BOTTLED DRINKING WATER - Project Report Business Plan

Bottled water is a popular product that is widely consumed in India and around the world. There are different types of bottled water available in the market, each with its own unique characteristics and benefits. The popularity of bottled water is driven by its convenience, perceived purity, and health benefits. In this blog post, we will discuss the bottled water industry, its products, applications, industry outlook, and marketing potential.

NeuSource Startup Minds India Ltd. is a professional consultancy firm that provides startup registration, legal compliance, tax, and other advisory services to entrepreneurs and startups in India. The firm has experience in helping businesses set up and grow their operations, including those in the bottled water industry.

Products and Application:

The bottled water industry in India has seen significant growth in recent years, driven by the surge in advertising by industry players and the increased health awareness among consumers. The different types of bottled water available in the market include:

1. Artesian Water: water contained within an artesian basin

2. Fluoridated Water: contains added fluorine

3. Ground Water: from underground sources

4. Mineral Water: from mineral spring or fortified with minerals

5. Purified Water: produced by distillation, deionization, reverse osmosis, or other suitable processes

6. Sparkling Water: contains some amount of carbon dioxide

7. Spring Water: water flows on earth from an underground natural water source

8. Sterile Water: Water totally sterilized for specific uses

Desired Qualification for Promoter:

To set up a successful bottled water business in India, the promoter should have a good understanding of the bottled water market in the area where they plan to set up their plant. They should also be aware of the type of treatment required for the water source to be used and have exposure to FSSAI regulations.

Industry Outlook/Trend:

A growing number of people in India are seeking alternative sources of potable water as regular infrastructure upgrades make it more difficult to access clean water in many regions. Humans are on the lookout for TDS- and bacteria-free treated water. India's bottled water market expands by 20% every year. Water in twenty-litre jars is increasingly popular for usage in homes, workplaces, and community gatherings. Bottled water in India has a bright future, but businesses would benefit most from fewer rivals if they were located where there is less demand.

Market Potential:

1. The per capita consumption of bottled water in India is on the increase due to a rise in health awareness, poor quality of tap water, and the easy availability of bottled water.

2. The packaged bottled water industry is currently dominated by the top five players, including PARLE (BISLERI, BAILLERY), PEPSICO (AQUAFINA), COCA COLA (KINLEY), DHARIWAL (OXYRICH), and NOURISH CO. (HIMALAYAN).

3. The market for bottled water is mostly driven by the retail sector, but there is a growing demand for bulk water or bottled water cups at social functions and corporate events.

4. The small non-tier cities and towns represent an untapped market opportunity for regional players.

5. To capture all segments of society, players have started foraying into packaged water pouches at low price points.

Marketing Issues:

1. The established players in the industry face competition from smaller local players and the unorganized sector that often imitates their trademarks.

2. Poor infrastructure in small non-tier cities and towns poses challenges to penetration by leading bottled water brands in India.

3. While players have started foraying into packaged water pouches at low price points, this is still in the experimental stage.

4. The industry is heavily regulated, and businesses need to comply with relevant regulations and standards to operate.

Raw Material Requirements:

1. The raw materials required for manufacturing bottled water are adequate and proper quality water resources like well, bores, rivers, etc. and some additives.

Manufacturing Process:

1. Tanks are used to store the raw water until it is ready for processing.

2. For the purpose of coagulation with heavy metals or insoluble materials, water is pumped into the above tank and dosed with alum.

3. After coagulation, an hour is given for the water to settle.

4. Reverse osmosis could be used to filter out the contaminants.

5. The supernatant is then sent to the chlorination tank, where bubbling chlorine gas performs the initial stage of disinfection.

6. Undissolved contaminants are removed by running the water through sand filters.

7. After the water has been filtered by sand, it goes through carbon filters to get rid of chlorine, bad taste, and odours.

8. After going through an ultraviolet disinfection system for final disinfection, it goes through a series of micro filters including 5-micron, 1-micron, and 0.4-micron filters.

9. An Ozone-powered automatic rinsing, filling, and capping equipment is used for packaging in 1-litre PET bottles.

10. After the caps have been placed on the bottles, they are shrink-wrapped (optional) and placed in corrugated boxes of 12.

Profitability Calculations:

Profitability calculations are a crucial part of any business venture. In order to ensure that your bottled drinking water business is profitable, you need to make sure that you have a good understanding of the costs involved. Here are some key profitability calculations to consider:

1. Production capacity: The proposed unit will have a production capacity of 360 lakh bottles per year.

2. The unit cost of power: The unit cost of power is taken at Rs. 8.

3. Depreciation: The depreciation on the building is taken at the rate of 5% whereas, for plant and machinery, it is at 10%.

4. Sales price: The average sales price of a drinking water bottle is taken at the rate of Rs.9 per bottle for the proposed project.

Statutory/Government Approvals

Before setting up a bottled drinking water business in India, you need to obtain various statutory/government approvals. Here are some of the approvals you will need:

1. ISI and FSSAI license: There is a statutory requirement for ISI and FSSAI license for setting up a bottled drinking water production facility.

2. MSME and GST registration: You will need to obtain MSME and GST registration.

3. IEC code for export of end products: If you plan to export your products, you will need to obtain an IEC code.

4. Local authority clearance: You may need to obtain local authority clearance for shops and establishments, fire and safety requirements, and registration for ESI, PF, and labour laws, if applicable.

5. State Pollution Control Board: You may need to contact the State Pollution Control Board wherever it is applicable.

NeuSource Startup Minds India Ltd. can assist you with obtaining the necessary statutory/government approvals for your bottled drinking water business.

Backward and Forward Integration:

Once your bottled drinking water business is well established, you may want to consider backward and forward integration. Backward integration involves producing PET bottles for filling water, while forward integration involves introducing water in 200ml pouches and 20ltr jar. Here are some benefits of backward and forward integration:

1. Cost savings: By producing your own PET bottles, you can save on production costs.

2. Control over quality: By producing your own PET bottles, you can ensure that they meet your quality standards.

3. Diversification: By introducing water in pouches and jars, you can diversify your product offerings.

NeuSource Startup Minds India Ltd. can assist you with backward and forward integration for your bottled drinking water business.

Training Centers/Courses

If you are new to the bottled drinking water industry, it is important to get proper training. There are various training centres and short-term courses available in India. Here are some of the options:

1. Indian Institute of Food Processing Technology, Thanjavur, Tamil Nadu

2. Central Food Technological Institute, Mysore

By getting proper training, you can improve your chances of success in the bottled drinking water industry.

In conclusion, starting a bottled drinking water business in India can be a profitable venture. By following the steps outlined in this article, you can set up a successful business. NeuSource Startup Minds India Ltd. can assist you with obtaining statutory/government approvals and with backward and forward integration for your bottled drinking water business.

How Can NeuSource Startup Minds India Ltd. Help?

Neusource Startup Minds can help in setting up a bottled drinking water business in India by providing startup registration, legal compliance, tax, and other advisory services. Here are the bullet points for how they can help:

1. Provide assistance in understanding the bottled water market in the area where the plant is planned to be set up.

2. Help with the type of treatment required for the water source to be used and have exposure to FSSAI regulations.

3. Offer guidance on compliance with relevant regulations and standards to operate in the heavily regulated industry.

4. Provide advice on profitability calculations, such as production capacity, the unit cost of power, depreciation, and sales price.

5. Help with company registration, legal compliance, tax compliance, and other advisory services to set up and grow the business.

6. Provide guidance on marketing strategies to compete with established players, penetrate new markets, and comply with industry trends

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Santosh Dantani

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