Category: Mineral Water Business

This Category will show all posts pertaining to the Mineral Water Plant as a Business. Mainly towards the decision making aspects.

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Mineral Water Business

Mineral Water Plant Business Plan

What Is A Business Plan ?

It’s just like a Roadmap towards achievement of certain Goals decided. A Plan might consist of several steps one needs to take in the process of achievement of that. It is just like getting to a place with a pre decided route & means.

Is This Applicable to A Mineral Water Business ?

Mineral Water Busines Plan Expert Mr Biman Gandhi
Mr Biman Gandhi , Professional Business Coach

For that matter, it’s applicable to all businesses, not just Mineral Water Business. Recently during our Mineral Water Plant Training, we requested a Professional Business Coach, Mr. Biman Gandhi to conduct a small Session on this subject to guide our participants. Post the training, we also interviewed him.

Here is the Audio Recording of the same :-

The Summarized Text Version of the Interview :-

#Business is not an easy occupation. A well-written business plan is inevitable when you intend to do a business

#Doing business is a Serious Business

#The GPS analogy and how it is useful when it comes to write down the business plan.

#Business Plan helps you to convert individual desires into a vision that is inclusive for all. A vision invariably talks not just about profit, but also the People and the Plant.

Various components of Business Plan such as

• Executive Summary, Vision, Mission and Purpose of a business.
• Financial Consideration
• Business Model, Marketing and Services
• Branding, Promotion
• Compliance, Statutory Requirements, Norms, Standards – Due diligence
• Plant and Machinery Costs, Profit Margin, Expenses
• Availability of human and non-human resources, the location of the business
No amount of planning or the best of the best plan ever give you a guarantee to be a success. But if you dive into a highly comptetitive business like a Mineral Water Business ; without business plan definitely is surety to failure.

#The growth rate of the Mineral Water Business is phenomenal in India – It is growing at a rate of 25% every year.

#A well-written business plan is a roadmap and it serves as the guide. It keeps you on track, it compels you to set the priorities, it guides to you take informed decisions and make right choices, It makes you more sincere about your objectives.

#It is advisable to take an “External Help” such as Business Coach or Consultant. Because writing the business plan is not about just fitting the content under various sections of a business template that you might grab from internet

Making a Business Plan is the 1st major step

Once you create a Business Plan, you are actually defining the What , When, How for your Ideas to come into objects. “Why” is the Vision, Mission. Not that they are not there, but a Business Plan demands that to be defined properly.

Why It is Necessary for a Mineral Water Business to have a Detailed Plan ..

The Mineral Water Business, which really started booming up in India from 2003. It is split between the 3 national brands and the others. The others are the local brands, some really are “Brands” though local and others are just some names, not brands. 

With the emergence of Totally Digitized economy, from 2016, the market actually started taking a different direction & shape. It’s not possible to operate with the “Without bill” mentality. Meanwhile, everyone is venturing into this ever growing market. Hence the competition is severe. To really survive, you need to work with a strategy. This demands all things to be put on a paper, in advance. Hence this demands a perfect Busines Plan to be in place. 

Get Your Vague Ideas Clear by Attending an Idea to Actualization Training, Decide Your Business Model. We recommend Hiring a Business Coach (Get 1st FREE Consultation from Mr Gandhi, absolutely Free). Fill Up the Form on Contact Us Page.  

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Mineral Water Business Mineral Water Business Profit

Is Mineral Water Business Profitable

Mineral Water Distribution in India

Profitability of a Mineral Water Plant

All the time, we call it “Mineral Water Plant”, it is actually “Packaged Drinking Water” most of the times. As there are many major differences between these two. There is a regulating body, the B.I.S., which controls & monitors the quality of the water produced from every plant in India. You will the I.S.I. Mark mentioned on every bottle in India. Report to the BIS, if you find this mark not visible on a bottle. 

There is a difference between a Mineral Water Plant & a Packaged Drinking Plant as far as the profitability is concerned, as the end prices vary. If we talk about the B.I.S. context, there are currently appx 25 Plants which produce and sell “Packaged Natural Mineral Water” and over 5,000 plants for “Packaged Drinking Water”. The selling rates differ. For this article, and as a general guideline, we shall talk on “Packaged Drinking Water”.

