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Mineral Water Plant Cost

Mineral Water plant Cost

Mineral Water Plant Cost : How can one calculate this 

Mineral Water Plant Cost is unarguably the first consideration which comes to the minds of entrepreneurs , who wish to setup their plants. Though an entrepreneur is driven by the sense of Opportunity in this field, his further decision starts or stops here. 

Is Mineral Water Plant Cost Calculation Important ?

Yes. The First Reason :

Most of the People ask us this question

“What is Mineral Water Plant Cost” still remains the most asked question to us. Almost every businessman, whether he wishes to run a local jar business, or wants to start a Multi state level franchise business; he definitely asks this question. Furthermore, we too, feel that it is the fundamental consideration, even before the profitability.  Mineral Water Plant Business is becoming more and more competitive; hence, knowing & operating on cost measures is one thing where you may outscore others in the business. Making profits is the challenge, and the reason to many closures, is not getting less business, but getting less profits, sometimes negative profits.

Cost Control is the 1st thing, and to control cost, one should be aware of them. 

Reason No.2 :

Knowing our “OK” Investment Zone

The “OK” Investment Zone for every entrepreneur is different. If you are a 1st generation entrepreneur, you may consider to go slow and steady, going from small to middle, and then large. On the contrary, if you belong to an existing business family, you might think of starting big from the beginning. In both of these cases, the Investment is different from each other. Hence the Investment Cap as well. For someone , 5 Crores will look as a massive investment, to other even 50 Lakhs, or the matter of fact, even 5 lakhs also may be challenging for someone. 

But, the business has its attributes. Every business is created for profits. And to let it run in profits, it has some certain costs. Similarly, Mineral Water Business also has some costs with relation to the Business Model you select. This Cost, whether it is comfortable to you or not, will solely depend upon where you come from. And what is your acceptable investment. This is what we mean by the “OK” zone.

Overall, it will be necessary to see whether investing in a Mineral Water Business be worthwhile or not.

Reason No. 3 :

Just Machinery Cost is not the Mineral Water Plant Cost 

We have observed that many times, participants from our Past Training Sessions, got frustrated after a special session we conducted on Comparison of Various Plant Models. In this session, we compared 2000 LPH, 5000 LPH & just the jars Model Head to Head with the complete R.O.I. based calculations. There the less informed entrepreneurs got surprised by the amount of money involved in this business.

We have observed that if you are an entrepreneur, you will first Google on terms like “Mineral Water Plant Cost”. Or you may visit certain sites like the Indiamart or Trade India or Alibaba. These are the Directory Sites for Industries, the aggregation of the businesses in various industries. A data collection of the manufacturers or the suppliers dealing in that. 

At the beginning, an entrepreneur like you contact a few of them and get price quotes from some of those. Typically for Mineral Water Plant, you will see that all of them are Machinery Suppliers. They may claim and they might be supplying all the machinery as well; they don’t give you the actual total project cost. What they give you is the Machinery Cost. Most of them. 

For Example, study the image & table below which tells you what might be missing out from the various quotations you receive from mineral water plant suppliers :-

Mineral Water Plant Quotation by a Supplier
This is NOT the Entire Plant Cost, though mentioned.

Sample 1000 LPH Mineral Water Plant Cost Calculation

Sample 1000 LPH Mineral Water Plant Cost Calculation

Cost Component Head
Cost ComponentComponent Available or MissingAppx. Price (Lakhs)Remarks
MachineryWater Treatment Plant with Added Minerals SectionYes6.50
Q.C. Lab as per the BISYes3.75
Packaging & Bottling MachineryYes21.00
UtilitiesElectrical Transformer, Generator etcMISSINGTBCTo Be Calculated
Cooling Towers, Compressor , Air Conditioners and Other UtilitiesMISSINGTBCTo Be Calculated
Building & ConstructionShed, Fencing, Internal Furniture as per ISIMISSINGTBCTo Be Calculated
Misc. WorkCivil, Plumbing, Internal Electrification, Softwares, Licenses, Manpower etc.MISSINGTBCTo Be Calculated
This costing is taken from a Supplier. It offers comparison factors on what might be missing out in the Quote you receive from supplier(s).

 

Details About Each of the Cost Components 

There are major & minor cost components. Calculation of detailed cost components is the job of a Chartered Accountant. However, we have created a separate page for the major Mineral Water Cost Components.

