Water is essential commodity for all living beings on the planet. It is a precious commodity because we cannot live without it. Not long ago, people used to drink water from wells, rivers, ponds and hand pumps. But now they prefer mineral and packaged drinking water. When people travel from one place to another, they tend to carry packaged water. Even if they stay out of station for a few days, they prefer drinking packaged water.
There are other reasons as well for the preference mainly health. As it contains many mineral salts and sulfur compounds which are amazing for health. With the increasing demand for mineral water, there are excellent opportunities for aspiring entrepreneurs for setting up mineral water plant. It is a good investment for established businessmen and aspiring entrepreneurs.
In this article, I will talk about how to start a mineral water plant with all the information you need for starting the business. Before we start talking about the details, I will tell you a little bit about my qualification, experience and expertise. After graduating with a degree in chemical engineering, I started working for a leading air separation plant company in India. I stayed here for five and learned a lot about making industrial plants. Thereafter, I joined one of the largest companies selling packaged water. This is where I got expertise for setting up mineral water plants.
Brief introduction of mineral water
A mineral water plant is an industrial setup for producing water with high purity which is then delivered to clients. The plant not only purifies raw water but also packages it for selling. And, there has been consistent increase in the expansion of the mineral water market. The industry has witnessed around 30-40% rise in revenue over a period of 3-5 years. No denying, it is a lucrative business but ensure that you go about it with proper tools and information. The market for packaged water is expected to almost triple in 2-3 years. Investors need to understand the market, compliances and quality standards.
Steps to Start a Mineral Water Plant Business
Starting a business needs planning, arranging the necessary finance, permissions, etc. It is imperative that you have got good grip on the market scenario. Some of the important steps are discussed below.
Know the market
Since water is an essential commodity so the market is going to be huge. As people continue to become health-conscious the demand for mineral water will continue to grow. Excellent demand promised good ROI and looks good investment considering future projections. Both big and small businesses in the industry earn excellent profits.
However, for starting a mineral water business it is mandatory to obtain the required licenses and permissions from nodal authority of GOI. As might be aware getting governmental approval is time-consuming process. So it is imperative that you apply for the licenses well in advance.
Deciding location for the business
Choosing the location for the business is also important. And, you must arrange 1000 sq ft space for setting up the water plant. Besides, it is also very important that the location have access to consistent water and electricity supply. Moreover, it is better if you get the space near a market.
Acquire required machines
For purification and bottling of mineral water you need to buy high quality machinery. Depending upon your budget you can either opt for automatic or semi-automatic machines. However, it is better if you could acquire sufficient knowledge about machine before making the purchase.
Raw materials needed for mineral water
Needless to say, you would require water raw water from the water source. Of course, you may need to dig deep to get raw water. Besides, you will require others including cartons, bottles, chemicals, bottle caps, regents, etc.
Conduct Market Research for Mineral Water Plant Business
Before entering the business, it is important for you to conduct an excellent market research. This will get you conversant with market trends, margins, ROI, investment, etc. Besides, the market research will also provide feasibility of profitability in your city. Further, you will get a fair idea how long it will take you to breakeven.
Machines and Equipment Required
Setting up the plant would need you to purchase various kinds of machinery essential for generating high quality mineral water. Important machinery you would need to purchase is as under:
- RO system
- Treatment tank
- Chlorination tanks
- Storage tank
- Sand filter
- Micron filter
- Activated carbon filter
- Ozone generator
- Water dispenser & sterilizer
- UV disinfection system
- Electronic dozer for alum and chlorine
- Water Filling Machine
- Electronic dozer for alum and chlorine
Documents & License starting the business
For starting any business, there are legal and other requirements that you must fulfill to avoid penalties. Permissions and licenses needs for starting mineral business are:
- GST registration
- FASSAI certificate
- Pest control license
- Water test report from a reputed laboratory
- Pollution control certificate
Manpower Required for Mineral Water Business
Running a business requires finances, vision and excellent staff. However, setting up the mineral water plant is relatively easy but it is difficult to return profits over a period of time. With hard work and strategic thinking, you can achieve consistent performance. Moreover, you must recruit a dedicated team of professionals who are committed and dedicated to achieving their business targets. Required manpower includes plant supervisors, labor, manufacturing staff, accountants, office staff and machine operators. And, it is important to ensure your employees are active and goal-oriented.
Investment Required to Start a Mineral Water Business
For starting a mineral water plant, you must have space for installation of plant and storage of water. Additionally, you also require adequate space for office. Besides, the investment will depend on whether you are planning to start a small, medium or large scale mineral water plant. Small to medium scale business would require investment from Rs 1 lakh to 50 lakhs. And for a large scale you need to invest around INR 80 lakhs.