Do you want to start a mineral water business? Find here a detailed guide on how to start manufacturing mineral water business.
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 250ppm 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.
Is Mineral Water Manufacturing Business Profitable?
The total market was valued at Rs.60 billion in 2013, of which the top five players accounted for 67% of the market share. According to industry experts, the total market value is expected to reach 403.06 Bn at the end of the year 2023.
The increase in the number of domestic and foreign tourists in the past years, and in the years to come, is expected to be a major driver for bottled water sales in India.
Mineral water is one of the fastest-growing industries in the country. However, the Southern part of the country accounts for the major market share. Additionally, Chennai alone accounts for a quarter of the revenue of the packaged water industry. According to the Tamil Nadu Packaged Drinking Water Manufacturers Association, there are 370 authorized water supply units across the state of Tamil Nadu.
The drinking water industry here has seen tremendous growth in the last four years, with hundreds of small-scale suppliers entering the water market. Apart from the domestic and commercial use of packaged water, the Indian Railway is a huge potential market. Water bottles, especially the 2-liter variety, are fast movers among the traveling population. A small-scale mineral water plant is a profitable venture for the regional players also.
Here are the Steps to Start Mineral Water Plant Business
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 of the mineral water industry like Bisleri, Kinley, and Aquafina. In addition, you will also most probably face competition from local players. You will also need to decide whether to concentrate more on bottles or 20-liter jars. As presently, it is seen most small and big offices prefer 20-liter mineral water jars to small bottles.
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. 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 where 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.
4. Business Registration & License For Mineral Water Plant
In starting a small-scale mineral water plant, you must obtain different registration and license 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 Factory License
- Apply for GST registration number
- Get Food Operator License
- BIS Certification. ISI Specification for packaged drinking water is IS 14543:1998 and for packaged natural mineral water is IS 13428:1998.
- NOC from Pollution Control Board
- Get your Business Name Trademarked.
5. Mineral Water Manufacturing Plant Unit Setup Cost Machinery
You will need to have a 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-liter bottles, 2-liter bottles, 5-liter jars, and 20-liter 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 comparing 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.
6. Mineral Water Manufacturing Plant Production Process & Raw Materials
Mineral water manufacturing production follows various steps.
First of all, collect the raw water that you want to process in tanks. A known quantity is pumped into the above tank where the water is dozed with alum for coagulation with heavy metals or insoluble matters.
Additionally, coagulation allows the water to settle for an hour. Also, you can remove the impurities by Reverse Osmosis techniques.
The supernatant water is taken to the chlorination tank where primary disinfection is brought about by
bubbling chlorine gas.
Then pass the water through sand filters for trapping undissolved impurities. Additionally, after sand filtration passes the water through Carbon filters for removal of odor, and color and also for dechlorination.
It is then passed through a series of micro fillers comprising 5 microns, 1 micron, and 0.4-micron filter followed by an ultraviolet disinfection system for terminal disinfection.
The last step is packing. According to the requirement, you have to pack through an automatic rinsing, filling, and capping machine fitted with an Ozone generator. Additionally, you can also go for shrink-wrapping the bottles after capping. Finally, pack the bottles in corrugated boxes of one dozen each.
Apart from raw water other require raw materials are chemicals, reagents, pouches, bottles, jars, and outer cartons. Additionally, in the mineral water plant, a major requirement is electricity.
7. Mineral Water Manufacturing Project 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 requirement.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.