Feasibility study on pure water business

Feasibility study pure water business :  This article describes the investment cost and benefits for setting up a pure water production plant in Nigeria.

The proposed plant can be established anywhere in the nation.

As its end product is consumed widely and generally in Nigeria.

There is no specific time required for the entry time in this sector.

As the need is increasing step by step due to the increase in populace and industrialization.

Investment can be made at whatever time during the year.

However abject time happens especially during the raining season.

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The Industry

Despite bottomless water resources everywhere in the nation.

Nigeria is faced with problems of acute water shortage with its attendant consequences on human and economic life of the nation.

Truth be told, in its report, Water Sanitation and Hygiene (WASH).

A media network concerned with sanitation and water, has said that 63.6 million people have no access to potable water.

Albeit real figures puts the need to 100 million people.

In spite of the yearly budget of around 50Billion Naira.

And a hearty Government plan on MDG targeted to supply 75 per cent of the populace with safe drinking water, much success has not been recorded up until now.

Studies have demonstrated that with the current pressure of quick populace growth coupled with poor management, the available resources of water are being depleted at a quick rate, a circumstance which gave rise to investors bridging the crevice in both bottled and pure water production in Nigeria.

Pure water belongs to the lower consumption in the beverage and water sector.

However it represents around 70% of aggregate packaged water sold in Nigeria.

Presently there are no national brand leadership in the sector unlike the bottle water sector which produces clear leaders in EVA water and Purelife water.

Leadership in the sector is restricted to the territory where it is produced.

Basic Success figures.

Effective systems to keep the product fresh and free of contamination and bacteria.

Effective and cost to keeping raw materials within economic limits to remain competitive.

Energy consumption can be high. keeping it within acceptable limits is basic.

Effective maintenance schedule is basic to success, to keep away from production stoppages.

Close co-ordination with the sales department to ensure that the plant produces what the market would purchase.

Great product name and branding is basic to market success.

Intelligent systems for procurement, production planning, inventory control, quality assurance and dissemination system.

Production Plan

The proposed plant will run 2 lines of pure production starting on 70% installed limit per day of 8 hours and 285 days in a year. The production will equate to around 1,200 packs day by day or 342,000 sacks (20 pure per pack) every year. Production will increase yearly until reaching full plant limit.

Raw materials Requirement

Raw materials usage for this plant are commonly Nylons for pure and for bagging. These are sufficiently available and supplied in the Country.

Technical Overview

The plant will use standard filtration treatment to teat its water. Adequate examination would have to be made of the raw water to determine the level of treatment and chemicals needed for its treatment.

Expansion of line to include bottling plant is possible where adequate space has been laid and a more treatment machinery are added especially the reverse Osmosis. A standard Living home house with adequate space for production floor is required. Other considerations would include, raw material store, finished goods store, shroud room, research center room and office space.

Machinery and equipment requirement

Treatment Plant

Ozonator

Industrial Micron Filters

Industrial Ultra violet Light

Pumps, accessories, Plumbing and interconnecting pipes and treatment fittings

Storage Tanks

Plastic Pallets

Treatment chemicals

Water examination

Pure filling and sealing machines

OTHER EQUIPMENT

25 — 30Kva Generator Set (Basic or Sound Proof)

Office and Factory Furniture

Safety and Protective Gears

Delivery/Marketing Van + Branding

Fire Fighting Equipment

Medical aid Box

Requirement:

To begin pure or bottled water production business , below are the requirements you should meet.

Register your business with the corporate issues commission.

HOUSING REQUIREMENTS

NEED TO HAVE A PRODUCTION SITE

Sections for the production of pure or bottled water:

This is where you will carry out all production activities and your site must have the following sections.

Production Room: A room where the genuine production of pure and bottled water activities takes place.

Storage Room: This is the room where finished goods are stored before dispersion.

Raw materials Room: In the raw materials room, there you keep production raw materials e.g pure water nylon, empty plastic bottles and water filtration chemicals etc.

Changing Room: This is the changing room where your staff will keep their personal belongings and likewise where they can change their clothes.

Office: This is where you and the administrative staff will remain to keep records and likewise to attend to customers.

Toilets and washroom: This is specifically very important, it is an unquestionable requirement to have in your manufacturing plant for hygiene purpose.

Without providing toilets in your site for staff NAFDAC won’t give you the approval to operate a bottled water production business in Nigeria.

Read and discover requirement for getting endorsement NAFDAC for pure water and bottled water production business in Nigeria.

Feasibility study on pure water business

FINANCE

The Production plant including treatment plants and accessories will cost around 2.5Million naira excluding generator and engine vehicle for conveyance. Working capital requirement are expected to be budgeted for no less than 1 month of production including emoluments and energy. Add up to setup cost excluding industrial facility and working on economy plants and machineries including working capital, generator and appropriation vehicle which costs between 5 million Naira and 7 million Naira.

PROFITABILITY

The primary year turnover projection is arrived at N19M with a gross margin of around 10.5Million Naira and a net before tax profit of around 6.5 M Naira. Note however that all projections are based on a 2 line production facilities. Increasing the production lines would generate more profit.

Feasibility study on pure water business

THE PRODUCTION PROCESS

Pure and bottle water is consumed on consistent schedule by one and all irrespective of age, social class or religion. The raw material needed for the production of pure water, of course,  will be water while the rest of the components of production like capital, land, work likewise comes to play.

In the production of pure water {pure water}, the two most important equipment required for production is the water treatment plant and the pure water filling machine.

A rundown of Some machines required for the production of pure water as well as their uses is provided below.

Section One: Pure Water Treatment System

This system is comprised of; activated carbon filter tank, sand filter tank, softer/particle exchange tank and additionally the reverse osmosis system. For control, it uses PLC system to screen the operation of the entire system.

Feasibility study on pure water business

Section Two: Washing, Capping, Filling Machine (3-in-1)

This machine can naturally wash, fill and top plastic and glass bottles.

Section Three: Cap Elevator.

This machine is not necessary but rather it is convenient and it improves the hygienic operation of the line.

Section Four: Light Checker

After the bottles have been filled it is necessary to check that the finished products meet the set and acceptable standard. And that is exactly what this machine is designed to do.

Feasibility study on pure water business

Section Five: Auto Cap Code Printer

This machine is used to print codes on the tops. The date of production and the clump number can be printed with this machine.

Section Six: Cap Sterilizer

As bottled pure water is an icy process production, it is necessary to sterilize the tops before loading them on the washing, filling and capping machine.

Section Seven: Conveyor

To facilitate the production process the bottles have to be moved starting with one unit then onto the next.

Feasibility study on pure water business

Section Eight: Steam operated Shrinking Tunnel (Labeling machine)

This machine shrinks the producer’s label on the bottled water. Please note that you will need a steam generator with this machine.

Section Nine: Wrapping/Shrinking Machine

This is a packaging machine. I will advise you to purchase the manual type as it is significantly cheaper than the semi-programmed one.

The return on this project is quite attractive and impressive that it would be troublesome for any financial institution especially one who manages an account with discerning credit officers to turn down any advance request for funding this project. Promoters of this venture will likewise feel comfortable to release their well deserved money to finance this project.

The successful implementation of this project begins with the preparation of detailed and bankable feasibility study report to ascertain the real cost/benefit status of the project. As a piece of the legal requirements, the promoter needs to register its product with NAFDAC.