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Articles Mineral Water Business

Loan for Mineral Water Plant

If you are looking for Loan for Mineral Water Plant …

First, Correct your vocabulary

Why am I saying this ? It’s because generally you may say “Mineral Water Plant“, however, technically you should really mean that. There are 2 technical terms for this …

  • Packaged Natural Mineral Water and
  • Packaged Drinking Water ( Other than Packaged Natural Mineral Water )
For Details, refer to https://www.manakonline.in/MANAK/ApplicationLicenceRelatedrpt

These standards are set by the B.I.S. ; the body which issues an “I.S.I.” license to anyone who wants to sell Bottled Water in India. Hence it is very important for you to say this correctly. You should know first whether you are going to do a business in which of the 2 kinds of Bottled Water. All other kind of Bottled Water (Like Flavoured Water) are still not under the B.I.S. framework ; hence I won’t talk about that.

It is very important to talk correctly about the product for which you will be asking for a loan. The officers sitting at the opposite desk judge you by various methods. This is fundamental. It tells them that you have done sufficient groundwork.

How much Loan you need for your Mineral Water Plant ?

Exactly how much is the amount you will require for your mineral water plant is the Total Investment for this project. This is the Capital Investment, the money you require towards the machinery, land and other permanent establishments, one time.

Another type of amount which you might require is the ongoing kind of money for various needs such as day to day purchases & consumables, salaries, overhead expenses, fiscal expenses like Bank EMI, interest, Legal expenses and much more. This will be the Working Capital.

(# Please read a special article written on Cost Components to know more)

Once you are clear about these, you can draw your own financial projections. For this, you can take help from any financial consultant like a C.A. or some voluntary organizations like the B.Y.S.T. (in Pune, Hyderabad, Chennai) or De Asra (In Maharashtra only). The consultants will charge you more in comparison to these organizations, however, a consultant makes it specially for you.

What kind of report can you get from them

Usually people go for “Project Report” which is a very popular term for the Bankers. These consultants will offer you a project report for your Mineral Water Plant. A Project Report is a statement which tells the Bankers , on exactly

  • How Much money the proposer wants ,
  • and how is he going to Repay the same, in a stipulated time,
  • and indirectly this also tells the bank, exactly how much money they will make from this, in form of Interest (which is the Banker’s Business)

In other words, the project report is a sales document for the entrepreneur and not just a “yet another legal document“.

It tells you how much money your business will make

First, it tells you exactly how much money your business will make from your proposed project. From this money, you will pay the Interest on the Loan for your Mineral Water Plant. Hence bankers will see first, whether your project really is capable of doing so. For you it may be the first time of setting up a Bottled Water plant; but for bankers, it’s an everyday affair. They might have seen many more cases than yours and the might be driven by some prejudices about this industry itself.

Your Document needs to convince them

The Project Report which you will take to the bankers, will need to convince the bankers that …

  • The Industry is growing
  • How your business is going to generate profits
  • How will the banker benefit
  • To do this, how much exact amount you require

Your inputs for making the project report are vital

The Consultant agency or an individual practitioner is not an expert in the industry domain i.e. Packaged Drinking Water. It’s you whose inputs will be required while preparing the project reports. So, it’s important that you should collect all this necessary information prior to going to these people.

How can you get these details ?

  • Searching the suppliers online & approaching them individually 1 by 1
  • Asking one of the existing plant owner & getting them

Yes, you actually will need to do a lot of legwork before you actually start going to a bank etc. However, a direction can be had by some experts in this domain like what we run a live training on “Idea to Actualization of a packaged Drinking Plant“. In this most of your initial doubts will get clarified. Since 2015, we have been conducting this, and there are many success stories. During this we do have a special session on “Cost Comparison” of various plant types & also train the participants on how to arrive at the capital cost exactly. Do check the next training & attend that.

https://mineralwaterprojectinformation.org/live-training/

Next Part is simpler …

Preparing your own capital

Bankers will never fund the entire amount. You will need to be ready with your own contribution. Usually 25-30 %. There are many agencies like the SIDBI, which helps you in the seed capital. Meaning, they will fund some 10% in the own capital (redcing your burden by 10%).

