Packaged Drinking Water

Production Capacity : 45 lakh bottles of 1L capacity/annum

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, 42.00
skid, electronic doser, ozone generator, water collection tanks, Quality control laboratory, deep bore well, delivery
van, PC
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 45 lakh 7.00 315.00
24 bottles each bottles

Net Profit per year

= Sales – Cost of production
= 315 – 268.30
= Rs. 46.70 lakh

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
------------------
38.43 +46.70

= 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