Plant Cost

Whenever you’re taking a Decision to establish a Mineral Water Plant, obliviously few questions will come to your mind like :

 

1. What is the Profit Margin?

2. How much is the investment?

3. How much is the ROI (Return on Investment)?

4. What are the Risk Factors?

5. How to minimize the Risk Factors?

 Now I will attempt to answer this questions as follows.

1. What is the Profit Margin ?

There is a separate page on this site called “plant layout.”You can get a table below the Layout which explains the cost of production & profit margin.

2. How much is the investment?

The investment truly depends upon the type of plant & the Capacity of plant Let me explain this in details.

• Type of Plant :

Some people may look at a prosperous Jar Market, at the same time some other may feel that they should go for bottles, jars & Pouches. Some of you may feel that they will start with just bottle filling. Empty Bottles bought out where as some will want to have complete bottle making Set as well.

So the decision of “ Which type of Plant” Truly depends upon your targeted Market segments. Once you decide what to have in your product mix, you can decide the machinery and other things. Read this article to get an idea of how to decide the plant Capacity.

Now to arrive at the Mineral Water Plant Cost, These are the elements which are combined each other.

Machinery & Equipment

All machines like Water Treatment, Bottling, Lab equipment etc. will come under this.

• Utilities : Water Electricity Air Conditioning, air Compressor etc.

• Liaison Expenses : ISI License & other Government License expenditure.

• Consultancy Charges : Like ISI Consultancy project funding etc.

• Building Cost : Construction, interior cost

3. How much is the ROI (Return on Investment)?

Usually , if the business is run professionally , the invested money will be returned to the investor by the business in 3.5 years. So you can say that ROI is 30 % per annum.

4. What are the Risk Factors ?

After working closely in this industry, I have observed that the TOP risk factor in this business is Improfessional Management of the business. I will highlight main elements in this :-

(a) Execution Failure :-

Such a plant calls for detailed steps to get executed in time, with detailed clear-cut duties explained. If not, there is a mess of things & plant fails to get executed in time, in turn you will be left with LOSSES.

(b) No Proper Co-ordination :-

After you finalize the plant supplier, failing to do a proper co-ordination with him is the major reason. Non-appointment of a Project Guy OR not maintaining schedules will result in delay in execution

(c) No Documentation :-

People go by intuition, without doing proper study on what they have to sell, what market they have, how are they going about it etc. And they do not keep any documentation about this. Then misunderstandings, and all……

(d) Absence of Parallel execution system :-

It means , at a time you will need to carry out various cycles, absence of this will again increase project period.

Inside our Training Course , we offer a Project Planning Ebook which clarifies you these concepts

(e) Habit of doing everything on your own :-

Keep in mind, you are a businessman, and a businessman delegates, does not do everything. As an entrepreneur, your job is to get people, tools. And giving the tools to the best people who are going to do that. Watch this interview with Richard Branson, who owns over 300 companies now.

5. How to minimize the Risk Factors ?

I know, 100 % risks can’t be avoided, but can be reduced to a great extent, no doubts. Here is how you can do it :-

Pakaged Drinking Water Plant Training Course

a. Invest in EDUCATION. Just keep eyes around you, there are many people conducting courses in Packaged Drinking Water Business from time to time. Keep an eye on that. Even we also do have a Training Course on Packaged Drinking Water . The course is fully online, has a great content. The best part is:- It’s delivered through mail, so you can learn at your own pace. Check the contents here.

b. Do a proper project execution plan- step by step. Prepare an excel sheet, note down all duties, steps etc, who to do what, what date etc. If you do not want to spend time and need readymade steps for a packaged drinking water plant, we also have an execution plan software, it is included in the course above mentioned. But you can see a video demo of the course over here.

c. Read this article on what 5 steps you can take to avoid the risks involved in a packaged drinking water plant .

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Conclusion :

It is advisable to properly study the market, then appoint best possible turn key project consultant.

233 Comments
  1. Mahesh says:
    Posted September 17, 2014 at 4:49 pm | Permalink

    Hi this is mahesh from Kollegal, Chamarajanagar Dist, Karnataka.
    I had my own land with good water facility, so planning to setup 1000Lph Packed Mineral water plant, if i start how about the marketing.
    Is there any facility to tie-up with any other companys for selling our products, like we will put there lable in our products, can you pls tell me the entire plant cost with that marketing Ideas…
    Thanks & Regards
    Mahesh M

    waterman Reply:

    Hi Mahesh.

    Thanks for writing in details about your concern. The Plant 1000 LPH , is comparatively a smaller plant. You can surely tie up with other guys. Keep on watching our site for such opportunities, particularly the comments section.

  2. RAJARAM says:
    Posted September 14, 2014 at 8:01 pm | Permalink

    WE WANTED TO START A MINERAL WATER PLANT NEAR SEA COAST. WHETHER IT IS POSSIBLE.

    waterman Reply:

    You can avail our special consultancy to see that.

    In pre plant feasibility report, we shall depute someone to your site , he will do the site survey, discuss with you regarding your ideas, and then on the basis of that shall suggest you a viable plant size & machinery. Also a probable layout will be supplied.
    This work will be done in 1 single day. The report will be supplied within 3-4 days from the visit day.

    Charges will be Rs. 25,000/- + to-fro air fare (pune-your place), lodging & boarding & local conveyence extra.All money need to be paid in advance.

    Next will be vendoring consultancy : This depends upon the Plant size.

    Please suggest if interested.

    Regards

  3. Prashant kumar nag says:
    Posted September 11, 2014 at 7:36 pm | Permalink

    am planning to 100ltr start minaral water bottle plant in U.p. in Barabanki Dist. I need know what equipments required and cost of the eqipmnets …etc.

    waterman Reply:

    Dear Prashant,

    100 Ltr is too small, it can’t be called as a Mineral Water Plant. In fact , it can be a domestic RO.

    Do you mean to say 1000 Ltrs ?

  4. Siddu says:
    Posted September 10, 2014 at 11:12 am | Permalink

    I am willing to open a RO plant as soon as possible. kindly help me by providing necessary details of complete process, machines and total investment cost.

    waterman Reply:

    Dear Siddu,

    Very many thanks for writting to us. Complete Process & Machinery can be seen on this article General Idea about the investment is already given on this page

    If you have specific requirements, two ways to get help :-

    1. Getting a training course to learn by yourself.
    2. Getting Consultancy for specialized requirement, write back through Contact Us Page

  5. sachin says:
    Posted September 5, 2014 at 8:38 pm | Permalink

    sir…..
    how much cost of a water plant


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