Get Ready with Collateral Security & Guaranteer

Collateral Security is some part of asset which you can pledge with the bankers till the tenure of your loan. Once you repay, it’s freed. For this, the consultants will help you a lot.

Guaranteer is a physical person, who knows you well, and stands guarantee that you will repay the loan and if not paid, Bank can collect the EMI or the interest from you.

(This sounds little harsh, but why will someone unknown fund you ? He will, provided he gets assurance besides the profit assurance by the Project Report.)

There are schemes where you don’t require a security or a Guaranteer

True. There are certain schemes from the GOI where you don’t require both of these or at least can skip the guaranteer. A Scheme called CGTMSE is already in place and many other schemes by the GOI. The institutions like the BYST will help you in getting that.

Look for Subsidy issued by the Govt Schemes

Subsidy is some kind of encouragement given in form of some fiscal benefit to the entrepreneur for setting up his enterprises, to encourage employment. There are 2 kinds of subsidies :-

  • Subsidy by Central Govt
  • Subsidy by respective state Governments.

Refer This Website for getting details about subsidies. However, here are a few notable points :-

  • Central Govt has just 1 scheme running for years through which you get 15% investment back (On the machinery value).
  • This amount should not be more than 15 Lakhs. In other words, projects above 1 Cr of investment in machinery won’t get this subsidy.
  • This gets deposited into your bank account directly by RTGS, when it’s available & sanctioned.
  • There are many consultants which may help you to get this. They will charge their professional fees.
  • Besides the Central, State Govt also float certain subsidy schemes, kindly approach the District Industries Centre (D.I.C.) in your respective state for that. Agencies like De Asra might be of help to you in this.
  • If you are applying for a subsidy; inform the bank in advance.

Summary of steps before applying for Loan for Mineral Water Plant

  • Get proper domain knowledge
  • Decide Which Kind of Project you wish to setup
  • Calculate your exact need of Finance.
  • Look for Subsidies
  • Prepare a project report
  • Apply to the Bankers

If you have doubts …

You can comment or ask a query in form of comments. Or can shoot a mail to mineralwaterpune@gmail.com or can simply fill a contact form

Thanks. Let’s keep in touch !

Categories
Articles Mineral Water Business Mineral Water Plant Cost

Water Purifier Plant Project Cost

While looking at the query “Water Purifier Plant Project Cost” ; I tried entering into the query maker’s mind. And concluded that the person more relates to setting up a Mineral Water Plant or a Bottled Water Plant or a Packaged Drinking Water Plant (the way it’s officially called in India).

Let’s look at the basics ..

The basics remain the same; whether you wish to setup a plant in India, or abroad. The basics start from the same things like

  • What is that you have in mind .. like setting up a “Mineral Water” like the “Himalayan” which costs more than the regular “Packaged Drinking Water” ?
  • Or you are willing to setup a plant which produces the regular “Packaged Drinking Water” (which is sold at Rs. 20 today)
  • You may be having land, water ready with you, however, looking to setup a plant on the land you have. And my be willing to know how much will be the cost.
  • Do you find opportunities if plastic is banned & what will be the alternative to package the bottle ?
  • Or you might be an entrepreneur who is smart enough to get the water produced at one of the already functional plants & thereby would save the “Water Purifier” Plant Project Cost.

The Costing Fundamentals remain the same

The costing fundamentals remain the same.

  • The Capital Expenditure (Capex)
  • The Operational Expenses (Opex)
  • The ROI (Return on Investment)

As an investor, you would like to have a deeper dive into these principles. Many of these items are covered on the other articles on this website, suggest you to have a look at those like

Also refer the other articles if you find them valuable.

This is all covered at 1 single place

As an investor, or an entrepreneur, do you want to get answers to these questions, comparisons head to head , exact idea on the ROI, need to know the details of what a Water Purifier Plant Project exactly consist of, or can know what will be the future in this “Water” niche ? It is all covered under our Live Training

Want to know more ?