# There may be addition/deletion in the cost compenents. For example, there would an inclusion of Plastic Recycling Cost in each of the producer’s costing due to EPR

However, we strongly suggest you To Download our App so that, you can :-

  1. You will get notified about our trainings from time to time.
  2. From “Courses” section, you can check them yourself
  3. You can test your knowledge through basic tests created on the “Free Material” Tab
  4. You can also download the PPT of our earlier 4-day Trainings for free

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For iPhone users:

 

 

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Reason No.4 : 

You need to also consider the other costs

The other costs include land and building, other utilities cost, operational cost, cost of capital and other costs. Under the session we mentioned above, we lay down a special focus on this and train you on the aspects of drilling down to your exact initial investment even before you go to your chartered accountant who prepares your project report.

Reason No.5 :

Cost vs Investment

Generally, entrepreneurs ask us questions like “how much mineral water plant cost for 20 Ltr Jar Plant” or “How much Money is required for a 1 Ltr Bottle Plant“. By this means the initial investment required. He doesn’t much bother about other things. And this is okay when your dream is vague and not properly defined. 

(Note :- There is a Special separate article on calculating 20 Ltr Jar Mineral Water Plant Cost)

But, if you wish to go further, you require further information on the exact cost of the whole enterprise. Now, let’s divide this into 2 separate phrases :

  • Mineral Water Plant Cost and
  • Mineral Water Plant Investment.

Mineral Water Plant costs are the various expenses you shall be making from time to time to keep the entreprise running

Mineral Water Plant Investment is the actual Money required to meet the costs from Time to Time.

So, how do I arrive at Mineral Water Plant Investment ?

First of all, please understand, that there is no fixed cost for a Mineral Water Plant. It differs from every entrepreneur.With the selection of his own Product Mix. The Product Mix and daily production you have planned in mind, will give you the various costs involved. 

Once this is done, you can present the statements to the Chartered Accountant, who will prepare the projections and guide you on how much will be your R.O.I. As mentioned, in our Live Training, we do conduct the processes to decide your product mix and also detailed training on considering every cost component. So that, you arrive at your Investment to make the venture profitable.

( Kindly scroll up little to check how to check the upcoming trainings)

Steps to get the exact Mineral Water Plant Cost & Investment :-

  1. Carry on a Local Market Survey (Or International depends upon your vision). Market Survey is a critical thing. You can do it with your own way; or can get it done from Expert Practitioners in the field. It again depends upon what is your lookout.
  2. Decide What you will be producing and How much, this is your product mix.This can be had from the Market Survey. We do conduct a session on this during our Live Training. 
  3. Present the calculation to the machinery vendors, get their quotes. Once your Product Mix is ready, you can reverse calculate the machinery specifications from that. We conduct an activity exercise during our training to do this yourself.
  4. Decide the Shed Size, Outer Area you will require, to get the cost of construction. Once you receive machinery dimensions; you can arrive at floor space (With reference to the B.I.S. norms on this). 
  5. Decide other resources cost such as Electricity, Water and add to the cost.
  6. Total them out, this is your Mineral Water Plant Cost, the initial project cost. 

Note :-

(a)  Actually, the cost should include both :- The Capital Cost (Capex) & Operational Cost (Opex). The above example only tells you Initial Money or Investment required for Starting the Mineral Water Plant.

(b)  In our Live training, we conduct special sessions on all these aspects.

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Categories
New Articles

Review : Food & Drink Processing Expo 2025 at Coimbatore

Overall for Water Business

There was an exhibition at Coimbatore, organised by Synergy Exposures & Events. The dates were 2nd to 4th July 2025. There were 5 Halls in all. However, Hall D was the hall about machinery & which happened to be the important of all of these. As far as the Bottled Water is concerned, I did not find much more stalls, however, here’s a list of what I could find of note :-

  • The organisation of the event was satisafcatory
  • There were many stalls from the Batch Coding Suppliers :- I found out CIJ, TIJ & Lasor Printers’ stalls.
  • Bottling Machinery : There was just 1 stall from Filling-Capping, Labelling Machinery Supplier; 1 from Sticker Labelling Manufacturer, who happens to be a local guy. Besides this, no machinery fellow at all.
  • Others : There were PET Preforms suppliers, both local. But no PET Bottle Manufacturer. There was a Hot Melt Adhesives supplier. 1-2 Shrink Sleeves suppliers, but they were mainly offering the Digital Prints , which is not feasible for larger quantities.