The M.R.P. for Packaged Drinking Water 

Currently, Packaged Drinking Water is sold at Rs.20/- average all over India. This price is the M.R.P. Maximum Retail Price.It includes all costs involved till it reaches the Consumer. Figure below explains The costs involved :-Mineral Water Distribution in India

The Figure explains Mineral Water Distribution in India. Kindly note that, the cost is different for each point. The M.R.P. is at the Point of Sale. The Price to a Super Stockist (Usually for a city) , is decided by the producer, the plant owner. Even the End Price, the M.R.P. is also decided by the producer, the plant owner. The Super Stockist decides the price to the local area distributors. D2C is “Direct to Consumer“, which is also gaining momentum now, where the producer omits all the other stpes and sells to the consumer directly. We explain this under a special session in our training, called “Smart Marketing”. 

M.R.P. defines your gross earning per bottle, not your R.O.I.

To prepare your business strategy, the M.R.P. can be indicative; but don’t commit a mistake to calculate your earning , R.O.I. straight from that. On the outset, Mineral Water Business IS profitable, as there is a growing demand of “Pure Water”; you don’t need to be an expert to know this. But to make Your Mineral Water Business profitable, you need to draw a perfect business strategy & planning suitable for Your Business. You can read a special article we have written on Mineral Water Profit Margin for details. 

#Listen to the Audio Interview of a Business Coach who has shared his views on how to create your Business Plans.

Should You Go for Mineral Water Business ?

If you think that there is enough opportunity in the Mineral Water Business, you are right. You should go for a Mineral Water Business. And that too, with proper and a professional way, without repeating the mistakes which the failed entrepreneurs have made in past. Let’s take those as reference examples & create a very profitable Mineral Water Business.

(You can also look at some discussion going on this subject on Quora as well)

Where to Begin ?

Why not start by learning the basics of the business from the people who have already had an experience of more than 15 years in the field, and who are keen to create Successful Mineral Water Businesses ? Yes, at Mineral Water Project Information, we focus on creating Successful Mineral Water Entrepreneurs through Training Sessions by educating them on various aspects like :-

  • Why Mineral Water Business, Opportunities, Challenges
  • Type of Business Models, Attributes of each Model : Own Produce, Distributor, Franchise, Third Party etc.
  • Profit Margin & Comparison across major models
  • How to Define Machinery to Suppliers & Decide Specifications
  • How Can You be different by Smart Marketing Techniques

A little about Us …

We have been doing this from 2015, and going deeper and deeper now. You can watch a video on the history of the trainings, read the About Us section, on who we are, and read Reviews from the past attendees. And can still shoot questions or comments. You can always write to us through the Contact Us Page

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Raw Water Required for a Mineral Water Plant

How Much Raw Water is Required for a Bottled Water Plant in India Daily

Mineral Water vs Packaged Drinking Water

As you might be aware that Bottled Water Plants in India are either Packaged Natural Mineral Water Plants or Packaged Drinking Water Plants. These names are defined by the B.I.S. [The Bureau of Indian Standards], which is the govt body in India to monitor the quality of the Drinking Water sold in Bottles in India. There are quality standards defined by the B.I.S. and these standards are also numbered.  The Packaged Natural Mineral Water bears IS 13428 and Packaged Drinking Water bears IS 14543 as their standard numbers.In India, you find Packaged Natural Mineral Water 22 plants as on date. And the remaining (5500 +) are “Packaged Drinking Water Plants” 

The Principle Difference

In principle, the difference is in the quality of the raw water. If the raw water has the same qualities defined by the B.I.S. as the Packaged Natural Mineral Water, then it will be Packaged Natural Mineral Water IS-13428, otherwise, needs to be treated using the R.O. Technology (Reverse Osmosis) to purify the Raw Water & produce the final drinking water the Packaged Drinking Water IS-14543. During this process it rejects certain amount of water. Effectively,there is a difference between the Raw Water Extracted from ground and the Pure Water Produced. Hence, the calculation of Raw Water for Mineral Water Plant becomes a fundamentally important thing here.

Before going further, a quick explanation of the rejects

The rejects are the impurities filtered out from the plant, in form of Reject Water. The reject water can be used for gardening, sanitation etc. 

How much is the difference ?

The difference depends upon the quality of the Raw water for mineral water plant. More precisely : How much impurity the raw water contains. To know the impurity of Raw Water, it needs to get tested from a laboratory. Once the report is available, we can know how much water can be used & how much will be thrown out. The difference depends upon the Raw Water Report. (Actually you just require a simple TDS meter to know how much water you can use & how much to reject.)

