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INVESTING IN BOTTLED TABLE WATER PRODUCTION BUSINESS

05 Feb 2013

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Public Water Facility

By Uba Godwin

The role of small and medium scale industries in employment generation, skill acquisition, output growth, enhancement of local technology, mitigation of rural urban drift and enhancement of export base, cannot be over emphasised.
The experience of developed and industrial nations such as Japan, United States, Britain, Canada, China, India, South Korea, Singapore, Taiwan etc speak for itself.

It should be realised that the sector potentiality has aroused the interest of UN agencies such as ILO, UNDP, UNIDO etc to sponsor export studies in Africa generally and Nigeria in particular.  Each of those reports strongly recommended the development of cottage, small and medium scale industries as a pre requisite for meaningful national development.

When one looks at many packaged water brands in the market and companies behind them one would conclude that the business is saturated. One would also conclude that the business does not generate much income or profits.
From the research conducted by the writer and other teams of the consulting group, you are authoritatively informed that this business is still very lucrative. In fact more and more serious rich investors are still needed. The successfulness in this business today depends wholly on how professional the project is packaged and managed.

Many people who can not apply the required professionalism required have dropped along the line giving way to those who have the required capital backed up with professionalism. The project is no longer a child’s play.

The product is so diverse that no amount of capital is considered too small or too big for the project. If you have so much money, you will also have more sophisticated areas to innovate and become the leader if you can. If you are not rich, you still have to remain in your ordinary sachet water packaging. The demand for pure water has grown very high. It is now a household consumable product.

Therefore if you want to invest in this area do not be discouraged but be professional. The writer will guide prospective investors in setting up this project from feasibility studies, site planning, procurement and installation of machines, development of marketing strategies and recruitment of experienced manpower to manage the project for profit.

The need for good quality drinking water packaged under very stringent hygienic condition cannot be over emphasised. When one considers the costly effect of water borne diseases like craw-craw, worm infections, water blindness, dysentery, diarrhea, typhoid fever, cholera to mention but few, it becomes paramount to go for clean (pure) water.

Without adequate clean water one suffers dehydration and eventual death. Water provides the medium in which all biochemical reactions take place. Water also plays a major role in the “evolution of biological systems”.
Almost 80 per cent of all hospitals in Nigeria today lack good potable water; hence the need to remove the entire undesirable elements and pathogens it may contain through treatment.

Pure portable water is very essential for healthy living. It has no substitute.
From the above, investment into innovative purification and packaging of colourless, odourless and tasteless, drinking water seems a very lucrative business. Already there is rampant and most popular way of packaging water in cellophane sachets usually called pure water” and sold for N5.00.

Though this aspect of packaging water is simpler, cheaper and enhances easy entry and exit, higher turnover because of the cheapness of the products, it has been observed that this has been abused by a lot of people. A more organised means of production of pure water has been found to be gradually taking over: sachet” type of packaging.

Apart from the fact that there is an existing markets for the bottled water, a well purified and packaged, water are exportable to Europe Far-East some African countries and America. Details of the companies, countries, prices and standard required will be given to prospective investors on request.

Presently a plastic bottling can for pure water production is taking over. This is found to be more lucrative too. This is because not every type of investors can invest on it like ordinary nylon/cellophane packaging of water. All attention is shifting to the plastic bottled water.
The plant can be set up at any part of the country. The plant consists of water treatment plant made up of seal sedimentation, tank, filters, suction pump, alpha chambers, pressure gauge and stainless tank and tama flow 700 an industrial purification system.

This machine incorporates from consecutive operations-pre-filters, activated carbon, polisher and ultra violet steriliser. It also has v/v designed for 30-3 L/min maximum flow rate, 60 PSIG Max pressure, 220 V/50 Hz voltage, 254-barometer wavelength lamp and 99 per cent bacteria elimination rate.

The plant can produce 30 litters of well-purified water per minute. This implies that it can purify about 14,400 litters of water per shift of 8 hours.

The writer will educate prospective investors more on contacting him for procurement and installation. There must be water purity testing machine to make sure that the water is germ free. Finally corking machine is needed.

The raw materials for this project are water, plastic cans and water treatment chemicals such as Ozone, etc. All these are locally available in Nigeria plastic making companies. The chemicals are all available in Nigeria. The water could be obtained regularly either from borehole or natural spring water.

Production techniques are very easy. It involves rust removal, filtration to produce clear, colourless, tasteless drinking water. The chemicals are added to clear any bacteria and germ free from the water. The water is then filled in the bottle, corked and ready for sale.

Study carried out indicated that prospective investor must have a decent building walled and painted with very clean environment, if he must obtain the NAFDAC approval to be business.

From study also carried out the project can be started with the sum of 9.4 million (the cost breakdown is shown below) is required to set up sachet water producing and N26.2 million for automated bottling/sacheting plant.

The project gross profit margin for the project is worked out as N29.7 million in the first year and N14.27 million in the fifth year. Projected operating costs for the first year is N1.140 million and N1.519 million in the 5th year.

When the operating costs are deducted the investor would be recording N6.096 million in the first year and N9.030 million in the fifth year.

It is very lucrative business. The writer can assist prospective investors to conduct comprehensive and bankable feasibility studies, assist in sourcing the required funds and procurement and installation of a well tested, NAFDAC approval plants and machinery.

Financial Projection

Pure water sachets(N’000)

Bottled table water (N’000)

Preliminary Expenses

   250

     500

Plant & Machinery

2,500

12,000

Accommodation(varies)

   550

  2,550

Motor Vehicle

3,000

  5,500

Capital Utilities

   350

  1,200

Operational Expenses

2,500

  4,100

Contingencies

   250

     550

Total

9,400

26, 400

The new dimension of water bottling, with 20-liter dispenser and bottle racks is also very lucrative and can be incorporated into this project plan. For further enquires contact

* Godwin wrote in from Surulere, Lagos 

E-mail: ubagodwin@yahoo.com

Tags: BOTTLED TABLE WATER PRODUCTION BUSINESS, Business, Featured, Nigeria

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