Fssai Workshop Review

In addition to the exhibition, I was also very much keen to attend the workshop conducted on Fssai, organized by FICSI. Some major important learnings from the same are here :-

  • Fssai Number should be printed on every Invoice.
  • Primary Packaging Materials :- This is the packaging that directly contains the product. It’s what the consumer sees and opens first. In our case, the PET Preforms, from which the Bottles are blown.The Bottle Caps & Labels as well. All these form Primary Packaging. Even Printing Ink through which the Labels are printed, should be of Food Grade in addition to the Material of labels. This may also include the Batch Printing Ink, Solvents etc.
  • Secondary Packaging Materials :- This packaging groups together multiple primary packages. It provides additional protection and is often used for branding, display, and easier handling in retail. In our case, it can be the Corrugated Boxes, or the shrink film for 12/24/48 bottles packing.
  • Tertiary Packaging :- I could not make out what can this be for Bottled Water.
  • All Materials should be Food Grade. Suppliers should produce certificates for these.
  • Labels have to bear a particular format. So, before approving the graphic design, do not leave it entirely to the designer, check yourself whether it meets the printing norms.
  • Labels should not be removable from Bottles. There will be a little confusion as many Water Bottles have Shrink Sleeves, Many have BOPP which has glue just at 1 line. If this rule is applied, then water bottles can go only with Sticker Labels.

Besides these, the trainer Ms Shyla Ravi spoke on many points. The training was truly fantastic.

Next Exhibition/s

Next Synergy Exhibition will be in January 2026, at Bangalore. Kindly contact organizers.

Categories
Mineral Water Co-Packing

Co-Packing : Low Investment Water Business

Have You heard of Co-Packing ?

Co-Packing is a term which is popularly used in the Packaged Drinking Water Industry in India. It simply means that you just own your brand & get water packed from someone else who has the BIS License.

Some Major Questions

Perfectly Legal, if you observe the basic required formalities

What are the formalities ?

You have to follow procedure & get the following documents :-

  • The Udyam Registration
  • Trademark
  • fssai Registration / License as per requirement
  • Tri-Party Agreement ( You, Packer, BIS )

How Much Time needed ?

If you have a BIS Licensed packer, it can be done very fast, in a month also, provided you hence all the resources like investment ( 5-15 Lakh ), place (500-1000 Sft ) etc.

What is the starting point ?

If you are sure you wish to start, contact us for consultancy or if you are still not sure, you can attend one of our training sessions or See this Video Playlist You can simply send a Whatsapp Message at 9822478111 to get further information.

Categories
Uncategorized

Bottled Water & Plastic Ban : An update (Sept 2020)

Bottled Water & Plastic Ban

Bottled Water Industry uses Plastic heavily. In a bottle of water it’s 100% Plastic, besides water. Last year, since the 15th August 2019, the industries concerned with the single use plastic (PET bottle is also a single-usage plastic), came into danger of existence.

Govt has created certain Policies

As there is no practical replacement still, for the PET bottle, it doesn’t mean that bottled water people can freely continue making PET bottles. There are certain rules formed by the Govt of India, they are called as PWM Rules : Plastic Waste Management Rules-2016, every term they are revised & redesigned if needed. By the virtue of it, every Polluter (the Bottled water producer or plastic prodicer) has to observe an EPR. Extended Producer’s Responsibility. You may read the following post already created for explaining the whole subject.

An update …

NGT, National Green Tribunal has ordered all the major “Polluters” to implement the EPR firmly. It includes all biggies such as Bisleri, Coca Cola, Himalayan, Patanjali etc. NGT has ordered the CPCB : Central Pollution Control Board to reinforce the EPR Audits with these companies.

Read the Original News Here
Read the Order
Categories
Plastic Ban

Plastic Ban & Mineral Water Industry in India

Background

First, on the independence day, 15th August 2019 followed by second speech by P.M. Narendra Modiji declared intentions of getting out the Single-Use Plastic from India by 2022 in a phased manner. It included the PET bottles too, which are used by almost 100% of the Mineral Water producer industry. The reaction came as a shock to many whose stakes are involved in this huge business, whereas, general public voted in favour of it.