Please write to us at mineralwaterpune@gmail.com to get answer or post comments on this article. Thanks & best luck !

Categories
Articles Mineral Water Business

How to Start Mineral Water Plant

10 Steps to start a Mineral Water Plant

  1. Understand the Opportunity and the Kind of Investment you need
  2. Know the resources required like Water, Land & Building, Machinery, Electricity, Manpower, Money etc. and Choose your Investment Zone.
  3. Select the type of Business you wish to setup : Whether you want to go for a Bottle + Jar Unit or Just Jars or Getting done from a Third Party (Yes, it’s possible !)
  4. Create a Proper Business Plan. This will prepare you exactly for a very successful business. Read more about this here
  5. Make projections through a Project Report & know exactly how much R.O.I. will it provide. If required get help from Organizations like De Asra for this. They help you to get this done at a concessional rate.
  6. Once you are aware of the Total Investment required for a plant, you are clear with how much capital you need to raise. Apply to investors or Bankers for the same, while contributing your own capital as contribution.
  7. Now look for proper Vendors to get the machinery & other resources. You will require several experts here like the Machinery Suppliers, Construction Agencies, Electrical Contractors besides your own employees. Shortlist a few of them.
  8. Now choose suppliers carefully. It is not a bad idea to go for a total Turn-Key project contractor who will organize everything for you & gets your plant running. You can even appoint Consultants; who will work between you and the suppliers. The difference in Turn Key Contractors & Consultants is the Turn Key Contractors work with a single umbrella type pricing; whereas consultants work with individual service charges for consultation, which may not include the machinery or equipment pricing.
  9. Once you get the Loan Amount Disbursement, you should get the project completed in record time. The major hitch here is the B.I.S. License, for which one needs to prepare well from beginning. We suggest you should be always consult for each step you take while starting your Mineral Water Plant. B.I.S. has norms for each of the component, be it partitions or the type of Machinery. Best way is to work with a supplier from start. Take his advice.
  10. Your Mineral Water Plant will start practically when you get a B.I.S. issued ISI mark. Once that is in hand, you are all set to run your Mineral Water Plant.

The Best Way to do this

Attend our Training

We conduct Training Wokshops for the aspirants who wish to setup their ventures in this Industry. It is more focused on creating & Guiding entrepreneur-businessmen willing to start Mineral Water Plant. It has been very well received since 2015. Look at the Training History and the Reviews as well.

Check Next Training Date

Categories
Articles Mineral Water Plant Cost

20 Ltr Jar Mineral Water Plant Cost

20 Ltr Jar Mineral Water Plant Cost

Total Investment for Water Jar Plant

Latest Update (Aug 2020) :- After the Covid-19 outbreak, things have changed rapidly, and Water Business is no exception to it. Direct Demand from houses directly has increased, and hence the 20 Ltr Jars from houses has become a “go-to” model. Entrepreneurs are asking the 20 Ltr Jar Mineral Water Plant Cost , more and more now.

In fact the Mineral Water Plant Machinery Cost as a whole will also observe a change now. It will certainly have some sort of additional quality check must-be’s from the B.I.S. You can also check a Video uploaded on our Youtube Channel. We can also have an open discussion on this subject through a Blogger Post, or we also have a water business focused group on Linked-In, where we have created a post, let’s keep discussing there as well.

Mineral Water Packaging

Mineral Water ( Packaged Drinking Water ) is packaged in various forms. The most popular ones are :-

  • Bottles of 1 Ltr, 500 ml, 200-300 ml & 100 ml ( The PET Bottle Model will be in threat, as the Govt will be scraping the 1 time plastic usage from 2022). Read this article for more information
  • Jars of 20 Ltr, 5 Ltr (This is the most go-to model now)
  • Glasses or Cups of 200 ml or 100 ml (This is also banned now)
  • Pouches (Now banned at many places) of 200 or 250 ml

Out of the 4 types mentioned above, Jars is the type of Packaging which is used for bulk consumption in houses or offices. Although 2 sizes are available, 20 Ltrs is the most consumed one, hence the most popular as well.

