Project Feasibility Report

Pearl: A Water Bottling Plant

OUR TENSION YOUR SATISFACTION

Natural mineral water and Packaged drinking water

• Natural mineral water is water from underground source that is packaged close to the source and meets the quality standards without processing.

• Packaged drinking water is from any source and has to be treated and disinfected, a process that could involve filtration, UV or ozone treatment, reverse osmosis before it is fit for human consumption.

Natural mineral water v/s Packaged drinking water

Natural mineral water

• Water containing dissolved mineral salts or gases, such water is especially considered to be healthy to drink.

• The water is not at all chemically treated.

• There is a small process for filtration in which no addition is done. In fact the natural contents remain in water.

Packaged drinking water

• Packaged drinking water is the sealed water, which ensures that the water will be safe, clean, and potable for human consumption.

• The water is chemically treated. For example: Chlorination

• It is chemically filtered.

Treated

Description

Filtration

Natural mineral water v/s Packaged drinking water

Natural mineral water

• Longer shelf life because of pure and natural consumption.

• It is healthier for body because no chemicals are added.

Packaged drinking water

• Synthesized product, and has a shorter shelf life.

• It is not as healthy as compared to mineral water because it is chemically treated.

Healthy

Shelf life

PROJECT PROFILE

This study has been made with the focus of Banda (U.P.) city. Banda (U.P.) has been facing the problem of water shortage. The

population has been growing at the rate of 3.48 annually. The proportion of Urban and rural population in Bundelkhand is 48.8 and 51.2 respectively.

It also shows that the major proportion of the population is in the cities and Banda (U.P.) comes out to be a major target market for new product.

Three sources of water can be used for purification purposes on commercial basis:-

• Ground Water • River Water• Water Supply from BMC (Banda municipal corporation in Banda (U.P.))

Basic requirements for setting up a packaged drinking water plant

There are mainly 4 sections in a packaged drinking water plant : Water Treatment, Bottling, Quality Control (Lab) & Overall Utility. Generally, a standard 2000 LPH packaged drinking water plant needs :-

• Total Space : 5000 Sq. Ft built up area with 3000 Sq. Ft of covered area

• Power : 65 HP

• Raw water needed :- Approximately 3000 LPH of raw water is required of which 70 % will be used and 30 % will be reject. This is however an indicative quantity as it is largely dependent on the TDS of the raw water.

• Project Cost : Rupees 75 Lakhs approximately which includes the cost of machinery, utilities, furniture etc. (Note – the cost is approximated in 2015).

• The unit is proposed to produce 57.55 lakh bottle (1 litre) of packaged drinking water per annum.

Pricing of mineral water and packaged drinking water

• According to market sources, while a litre of packaged drinking water is Rs.10-12, natural mineral water starts at about Rs.20 a litre and can go up to Rs.125.

• On average it takes an estimated 1.39 litres of water to produce a litre of bottled water according to International Bottled Water Association

Cost of Production for 1 Ltr Bottle

Sr. No. Description Cost [Rs.]

1. Cost of Bottle + Cap 2.90

2. Shrink Label 0.30

3. Shrink Cap 0.80

4. R.O. Water 0.16

5. Misc. Cost 0.10

6. Packing Cost 0.20

7. Interest on Capital 0.05

8. Operating Cost 3.79

9. Selling Cost 5.50

Margin 4.20

Cost of Production for 20 Ltrs Jar

Sr. No. Description Cost [Rs.]

1. Cost of Water 0.60

2. Cost of Maintenance 1.00

3. Transportation 1.00

4. Interest on Capital 0.60

5. Misc. Cost 0.40

6. Operating Cost 3.60

7. Selling Cost 20.00

Margin 16.40

Licenses/approvals required

The following licenses are to be obtained for setting up a packaged drinking water plant in India :-

• Small scale industries registration • ISI certification from Bureau of Indian Standards • Pollution control certificate • Water test report from an authorized laboratory of raw water • Pest control certification • Certificates from chemist, microbiologist • Medical certificates for workers • No objection certificate (NOC) from Gram Panchayat, if applicable

Licenses/approvals required

• Registration of trademark • Documents related to ownership of land/lease of land for setting up

the plant • Memorandum of association of companies/partnership deed, if

applicable. • Electrical load sanction • Sanction layout plan

It is compulsory for all the manufacturers who intend to set up the processing unit, to obtain the ISI mark from Bureau of India Standards. Packaged Natural Mineral Water governed under IS: 13428 and Packaged Drinking Water governed under. IS: 14543

Is it safe to consume water packaged in plastic bottles?

• The plastic material used to contain naturally sourced bottled waters found on supermarket shelves is made of PET (Polyethylene Terephthalate). PET is the main packaging material used for beverages and is completely safe.

• Single-use plastic water bottles are not designed for re-use. In the interest of hygiene and consumer safety it is not advised to re-use single-use bottles.

• Naturally sourced bottled waters have different concentrations of minerals in them, depending on the geology of the land that they come from, which gives each bottled water its taste.

BASIS AND PRESUMPTIONS This project has been drawn on the basis of following presumptions:-

1. Working hours : 8 per shift2. Number of : 3 shift/day3. Number of : 300 Working days per annum4. Handling loss of Bottles per year : 50005. Working efficiency : 75% 6. Total period for achieving maximum capacity utilisation : Third year from

the date of capacity commencement of production.7. Margin money : 25% of Capital Investment8. Rate of Interest of Capital : 14% per annum9. Constriction cost of building, coast of land, labour charges and cost of

plant machinery and equipment have been considered as per prevailing rates in the market.

10. Cost of installation and electrification of machinery and equipment has been taken at the rate of 10% of the cost of plant and machinery

Procedure of Production

FINANCIAL ASPECTS Total capital investment

Working capital per month

Sr. no. Description Amount (in Rs.)

1. Fixed assets 9892658

2. Working capital (for 3 months) 7303500

Total 171,96,158/-

Sr. no. Description Amount(in Rs.)

1. Raw material 222000

2. Salaries & wages 80000

3. Utilities 105000

4. Other contingent expenses 29,500

Total 24,34,500/-

Financial Aspects

It is further explained into various financial aspects :-

• ..\BBA 5\PFR\Packageddrinkingwaterthrissur.pdf

QUESTIONS

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