Complete Business Plan to start a Mineral Water Plant: Requirement, Investment, Profit

Water is the fundamental and primary need of each and every person. Rather than normal tap water people are moving towards mineral and packaged drinking water for their health. People prefer packaged water while travelling to another place or stay for few days in any new place. Another reason of expansion of the uses of mineral water because it contains different mineral salts and sulfur compounds that have many benefits our health.

In this way, the high demand for mineral water gives more opportunities to set up a mineral water plant. Due to its never ended demand many business entrepreneurs invest good amount in the mineral water business. It will bring benefit and expansion to their business.

If you are going to start a mineral water business, you want to be aware and have the right information about the mineral water business. In this blog, we’ll discuss about how to start a mineral water plant, its requirement, investment, profit, risk factors and many necessary details. This blog will provide all information that you must know before starting the business.

About The Mineral Water Plant Business:

A mineral water plant is usually a mineral water manufacturing unit that guarantees purity of water and conveys it to clients. The mineral water plant is engaged with purifying raw water, packaging it, and marking it.

In this segment India has seen a 30-40 percent gain in revenue over the most recent couple of years, and it is expected to rise every year. Therefore set up a mineral water plant in India may be very productive. The mineral water business market is expected to reach from 160 billion in 2021 to 403 billion in 2023. So, investors invest in mineral water business and set up a plant for benefit of him and the people.

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Steps to Start a Mineral Water Plant Business:

Mineral water is good for health and it contains many minerals which give health benefits. Mineral water business is a never ended and profitable business. It is very good segment for a start-up. Here we are giving the steps how to start the business-

• Understand the market

Water is the basic necessity for everyone. People are now very health conscious so the consumption of mineral water is increasing. It is the fastest growing segment and gives good ROI.  Not only large scale but also small scale mineral water industry earns good profit. There is very good market for mineral water business and every year it is increasing.

• Get licenses

To set up the business you need to obtain few licenses from the authority of Govt. of India. You should apply for the licenses few months before because it takes some time to get.

• Area for the business

During the planning you must choose the suitable area for plant. The space must be 1000 sq. ft. for the plant where the consistent water supply and electricity supply is mandatory. You have to set up office and plant in the same place then you require more than 1000 sq. ft.  A place near the market is the ideal area.

• Purchase required machines

In the mineral water business you need machines for purification and bottling of mineral water. As per the budget you can install the fully automatic machines or semi-automatic machines. But before purchase the machines you need to know the details about the machines.

• Requirements of raw materials for mineral water

Mineral water business requires crude water from the water source. You need to do deep boring for the raw water. Apart from that, the other raw materials are-

• Reagents
• Bottles
• Bottle caps
• Chemicals(Chloride, Sodium, Magnesium and Calcium)
• Cartons

Conduct Market Research for Mineral Water Plant Business:

Water is essential for our life and people nowadays are very health conscious so they prefer consume packaged mineral water while going out. The market of the mineral water is very good and every year it is growing. A thorough market research before starting the business gives the insightful report. Any market fluctuation and economic condition does not affect mineral water business.

According to a market survey the global bottled mineral water market size was about USD 303.95 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030. The packaged mineral water business occupied 18% of the total beverage sales in the world.

Location for the Mineral Water Plant Business:

While set up a mineral water plant, choosing the best and ideal area is a crucial part. There should be specific areas required for both production and for office. The minimum area required for mineral water plant is 1000 sq. ft. While choosing the area you must have availability of water resource. Do not to choose that place where scarcity of water persists. The place must have consistent water supply and electricity supply. The plant area to be very much connected with the market for supply runs in crucial times and any emergencies. The area should have easy street accessibility.

Raw materials for the Mineral Water Business:

To set up a mineral water plant you require raw materials that are easily available from natural sources. The following raw materials are required for mineral water business:

• Reagents
• Bottles
• Bottle caps
• Chemicals(Chloride, Sodium, Magnesium and Calcium)
• Cartons

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Machines and Equipment Required:

Documents & License Required for Mineral Water Business:

To open any business legally, you need to obtain few licenses from authorities to avoid any penalties or legal consequences. The licenses required for mineral water business are:

• ISI Certificate from BIS (Bureau of Indian Standards)
• GST Registration
• FSSAI Certificate
• Pollution Control Certificate
• Water Test Report from Certified Laboratory
• Pest Control Certificate

Manpower Required for Mineral Water Business:

The progress of each and every business is directly related to the hard and smart work by the team working for it. Setting up a mineral water plant is not so tough but consistent effort needs to improve the business. The first thing you need while planning to start the business is to make an efficient manpower team who can easily understand the work and dedicated towards the work. It includes labors, office staffs, accountants, manufacturing staffs, plant supervisors, machine operators etc. Recruit peoples who are active, dynamic, and committed to delivering adequate result in your plant.

