333 crates yearly
  • Selling price of one crate will be – Rs 80 per crate
  • Total turnover – 80 x 24333 = Rs 1 Crore 94 lakhs
  • Total profit = Turnover – cost of production

Now you have to calculate the cost of production of 24333 crates. The cost of production will include salary to staff, raw materials expenses, electricity usage, laboratory expenses and other expenses.

The cost of production of 24333 crates of packaged drinking water will come around 12 lakhs monthly. So annual cost of production will be 1 crore 44 Lakhs

Total profit = 1 crore 94 lakhs – 1 crore 44 lakhs = 50 lakhs Annualy

Branding and Marketing

As the demand of packaged drinking water is increasing rapidly, you have to capture the market and start promoting your brand as soon you start production. Include marketing expenses in your business plan and use it accordingly.

SHARE

LEAVE A REPLY

Please enter your comment!
Please enter your name here