How to Start Mineral Water Plant Business in 10 steps
Do you want to start a mineral water business? Find here a detailed plan guide on how to start a mineral water plant business with costs, licenses, manufacturing process, machinery required, and more.
Packaged drinking water or mineral water manufacturing plant is a profitable business in India. Here in this post, find a detailed business plan guide on how to establish a small-scale package drinking water manufacturing plant with a reasonable investment.
Mineral water is purified water fortified with requisite amounts of minerals such as Barium, Iron, Manganese, etc. which can be absorbed by the human body. However, either you can obtain it from natural resources like springs and drilled wells or it is fortified artificially by blending and treating with mineral salts.
Packaged drinking water means water derived from any source of potable water and subjected to various treatments to meet the prescribed standard before being packed in a plastic or glass container. Water containing less than 250 ppm of total dissolved solids is defined as natural mineral water. Rising health awareness, an increase in tourism, and the easy availability of bottled water have increased the per capita consumption of bottled water in India.
Table of Contents
10 Steps to Start a Mineral Water Plant Business
1. Understand the Local Market
The first step before actually jumping into starting a mineral water plant is to know more about the local demand and the level of competition. It is advised to do detailed market research and collect the necessary information like who are the major players, market volume, pricing, opportunities, etc.
For example, you must have a plan to compete with the major players in the mineral water industry like Bisleri, Kinley, etc. In addition, you will also most probably face competition from local players. It is critical to understand your target consumers. Whether it’s households, offices, or retail outlets.
2. Create a Business Plan
It is a must to have a professionally drafted business plan document to launch a mineral water plant business. You must hire professionally competent people to write your business project plan.
If you are looking for funds from financial institutions, a business plan is a must-have document. All investors will ask for your project plan before deciding on whether to invest or not.
3. Finding a Reliable Water Source
One of the foundational steps in establishing a successful mineral water plant is selecting a reliable water source. Before finalizing a water source, conduct preliminary tests to assess its quality. It is strongly advised to consult with water quality experts or environmental engineers to interpret test results accurately.
Another important aspect is to assess the chemical composition of the water, looking for minerals and impurities. Perform microbial analysis to ensure the absence of harmful microorganisms.
Additionally, understand the local regulations regarding water extraction and usage. Obtain the necessary permits for water extraction from local authorities.
4. Arrange Funds
You will need a considerable amount of investment to start and run a mineral water plant business. If you are short on budget, it is advised to pitch for funds with local banks or private investors. There are various financial institutions that you can contact and pitch for funding in India. If you are unable to get the required funds from banks, reach alternative financial vendors for startup and working capital.
Read: Best Business Loans for Small Businesses
5. Business Registration & License For Mineral Water Plant
In starting a small-scale mineral water plant, you must obtain different registrations and licenses from Government authorities. However, check your state’s law. Here we have listed some of the general criteria.
- First of all, register your business.
- Trade License from Municipal Authority
- Apply for Udyog Aadhaar MSME registration
- Additionally, apply for a Factory License
- Apply for GST registration number
- Licenses from the Food Safety and Standards Authority of India (FSSAI)
- Get a Food Operator License
- BIS Certification. ISI Specification for packaged drinking water
- NOC from the Pollution Control Board
- Get your Business Name Trademarked.
6. Location and Infrastructure
Select a location with easy access to raw materials, a reliable water source, and transportation facilities. Set up a production facility with modern equipment for water purification, bottling, and packaging.
7. Mineral Water Manufacturing Plant Unit Setup
You will need to have a minimum covered area of 500 Sq Ft and an uncovered area of 500 Sq Ft to start a small-scale packaged drinking water or mineral water plant. However, the cost of the plant hugely depends on the packaging facility you want to get. Generally, packaged drinking water is available on the market in the form of 200 ml pouch packing, 500 ml bottles, 1-litre bottles, 2-litre bottles, 5-litre jars, and 20-litre drums.
According to the investment capacity and desired packaging, you must select the right type of plant. Additionally, you can go with a fully automatic plant. Otherwise, a semi-automatic plant is also very effective compared to a fixed-cost investment. We have listed here some of the major machinery and equipment.
- Alum Treatment Tanks
- Reverse Osmosis Plant
- Chlorination tanks made of S. Steel
- Sand filter
- Activated Carbon filter
- Micron filters
- Ultraviolet disinfectant system
- Electronic Doser for alum
- Electronic Doser for Chlorine
- Ozone Generator
- Raw and Purified water collection tanks with motor and accessories
- Automatic rinsing filling and capping machine
- Shrink wrapping machine for bottle
- Miscellaneous tools equipment, pipeline, etc.
- Laboratory testing and Quality Control, Microbiological instruments, etc.
8. Packaging and Branding
Choose appropriate packaging materials, such as PET bottles or jars. Develop an appealing brand identity and ensure compliance with labelling regulations.
9. Distribution Network
You need to establish partnerships with local retailers, supermarkets, and distributors. Also, consider setting up your retail outlets for direct consumer sales.
10. Marketing and Promotion
Create a website and leverage social media for marketing. Also, run promotional campaigns to create awareness, especially during the initial launch.
Mineral Water Manufacturing Plant Cost Synopsis:
Find here a sample investment chart of a small mineral water plant:
| Plant Capacity: 10000 litres/day | Plant & Machinery: Rupees 60.00 Lakhs |
| Working Capital: Rupees 48.00 Lakhs | Total Capital Investment: Rupees 170 Lakhs |
| Return: 32.28% | Break-Even: 33.76% |
The actual cost of a mineral water plant project may change with different assumptions. You can modify the project capacity and project cost as per your requirements.
Frequently Asked Questions
How much does it cost to start a mineral water plant in India?
Depending on scale and location, you will need to invest approximately INR 10 lakhs to INR 20 lakhs. Operational expenses will vary based on production volume and overheads.
Is the mineral water business profitable?
The mineral water business holds substantial potential for profitability. As lifestyles evolve, there is a heightened awareness of health, leading to an increased demand for safe and purified drinking water. In addition, consumers are making a preferential shift from traditional water sources to packaged mineral water.
What is the average profit margin in the bottled water industry?
Profit margins can vary. The industry average is typically between 10% and 20%. However, some premium brands or specialized products make higher margins.
What purification technologies are recommended for a mineral water plant?
Reverse Osmosis (RO) to remove impurities and contaminants. Use ultrafiltration processes for further purification and removal of microorganisms.