Investment Required to Start a Mineral Water Business:

The mineral water plant includes a plant and an office for official work. So, the investment is completely depending on the small, medium and large scale. When the capacity, production, and packaging of purified water increase the cost of business also increases. It can range from the 1 Lakhs to 50 Lakhs. If you want to set up a large scale plant then you need more than 75 lakhs. It is an approximate amount; you can visit a plant and can talk to them for knowing the actual investment for different sizes of mineral water business.

Profits & Margin of the Mineral Water Business:

Here the calculation of yearly profit in this business:-

• If daily production is 8000 bottles i.e. yearly production will be 8000 x 365 days = 2920000 Bottles in a year
• 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 in a year
• Total profit = Total turnover – cost of production

Now need to calculate the cost of production of 24333 crates. In the cost of production salary to staff, raw materials expenses, electricity usage, laboratory expenses, office expenses and other expenses will be included.

The cost of production of 24333 crates of mineral drinking water will come around 12 lakhs per month. So cost of production will be 1 crore 44 Lakhs in a year.

So the Total Profit will be 50 lakh in a year. It is a assumption so don’t follow fully on this data. Consider it on your own risk.

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Marketing for Your Mineral Water Plant Business:

Presently there are many good and strong marketing techniques and strategies are available. You have to apply digital marketing techniques along with the traditional marketing. You can talk to the advertiser who can manage your entire sales and marketing work. The advertiser can advertise your product through celebrities. You have to make your all online platforms like website, social media sites etc.

Make distributors and suppliers in your local market. Make banners, leaflets and hoardings for your brand and use those in proper area. Through digital marketing you can easily reach to your targeted location and audience. The smart techniques can easily create strong impact of your brand in the market.

Risk of Mineral Water Plant Business:

Mineral water business is very profitable business. Different businesses have different challenges and risks. There are some common challenges faced by mineral water business owners, those are as follows-

• Mineral water business requires adequate fund to set up a plant, an office area, transportation of water, purchase large machinery and their maintenance.
• Technical knowledge of machine operating, water testing is mandatory for the staff. So you need to hire experienced people with good salary package which is little expensive and also required to train as per your plant operations.
• The water business is completely dependent on power supply; otherwise the plant is unable to run. Therefore, arrangements for generator sets must be there to run operations during power outages.
• In a mineral water business it is always required to check water quality and hygiene conditions before bottling.
• In summer the water level downs and in monsoon there might be change in the water quality, so take extra care during summers and rainy season.

There are some popular company available in India, one of the company is Bisleri, you can get the information by video given below:

Conclusion:

The production of mineral water is a complex process where untreated water goes through various filtration processes. The expense of setting up a mineral water plant business is direct to the volume of pure drinking water that you wish to make. Thus, it is suggested that you have to make a clear and proper business plan prior to putting capital in this business.

You can gain a good profit as well as you will provide job opportunities in your area. You will be able to help peoples who are seeking job and supply your clients with clean and safe drinking water. In this blog we have given all necessary information regarding mineral water plant business. Hope it has helped you before your business planning.

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FAQ(Frequently Asked Question):

Q. What is the making cost of drinking mineral water ?

Ans- The average making cost of mineral water will be 2-3 rupees/ litre. If you have own bottling plant then your making cost for per bottle will less.

Q. How to get raw water source for a mineral water business ?

Ans- For a mineral water business people go for the deep boring and get the raw water from that.

Q. What documents required for starting the mineral water business ?

Ans- The following licenses required for mineral water business:

• ISI Certificate from BIS (Bureau of Indian Standards)
• GST Registration
• FSSAI Certificate
• Pollution Control Certificate
• Water Test Report from Certified Laboratory
• Pest Control Certificate

Q. What is the difference between a packaged water plant and a mineral water plant ?

Ans- The packaged drinking water does not contain minerals and in the mineral water all necessary minerals are found like- sodium, calcium, potassium, magnesium etc. While in packaged drinking water we reduce total dissolved solid from water through RO process. In minerals water we use natural sources like spring water where we found natural minerals, we purify that and if required add minerals.

Q. How much fund is required to start a mineral water plant ?

Ans-It is fully depending on the size of the plant. If you want to start a small plant then you need small amount and the amount will increase with the size medium and large scale. It can range from the 1 Lakhs to 50 Lakhs for small and medium scale plant. If you want to set up a large scale plant then you need more than 75 lakhs.

We hope that you would have liked reading this blog post on How to start a mineral water plant in India ? For more such informative articles, keep visiting YMW Solution.

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