The Truth

We really ( and no-one can) can’t deny certain facts about plastics (which consists PET as well) that …

  • Plastics (some of them can’t. PET luckily can be) can be recycled just 3-4 times, once its over then what ?
  • Littering of Plastics makes land infertile, chokes drains,ingestion by cattle, fishes and the whole aquatic chain. This goes into our food too.
  • Dumping leads to infertility of Soil, contaminated groundwater due to leachate. This too goes inside us.
  • So whatever is there on earth, is still unresolved, but it’s our responsibility to save the system.
  • It’s not the question of 1 life, but several next generations, to them, what shall we pass on….

The Challenge

Here, everyone concerned is going through a challenge. Everyone in this eco-system. The producer, suppliers,distributors, the law-makers, one & all will face certain challenges. We shall later discuss these in relation to the subject, before that, let’s see what the Govt of India has done about it

“Thinking is easy, Acting is Difficult. And, to put One’s thoughts into action; is the most difficult thing in the world”

(From Brainyquote)

Govt has come out with latest Plastic Waste Management Rules 2016

They came out with fresh rules which actually superseded the earlier 2011 rules & has created new set of rules for overall Plastic Waste Management (PWM) as it’s called popularly. We shall highlight certain points here, which apply to Mineral Water Industry :-

  1. Every producer and brand owner will have a special policy document & procedure laid down for EPR ( Extended Producer’s Responsibility), meaning it is his/her responsibility to manage the product till the end of its life for sound environment.
  2. Plastic Waste (the littered bottles) shall be channelized through registerd waste recyclers, and recycling should confirm to IS 14534 :1998.
  3. The authority for this will be your SPCB, State Pollution Control Board, through which you should apply for registration immediately. They may ask you to renew the consent subject to the EPR registration.
  4. Every year, they give you a target for recycling. Like 20 %, 100 % etc. This is related to their overall targets achieved for recycling.
  5. It simply means that if you consumed 100 tonnes per quarter, you should submit a report through an authorised recycler that the given % was recycled.

There are still a lot of grey areas

As the whole thing is still under formation stage, there are many grey areas. However, in upcoming 3-4 years, it will be quite clear & perfectly in implementation stage. You may consider this as a Bonus till then.

The Effects

However, the effects have started already. As the PWM rules implementation targets are given to all the local bodies, they have established mechanisms to do that and public awareness is growing visibly.

Consequence : PET Bottle demands have dropped

As we were speaking to a producer a month back, he told that the demand for bottles has drastically reduced from corporates. Though the demand for 20 Ltr jars has increased a bit.This is mainly due to the public awareness.

The sufferers

There will be many stake holders involved whose cash flow & overall business will face some medium to serious threat due to this reduced demand. However, the majority ones are the Plant Owners. Besides the reduced sale, they also face additional new expenditure on account of the EPR thing, which will directly show as an input to their variable purchase cost (purchasing the used bottles). In addition, there also will be the liaison expenditure & the consultation fees to be payable to the consultants who deal in this EPR thing.They need to make some alternate arrangement during this period allotted to them. Huge investments might be locked in, which will be in threat now as Bottled Water is a huge industry in India. Besides these, there are also others affected :

  • The Blowing Machinery Manufacturers
  • PET Bottle makers/Suppliers
  • PET Preform makers/suppliers
  • Label Suppliers
  • Labeling Machinery Suppliers
  • Specialty Human resource such as blowing machine technicians

The Opportunity

An entrepreneurs is the one who seeks an opportunity arisen on account of this new development. Let us sum up where are these opportunities :-

  • Alternate Packaging Materials (e.g. Glass)
  • Water ATMs
  • Waste Collection Apps & systems
  • Waste Recycling Plants like waste to energy
  • Environmental consultants to form EPR’s for producers

Some Consolation ..

However, though the situation sounds alarming, there are some good points

  1. Out of the total plastic waste generated, PET contributes to just 8%
  2. Though Plastic is recycled for 3-4 times; if it is used for Road Construction, it stays there for many many years without much damage to the eco system
  3. If used as a fuel, again its life cycle is increased.
  4. Compared to the world, India produces very less (one of the least) Plastic Waste per capita. USA tops the list.

What do you think ?

We shall always welcome comments & suggestions from you on this issue !

