How to Set Up a Packaged Drinking Water Plant

Tanya Verma

05 Oct, 2019

Packaged drinking water plant business is an extremely profitable business idea, which you can start with low investment. As per the Industry Analysts, after all the production, advertising and packaging charges have taken into account, the profit margin for small-scaled drinking water packaging plants is a whopping 35%.

Furthermore, this blog will provide you a detailed guide on how to start a packaged drinking water plant in India. Also, you would get to know how you can succeed despite the huge competition in this sector.

Current and Future Overview of Packaged Drinking Water Plant Industry

According to the latest study by Industry Analysts, the market size of the water treatment technology sector is estimated to be at $ 145, 082 million. Furthermore, this number is likely to rise and reach $ 192, 715 million by 2022. Also, it is estimated to expand at a Compound Annual Growth {CAGR} of 4.1% over the forecast period.

Packaged Drinking Water Plant and its Scope in India

A mineral water plant is a unit that ensures the quality of drinking water and supplies it to the consumers. Primarily, a mineral water plant is involved in purifying raw water, bottling them up, labeling them and selling them in the market.

If we talk about the scope of a mineral water plant in India, it has experienced a 30 to 40% hike in the revenue in the last few years and it is expected to increase in the future.  The water plant industry^[1] is one of the fastest-growing industries in India and it’s cost in 2018 was around Rs. 162 billion.

Licenses and Registrations Required to Start a Packaged Drinking Water Plant

• Registration of Firm: The first step to start any type of industry is incorporating your own firm. Moreover, it is always beneficial to incorporate a One Person Company at the initial stage of your business
• GST Registration: It is mandatory to obtain GST Registration if your turnover is above the specified limit
• Bureau of Indian Standards – BIS Certification: You would also need to take the BIS Certification. The specified standard for mineral water is IS 13428: 1998
• Trade License: You need to take the Trade license from your local state authority
• FSSAI License: Mineral water is a category of the item under the food industry. Therefore, you need to take the FSSAI license to be able to work with mineral water. Also, you need to comply with the provisions of the Food Prevention Act
• Import Export Code: You got to obtain the Import Export Code if you are planning to export the mineral water bottles
• Pollution Certificate: You also need to obtain a Pollution Certificate to start your Mineral water plant
• SSI/ MSME Registration: It would be beneficial to obtain the MSME/ SSI Registration as you become eligible to qualify for various schemes provided by the government.

Water Purification Process

Guidelines to Start a Mineral Water Plant

Starting a Packaged Drinking Water Plant is no doubt an appreciable option, but you need to know how to get the most out of it. For that, you need to know how to start and proceed with your plan. A water processing plant demands a considerable amount of investment and effort to generate the desirable Return on Investment {ROI}. Apart from this, you require certain licenses and permits to carry on your business. Therefore, we present you the guidelines/ procedure to start your water processing business:

• Obtain all the permits and licenses

First, obtain all the necessary documents and apply for the registrations and licenses you would require. It is the most notable aspect of starting any business, this proves that your company complies with all the prescribed regulations. Also, it ensures that you wouldn’t face any legal complications at any point in time. Moreover, acquiring licenses also benefits a firm in attracting customers as it seems more reliable/trustable with licenses.

• Form an entity

To start any kind of business, the first step is to decide what kind of business entity you wish to run. You can choose from the options provided below

• Private limited company
  • Public
  • Limited liability partnership {LLP}
  • Partnership firm
  • One Person Company
  • Sole proprietorship, etc.
• Finalize the area of land required for setting up the water plant

Selecting a suitable location for your business is another crucial step for setting up your water treatment business. Furthermore, the area should be divided for production as well as the office area. Additionally, these points should be kept in mind while selecting a location for setting up your mineral water plant;

• It should be nearby the market area
  • Water should be readily available at your location
  • Ensure regular power supply in that area
  • Lastly, the location should be located at a place with road accessibility
• Get all the equipments and machineries

Evidently, adequate machines and tools are a must to perform any function or work of your business. Business owners who have enough budgets can easily buy bigger machines, with latest technology. However, small business owners have to take required machineries on lease. Given below are some of the machineries you would require to set up your water plant;

• Water treatment filters and machines
• Generator set
• Water sterilizer
• Water dispensing and filling machines
• Storage tanks
• Treatment tanks
• Chlorination tanks
• Reverse Osmosis {RO} Plant
• Sand filter, activated carbon filter and micron filter
• Sealers and conveyer
• Bottle loaders
• Bottles
• Trucks or any other means of transportation for distribution
• Any other relevant machine
• Find relevant bottle suppliers

The Final Stage is selling your packed mineral water bottles. Furthermore, you can also choose to sell your product from the different market options. You can choose to sell your product in the local market, directly to the consumer, in bulk or export it. 

Conclusion

You must be knowing that the Packaged Drinking Water Plant is not a new business. Therefore, you have to employ a unique marketing strategy for your business to make it successful. For example, you can use biodegradable water bottles or consumable bottles, which does not increase waste, etc.