Let’s have a look at the 20 Liter Jar Packaged Drinking Water Plant Cost through this table :

20 Ltr Jar Plant Costing (Based in August 2020)

AssetAppx. Price (Lakhs) for Low Budget PlantAppx. Price (Lakhs) for Medium Budget Plant
Water Treatment Plant 1000 LPH / 6.502000 LPH / 8.5
Lab , B.I.S. & Other Licensing Cost6.506.5
Empty Jar Washing Machine1.251.25
Jar Filling Filling Station / 1.15Filling Machine 120 JPH / 4.5
Other Utilities Like Electricity, Gen set etc5.005.00
Interior for BIS2.003.00
Construction for Shed of 2000 Sft @ 600 Rs per sft12.0012.00
Total Cost 34.5 40.75
Note :-
1)The table shown below can be used to check 20 Ltr Jar Mineral Water Plant cost.
2) Checking all the items is important. The Shed construction cost, utilities etc as well !
3) For details you can attend one of our training sessions.

From the small table above, you can notice some of these things like :-

Even if you Double the Plant Size, it doesn’t double the investment.

# How will it make the difference ?

Capacity, when doubled, makes your capacity to produce & offer 2 times, hence the chances of an better R.O.I.

(We have a detailed cost calculation session during our Live Training Sessions, which highlights this issue & offers you a better clarity on this most important aspect)

Low Budget Plant has a Jar filling “Station”, while medium budget plant has a “Jar Filling Machine”

Actually, low budget plants don’t require a “machine” as the production requirement may be very less.requirement may be very less. In such a case, we have seen, on most of the plants, hand operated “stations” are provided; which are perfectly fine.

Post Covid-19 Precautionary measures

However, a little care needs to be taken while constructing these stations here onwards to reduce the manual contact points within the plant. They should be provided with Following modifications :-

  • Electronic Sensors to start filling automatically after a time delay.
  • Electronic sensors to STOP the filling automatically after a time delay.
  • The Capping section should be pneumatically operated & working on Sensor logic like stated above.

Will this affect the costing ?

Slightly. However, as your primary focus should always be on maintenance of plant hygiene, maximum Non-Touch operations should be involved. It’s also vital from the B.I.S. point of view. You can always educate your audience about these to enjoy an upper edge over the competitors, though your plant cost goes a marginally higher.

Lab & B.I.S. Cost is the same irrespective of the plant size

The Setup & Testing parameters from the B.I.S. are very common for any size & type of plant. Be it Bottles, Pouches or Jars. Or be it a very small plant, or a huge plant.B.I.S

Construction Cost looks on a lower side

It is a factory setup, and without a floor on top. Hence no need to construct an R.C.C. slab. This will bring your cost of construction drastically down. The cost can be further saved if you hire your place for long lease (like 10 years).

Conclusion : to get 20 Ltr Jar Mineral Water Plant Cost Accurately …

However, the table mentioned above gives you approximation. And the prices are time sensitive. Better to calculate exactly by taking each & every cost individually. Look for certain articles like cost components. Besides the same, we do conduct Live Training in India for this single purpose :- Training the budding entrepreneurs in this field. Attend one of these. Best Luck.

Categories
Mineral Water Uncategorized

Mineral Water and Packaged Drinking Water

Mineral Water vs Packaged Drinking Water

We very generally call it “Mineral Water”. Even for this site, for general understanding, we too say it Mineral Water. But it is “Packaged Drinking Water”, when we call it from an authority called “B.I.S.”. 

Already , I have provided my answer on site Quora :-

Read …

Saumitra M Ghotikar‘s answer to What’s difference between Mineral Water & Packaged Drinking Water? on Quora

We provide many answers to your questions during the Training we provide Idea to Actualization. Please attend the next training!