Categories
Uncategorized

Alternatives to Plastic Water Bottles

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

Winston S. Churchill

PET Bottles facing threat in India

On 15th August, Narendra Modi, the Prime Minister of India, declared his ambitious plan of phasing out the usage of Single Time Used Plastic by 2022. It is the plastic which can be used just once before can be thrown away or recycling. From 2nd October, the plan would start getting implemented, which is delayed due to “No Alternative Solution” still, mainly in view of What would happen to the 5 million (50 Lakh) workers working in this industry, and viewing the current overall industry slow-down.

It might be a temporary relief

Everyone knows that this can be just a temporary relief, as Mr. Modi has an image of the kind of person who implements things. Through decisions like Demonitization, the RERA, and implementation of GST, everyone knows for sure that he is not going to revert back.

It is a welcome decision

Am I sounding strange ? No way. I am aware, what you must be facing if you are one of those 6000 + Packaged Drinking Water Plant owners in India. You are seeing this news as a pure threat. And yes, it is a threat. Threat to your business and to the environment, existence as well

Know how this plastic may be harmful …

  • It was observed that the plastic chokes the drains & water bodies, during the floods
  • It releases toxins, and thereby makes land infertile, then it is consumed by cattle, humans.
  • Same effects are also seen in groundwater which gets highly contaminated.
  • When openly burnt, it releases carcinogenic & harmone disrupting chemicals like dioxin.
  • It disturbs the food and aquatic chain through agriculture soils. All/Any Plastic waste management process results in release of toxic metals such as lead & mercury, organic substances, acid gases and other toxic substances to the water, air and soils.
  • The contaminated air, poses huge problems to the workers who work in this industry, and other citizens as well.

Feel Good, India has taken a lead role !

To beat any challenge , one can only come up with alternatives with a positive, assertive, optimistic approach. It calls for a “Feel Good” factor. A bigger picture. Feel good, feel proud that you, how small or large though one of those 6000 + business owners, are still contributing to the mother earth. And be thankful, that you are in a country which is taking a lead role in the Earth’s issues !

Why this can be a great opportunity …

Having made a concrete decision to come out with environment freindly options to Plastic Water Bottles, now let’s talk about alternatives. Here, we shall talk about alternate, and innovative Bottled Water Business Models, which might come out of this challenge. Because your business is Water, not the plastic bottle, in principle.

You can become a trend setter-pioneer !

When BISLERI arrived into the Indian market, Bottled water was a great, luxury,premium thing. But now ? It’s such a prominent brand that even pure water is called as “bisleri water“. The situation is similar today, rather, little better. People need not be convinced about the Pure Water importance. And still you can come out with something new to set a trend.

Local Entrepreneurs .. great time for you !

Currently, this business is a Distributor dominated business. The producer sells bottles to the distributor (Rs.6-8 per bottle), distributor to his sub-sub distributors & ultimately you and me pay Rs. 20/- per bottle. So, there is a huge cost we pay for distribution. It’s more than Double.

Again, it’s interesting to know how much is the cost of water inside the bottle. The producer (with his profit) sells the bottle at Rs. 7 (average). The average per bottle cost is Rs. 3.7 to 4.10. In this, water cost is not even 25 paise per litre.

Effectively the consumer ends up Rs.20 per litre, which costs Rs.0.25 (25 paise)

Once plastic bottles are banned, this business is set to open to creative entrepreneurs, who come out with solutions by which they can offer GOOD WATER, to people. This is the time to get out of the clutches of the established pattern of business, and demands Business Model Innovation.

It’s not as difficult as it seems like

How many years have passed since the Bottled Water has become a trend in India ? Hardly 10-20 years. Agreed, bottled water, started with PET only; still there can be many ways. Some of them are like below :-

  • Using Glass Bottles in place of PET. You can listen to some ideas at this Podcast
  • Establishment of a Water Vending Machine Business (Water ATM)
  • Establishing a Brand, getting bottles packed from the local Water Plants.
  • Establishing a Domestic RO Business (as people will carry their own bottles)
  • Establishing a Pure Water Kiosk where all water specific products can be sold like Water ATMs, Domestic RO’s, Filters, Steel Bottles, Glass Bottles, Copper Bottles, Ceramic Bottles etc.
  • Introducing Herbal Water, Vitamin Water Business, like Repacked Water.

Understand that your business is WATER,not just BOTTLED Water. Hence the market is still present. You just need to take a turn & think little differently.

Attend Training to get ideas ..

Attend our Live Training where we shall be sharing & talking about this in details. You may get some excellent clues on how you can encash this newly arrived opportunity.