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Mineral Water Plant Cost Components – what are they ?

Mineral Water Plant Cost doesn’t just include the initial sum of money you require to start or setup the plant, in fact; it also includes the running cost & operational cost calculations. I shall go into details here, and shall list the major components one by one.

#Update (Aug 2020)

The Groundwater & Plastic laws are also evolving newly. Hence consider 2 additional costs in the Licensing Component like :-

The License & Other Costs Involved (Legal Expenses)
The Equipment which is necessary for the same
The recurring cost e.g. The Recycling Cost for Plastic

A New Service by us

We have started a new Service : Estimation & Forecasting in which we shall create the total investment estimate of your proposed water plant business, and forecast the profits for 3 years.

#this is suitable for those who have decided to setup a plant. For those who havent decided still, can opt for our Trainings

Is it required to be considered by an Entrepreneur?

Yes. I don’t say, you should be a cost accountant; but you should know what will the costs be in order to run the business profitably. Often entrepreneurs are seen to be madly driven by emotion alone. Their decisions should base on Emotion + Data. This costing awareness will prepare their enterprise to be run in profits over the years.

What Are the Mineral Water Plant Cost Components ?

Sr No	Component Head	Exact Component	From Where You get the Price of This	Supplier Source
1	Machinery & Equipment	Borewell for Groundwater Extraction	Borewell Supplier	Your Contacts, India Mart, Trade India, Alibaba etc.
		Water Treatment Plant	Water Treatment Plant Suppliers, R.O. Suppliers etc	Your Contacts, India Mart, Trade India, Alibaba etc.
		Bottling Machinery	Blowing Machine, Filling Machine, Packaging Machines Suppliers	Your Contacts, India Mart, Trade India, Alibaba etc.
		Lab as per ISI	Laboratory Equipment Suppliers	Your Contacts, India Mart, Trade India, Alibaba etc.
2	Construction	Shed	Local Civil Contractor	Local Contacts, Networking Clubs like BNI, Just Dial etc.
		Interior Furniture, Partitions etc	Interior Contractor, Furniture Supplier	Local Contacts, Networking Clubs like BNI, Just Dial etc.
		Outer Construction, Fencing etc	Local Civil Contractor	Local Contacts, Networking Clubs like BNI, Just Dial etc.
3	Utilities	Compressor, D.G. Set, Cooling Tower, A.C. etc	Respective Agencies	Local Contacts, Networking Clubs like BNI, Just Dial etc.
4	MEP	Mechanical, Electrical & Plumbing Work	Respective Agencies	Local Contacts, Networking Clubs like BNI, Just Dial etc.
5	Office Furniture and Softwares	Computers, ERP System, VTS Systems etc	Respective Agencies	Local Contacts, Networking Clubs like BNI, Just Dial etc.
6	Marketing & Financial Costs	Website, and Other 1 Time Softwares, Digital Marketing, Chartered Accountant Costs	Respective Agencies	Local Contacts, Networking Clubs like BNI, Just Dial etc.
7	Legal & Consultancy Costs	Licenses, Renewals, Consultancy Charges, AMC's etc	Respective Agencies	Local Contacts, Networking Clubs like BNI, Just Dial etc.
8	Operational Costs	Purchase & Consummables	Respective Agencies	Your Contacts, India Mart, Trade India, Alibaba etc.
		Manpower, Bank Cost, Electricity, Rent & Other Costs	Respective Agencies	Local Contacts, Networking Clubs like BNI, Just Dial etc.
				Costs beyond this

The Links mentioned in the Table above are :-

India Mart 2. Trade India 3. Alibaba.com 4. BNI India 5. Just Dial

Details about Each Cost Component :-

# Machinery & Equipment

This Cost Component consists of the costs towards the following :-

(1) Cost of Borewell :-

The Borewell is required to extract Groundwater from Land. It depends upon how much water you will require for the plant to run. However, the Groundwater is not at our will. It differs from place to place, season to season. But solely, the cost of a Borewell is usually calculated from the depth you need to drill through.

Even if you already have a borewell, still you should know how much is it extracting from the ground. Then you will need to compare the same (the output) with your desired production capacity. If it is less than what you propose to produce; then you might need to fill in the gap between the demand-supply by procuring water from outside or may be a second borewell. This additional cost also needs to be taken into account.This cost can be had from the Borewell Suppliers. There can be local persons or you can refer the suggested directories.

(2) Cost of Water Treatment Plant

This is actually a set of Equipment, through which the raw water is passed to get the desired resultant water. The deciding cost factors for this is the Raw Water Quality. Usually, if you present this to any BIS approved laboratory, they will offer you a Test Report. On the basis of this, you can get a Quote from any Water Treatment Plant Supplier or Mineral Water Plant Supplier. The laboratories charge something like Rs. 10,000 plus amount and give you a complete detailed test report.

#Tip :- If you have yet not decided for a Mineral Water Plant; or you just need a proper quote for evaluation purpose at this stage; YOU NEED NOT GO TO A LABORATORY at all.

Alternate Way :-

(1) Attend our Mineral Water Plant Training, in which we share you a no cost method by which you would be able to design the exact specification for the Water Treatment Plant for your Mineral Water Plant. Once you are ready with your exact Water Treatment Plant Capacity, it is very easy to get the Water Treatment PlantCost for your Mineral Water Plant.

(2) Send the Water Sample to us and we shall offer you the best 5 parameters report at half the cost of that of the BIS Recognized laboratory (just look at the image below to check the water testing cost from the BIS approved labs), plus the notable points regarding your water treatment plant design. This is additional thing which the authorized labs don’t provide.

# It is mandatory to get water tested from a B.I.S. Approved laboratory, when you are submitting samples from your plant. It is a later stage, NOT NOW. At this stage you can skip this.

