Packaged Drinking Water
Production Capacity : 45 lakh bottles of 1L capacity/annum
Uploaded on : April 2009
Product and its Applications
Most of the water borne diseases emanate from unclean water. Packaged drinking water ensures safe, clean, potable water for human consumption.
Market Potential
Though a large number of manufacturers have recently taken up production of packaged drinking water, yet there exists a wide gap between demand and supply. A number of units can be set up in different parts of the country to meet the local demand in institutions, hotels, restaurants, offices, tourists, households and individuals.
Basis and Presumption
- The unit will work for 300 days per annum on 3 shifts basis.
- The unit can achieve its full capacity utilization during the 2nd year of operation.
- The wages for skilled workers are taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit would construct its own building.
- Costs of machinery and equipment are based on average prices of machinery manufacturers.
Implementation schedule
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
| Scheme preparation and approval | 01 month |
| SSI provisional registration | 1-2 months |
| Sanction of financial supports etc | 2-5 months |
| Installation of machinery and power connection | 6-8 months |
| Trial run and production | 01 month |
Technical aspects
Location
The plant can be located at any suitable place where availability of clean water, power, PET bottles and market access is ensured.
Process of Manufacture
The process consists of following steps:
Quality Control and Standards
As per BIS requirements
Pollution Control
There is no major pollution problem associated with this industry except for disposal of waste water which should be managed appropriately. The entrepreneurs are advised to take “No Objection Certificate” from the State Pollution Control Board.
Energy Conservation
Suitable measures shall be taken to conserve electricity.
Production Capacity
| Quantity | 45 lakh litre/annum (15,000 L/day) |
| Installed capacity | 20,000 L/day |
| Optimum capacity utilization | 70% |
| Working days | 300/annum (3 shifts) |
| Manpower | 17 |
| Utilities | |
| Motive Power | 40 kW |
| Water | 25 kL/day |
Financial Aspects
Fixed Capital
Land & Building
Particulars |
Amount (Rs. lakh) |
| Land 2000 m 2 | 02.25 |
| Built up area 700 m 2 | 42.75 |
| Total cost of land and building | 45.00 |
Machinery and Equipment
Description |
Amount |
| UF based purification system (Sand filter, chlorination unit, UF membranes, sterilisation unit, SS silverisation unit, skid, electronic doser, ozone generator, water collection tanks, Quality control laboratory, deep bore well, delivery van, PC | 42.00 |
| Erection & electrification of machinery & equipment @10% cost | 04.20 |
| Office furniture & fixtures | 02.80 |
| Total | 49.00 |
Pre-operative Expenses
| Consultancy fee, project report, deposits with electricity department etc | 05.00 (Rs. lakh) > |
Total Fixed Capital
| (9.1.1+9.1.2+9.1.3) | 99.00 (Rs. lakh) |
Recurring expenses per annum
Personnel
Designation |
No. |
Salary Per month |
Amount |
| Factory Manager | 1 | 13,000 | 01,56 |
| Production Manager/Chemist | 1 | 09,000 | 01.08 |
| Supervisory staff | 4 | 05,000 | 01.20 |
| Skilled workers | 4 | 03,750 | 01.80 |
| Unskilled workers | 5 | 03,000 | 01.80 |
| 10.80 | |||
| Perquisites @15 % | 01.62 | ||
| Total | 17 | 12.42 |
Raw Material including packaging materials
Particulars |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Pet bottles 1L size including caps, labels | 45 lakh | 3.80 each | 171.00 |
| Chemicals | LS | LS | 008.00 |
| Hydrochloric acid | 3 | 18000 | 00.54 |
| Corrugated boxes | 1,88,000/24 | 23 | 043.24 |
| Total | 222.24 |
Utilities
Particulars |
Amount (Rs. lakh) |
| Power 140,000 kW | 06.10 |
| Water 25 kL/day | 00.40 |
| Total | 06.50 |
Other Contingent Expenses
Particulars |
Amount(Rs. lakh) |
| Repairs and maintenance @10% | 04.90 |
| Consumables & spares, others | 01.90 |
| Transport & travel | 00.24 |
| Insurance @1% | 00.90 |
| Total | 4.20 |
Total Recurring Expenditure
| (9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) | 241.80 (Rs. lakh) |
Working Capital
| Recurring expenses for 3 months | 60.45 (Rs. lakh) |
Total Capital Investment
| Fixed capital (Refer 9.1.4) | 099.00 (Rs. lakh) |
| Working capital (Refer 9.3) | 060.45 |
| Total | 159.45 |
Financial Analysis
Cost of Production (per annum)
| Recurring expenses (Refer 9.2.5) | 241.80 |
| Depreciation on building @ 5% | 002.18 |
| Depreciation on machinery @10% | 004.62 |
| Depreciation on furniture @ 20% | 000.34 |
| Interest on Capital Investment @12% | 019.14 |
| Total | 268.30 |
Sale Proceeds (Turnover) per year
Item |
Qty |
Rate (Rs.) |
Amount (Rs.lakh) |
| Packaged drinking water in PET bottles cap. 1L, packed in cartons of 24 bottles each | 45 lakh bottles | 7.00 | 315.00 |
Net Profit per year
= Sales – Cost of production |
Net Profit Ratio
Net profit X 100 Sales 46.70X 100 315 = 14.8 % |
Rate of Return on Investment
Net profit X 100 Capital Investment 46.70X 100 159.45 = 29.3% |
Annual Fixed Cost Amount (Rs. Lakh)
Amount (Rs. Lakh) |
|
| All depreciation | 6.23 |
| Interest | 19.14 |
| 40% of salary, wages, utility, contingency | 11.03 |
| Insurance | 00.90 |
| Total | 38.43 |
Break even Point
Annual Fixed Cost X 100 Annual Fixed Cost + Profit 38.43 X 100 = 45.1% |
Addresses of Machinery and Equipment Suppliers
- Water Treatment Equipments, Pune
26/6, Gururaj Housing Society, Apte Colony, Bhosari
Pune - 411 039, Maharashtra, India
Email : contact@watertreatmentindia.net , sales@watertreatmentindia.net - Water treatments Expert Inc.
5, Main Road , Khichripur, Opposite Reliance Fresh,
Delhi-11009
Email:wtexpert@gmail.com - Watrion Water and Filter Engg. Pvt. Ltd.
1, Harsivan Apartment, Ground Floor
(Behind Canara Bank),West J.P.Road,
Andheri (West),P.B.No. 7372
Mumbai – 400 059 - Sonalifabs
71, Biren Roy Road (West)
Kolkata – 700 061 - Enviro Tech Utility,
32A, Main Patel Nagar Road ,
Opposite Wings Show Room, West Patel Nagar
New Delhi – 110 008 - Rital Agencies
55 III Main Road , Gandhi Nagar,
Chennai – 600 020 - Ion Exchange India Ltd.
Ticcon House, Dr. E.Houses Road , Mahalaxmi,
Mumbai – 400 011 - Alpha Engineering
158, Pocket E-20, Sector-II,Rohini,
Delhi – 110 085
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
