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

Mineral Water Plant Project
Business Plan, Profit Margin &

Cost Estimation
ByEditorial StaffFebruary 19, 2018
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

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Mineral Water Plant Project

Business Plan, Profit Margin &

1. The production capacity of the plant

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

1. Difference between mineral water plant and packaged drinking water

Let’s get started –

What is the difference between

Packaged Drinking Water or Bottled water Plant – In this plant, we process

In this article I will share information for setting up of packaged drinking

What type of licenses are required?

1. Small scale industry registration certificate

Steps involved in packaged driking

Process Involved in purification of raw

Packaged Drinking Water Plant Cost

1. Salary and wages for staffs

Production Capacity & Profit Margin

Profit Margin Calculation –

Now we will calcute yearly profit in this business:-

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

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