(3) Cost of Bottling Machinery

Bottling Section is divided into 3 sections :-

Bottle Making Section (Blowing Machine)-
Bottle Filling Machine
Packaging & Boxing Machines

Usually, the cost of Blowing Machine & Filling Machine varies from production but the packaging machines remain constant. Hence, you should define the exact production you for getting the Bottling Machinery Cost.

During our Mineral Water Plant Training, we take a dummy case study with sample product mix & train the participants on how to calculate the mineral water plant capacity, so that they can specify the exact specifications for the machines they require.

(4) Cost of the Lab as per ISI

The Laboratory Equipments have been specified by the B.I.S. and the cost can be had from suppliers of the same.

# Mineral Water Plant Construction, Utilities, MEP etc.

Mineral Water Plant Construction can be divided into The Shed Construction Cost, The Cost of the Interiors & Cost towards outer beautification etc. For all of this, you can contact local suppliers. Once you know how much is the exact land,plot needed etc, you can specify that to get exact quotes.

Once you define your machinery properly with their exact capacity, you can get the exact quotes and the dimensions for each machine. Once this is had; you can draw your Plant Layout properly. Once the layout is clear, the Covered Shed area and area needed for the utilities and other sections such as the MEP.

Similarly, the Internal Electrification & Piping Cost can be exactly laid down once the total connected load and distance between the machines is clear from the layout.

#In the Mineral Water Plant Training, we train the participants to prepare their own layout themselves so that, once the Shed Area and outside area is defined, the construction cost can be calculated.

# It is advisable to consider the Cost of the Total Plot into your project costing.

For all of this, you can hire local contractors, but with expert guidance who know the requirements for a Mineral Water Plant or Packaged Drinking Water Plant as per the ISI standards.. We offer this service as “Mineral Water Plant Technical Consultancy”, in which our technical team guides you on every aspect, at every step of the Mineral Water Plant you wish to execute. The advantage : You will do minimum mistakes.Kindly contact us for the same.

#Office Furniture & Softwares

While the actual machinery involved in the production process are the important considerations, the Office furniture & other cost components are equally important. Moresoever, they will be very necessary to see that you incur minimum wastage & process losses. We strongly recommend good ERP system, Vehicle tracking devices installed on vehicles of the dispatch personnel is a wise investment. Such considerations should be welcomed.

This whole thing can be summed up as the starting capital you require to initiate and setup your project.

Other Operational or Running Cost

This is the running money you require to make your investment work and generate you profits out of that. This includes mainly the following things :-

a. The Purchase & Consumables cost which includes the packaging materials used for bottling the water, plus the cost for material used indirectly such as filters, which is not the part of the final product showcased, but indirectly responsible for the produce of that. These are all tangible items.

b. The Overheads cost which includes human resource, electricity, capital cost, marketing cost, licenses & renewals cost.

How to Calculate this Cost ?

It is the running cost, and not just a 1-time investment calculation as mentioned in the other article on Mineral Water Plant Cost. For this you need to know, as an entrepreneur, as to what are the cost components in detail. And the prices of them. We have already covered this aspect in the previous paragraph.

The prices of the respective components also may change from time to time, hence these price considerations should also be kept in mind & the market trend too. To calculate the cost, use the following method :-

Make 5 separate tables for :-

Purchase & Consumables
Manpower Cost
Electricity & Other Overheads Cost
Bank Cost
Licenses & Renewal Cost

List Down their Monthly & Annual Consumption

From the Market survey, you might arrive at your approximate figures which you intend to produce. You can thus calculate how much would be your outlay for each of the cost component.

Arrive at the Fix Operational Cost monthly Cost

Total each one from the mineral water plant cost components and you will get the monthly figure. This is your monthly operational cost.

We do compare 3 major models with all major costs included; which actually help you to draw your own profit calculations. Kindly look for and attend our next Training and arrive at all of these costs exactly.

Mineral Water Project Information Reviews

We suggest you to listen to the following review from Mr Anilkumar of Bangalore, who explains the importance of understanding the Mineral Water Plant Cost Components in details :-

Besides Anilkumar, there are a plenty of participants who have reviewed our trainings from time to time.

Note :-

It is observed that maximum entrepreneurs fail as they don’t pay any attention to this section & plan their dreams badly. Entrepreneurship is not blind thinking.

For this, we dedicate a full session in our Live Training, in which we consider 3 major Mineral Water Plant Models vis-à-vis their various cost comparisons & then arrive at profit, which is the sole extract, fuel which keeps the plant running, over the years. You may check the FAQ section about questions in your mind, or can contact our support team as well. Also check out the Reviews on what people say about the training.

Why listen to us ?

We are professionals in this field, water business and also offer Consultancy to setup your Mineral Water Plant. Please check the About Us section to know who is behind this.

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

Cost Component Head	Cost Component	Component Available or Missing	Appx. Price (Lakhs)	Remarks
Machinery	Water Treatment Plant with Added Minerals Section	Yes	6.50
	Q.C. Lab as per the BIS	Yes	3.75
	Packaging & Bottling Machinery	Yes	21.00
Utilities	Electrical Transformer, Generator etc	MISSING	TBC	To Be Calculated
	Cooling Towers, Compressor , Air Conditioners and Other Utilities	MISSING	TBC	To Be Calculated
Building & Construction	Shed, Fencing, Internal Furniture as per ISI	MISSING	TBC	To Be Calculated
Misc. Work	Civil, Plumbing, Internal Electrification, Softwares, Licenses, Manpower etc.	MISSING	TBC	To 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 :-

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

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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 :-

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.
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.
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.
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).
Decide other resources cost such as Electricity, Water and add to the cost.
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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