There is no doubt, water is one of the most essential commodities needed for survival by all living organisms.
The growth of the middle class in Africa in general, and Nigeria to be specific, has led to a need for hygienically produced and well packaged food products like bottled water.
The market for packaged water is high and cut across all parts of the country. With a population of over one hundred and eighty million (180,000,000) people, and an estimated national population growth is 5.7% per annum, Nigeria has a large and sustainable market for packaged water.
The demand for bottled water is very high because it is consumed on a daily basis, by all people of all ages, race or religion. The raw materials needed to produce bottled water is readily available in abundance in Nigeria.
Also Read: Setting up Your Small Scale Rice Factory With Less Than 5 Million Naira.
Setting Up Cost
We prepared a well researched business plan that envisaged a packaged water producing plant with a production volume of 1250 packs (12 x 75cl) bottles and 4000 bags of sachet water per day.
You will need a building to set up your factory in. You will also need an industrial borehole as your water source. Cost of these depends on your location.
The machinery you need include:
- Water treatment plant which consist of the following:
- Reverse Osmosis System
- Ozonator/Ozone Generator
- Industrial Micron Filters
- Industrial Ultraviolet Sterilizer
- Automatic Bottling, Rinsing, Filling and Capping Machine.
- Sachet Filling and Sealing Machine
- Automatic Shrink Packing Machine
- Semi-Automatic PET Blowing machine
- Batch Number Coding Machine
- Moulds
The cost of the complete set of machinery is estimated to be twenty one million, nine hundred and fifty thousand naira (N21,950,000). You will also need to budget about one million naira (N1,000,000) for installations, test-run and training for your staff.
You will also need vehicles for transporting your products to customers. It is very important to build a strong distribution channel for distributing your products to customers. The success of this business is deeply rooted in the quality of your product and your ability to reach and quickly sell to customers.
Profitability
With an average selling price of one pack of bottled water (12 x 75CL) at five hundred and fifty naira (N550) while that of a bag (20 sachets) of sachet water at seventy naira (N70), a company that is able to produce and sell 2500 packs (12 x 75cl) of bottled water and 8000 bags of sachet water weekly can turn in a gross profit of over three million naira monthly.
Get Our Packaged Water Production Business Plan
Buy our bottled water production business plan at the promo price of N10,000 only and get the following free e-book.
Start, Run and Grow Your Business: This ebook is loaded with tips and advice for anyone starting a new business, and existing businesses looking to take their company to the next level.
Note: Promo price ends soon, after which you will have to pay the original price of N20,000.
What is the minimum capital investment for this business please. I also will need to checkup and compare Laundry business as well. I’d appreciate a rough estimate of the investment cost