Is it necessary to know this ?

Yes. It is necessary for you to understand this thoroughly. As Business Owner, it is not expected from you that you should know the operational details. You are expected to hire proper, able persons on this job. Still, you should know why you need them & the basics of Raw Water to Pure Water.

Another reason why you need to know this is : You should be able to specify the exact Water Treatment Plant Capacity for your Mineral Water Plant. Usually, these water treatment systems are specified in terms of LPH (Ltrs Per Hour). Once you are aware of how much water you are going to produce daily, it’s very easy to calculate the hourly requirement. 

Give Exact Specifications for Water Treatment Plant & Other Machines too !

Once you know your own exact requirement, you can specify to suppliers correctly and hence you are likely to get more correct quotes from suppliers from websites like Indiamart, TradeIndia, Alibaba, etc. Define your search properly, compare various suppliers & get your best offer from them. Define your filters properly & call exact suppliers, compare them.

Mineral Water Plant Suppliers selection Criteria

How to Appoint the best supplier ?

This is very relevant, but go with the experienced in the field. Usually , people don’t do proper pre research & we have observed after doing over 150 installations that those who fail, do not get proper information. We have designed our Live Training syllabus to keep your mistakes to minimum. The intro session itself starts with this. Here’s a screenshot of the session’s main topics :-

time line for Mineral Water Plant Training 1st Day

A Business Owner should be ready for all situations !

The Groundwater quantity may go down with changing seasons; hence it’s better to know & be prepared as a business owner in advance as to how much is he going to need so he can fill up the gaps between demand & supply.

It will be also useful to calculate the size, capacity of the borewell as well, if you are buying new piece of land for your project.

Types of Raw Water for a Mineral Water Plant

Water is the basic resource. One can use Borewell Water, Municipal Water for their Mineral Water Plant. The Open Well also can be used as water source, but River Water Can’t be used as Raw Water Source as per the laws from the B.I.S. (Bureau of Indian Standards and P.C.B. (Pollution Control Board)

Why River Water is Not Allowed ?

River Water can get easily contaminated , hence it is not allowed. Borewell, on the contrary is the best source as the source is well protected within the soil itself. Talking about Open Well; it should be covered well & you will need to submit reports to B.I.S. from time to time. 

Can We Use the Groundwater Directly ?

No. You have to treat the water to the desired level of purity before Bottling. For this, a separate Water Treatment Section needs to be established within your Mineral Water Plant. We shall cover this in the Mineral Water Plant and Machinery. But for water, the impurity is in form of TDS (Total Dissolved Solids). They are removed from the Raw Water and this TDS containing water is rejected. The amount of water which is useful & rejected can be calculated.

Initially you do not need a Water Test Report

Usually, the mineral water plant suppliers will demand a Water Test Report of the Raw Water before giving you the quote. In a way, they are right. Then, you typically approach to an ISI approved lab or a local water testing lab with your raw water sample, which offers you a detailed Water Test Report, with all BIS specified parameters. No problem if you get that, but at this stage, when you have not even decided anything, it’s pointless to get this detailed report. At this stage, you require mainly 2 things :-

  1. How Much Raw Water Is Available to You
  2. How Much Pure Water You can get from the Raw Water

If you know just these 2 things, you can design your whole plant. Otherwise, if you go to any BIS approved lab, you will end up spending a huge amount, which is not needed at this moment. And even if you do this, you will again need to carry out tests once you are through with your finance & Green signal from all authorities, it is a BIS necessary thing. Just look at the following image to know how much the BIS approved labs charge for the tests.

Rates by ISI Approved Labs for Packaged Drinking Water

As discussed, you don’t need this. You can arrive at your desired results in just 10-15% cost of the above charges mentioned. During our Training or in the Home Study Course, we train you on this aspect. 

Get Your Water Sample Ready

If you have your Raw Water Source ready; just take out 1 Ltr from that & test it. Alternatively, if you want some better accurate results,t here are plenty of Testing labs located everywhere, but it is better to get it tested from a Water Treatment specialist. We too offer this service , in which we get the water tested & we also suggest you the treatment for the same. Please contact us if you are looking for the same.

Water is also a cost for your plant. Now, it’s going to be chargeable. Tomorrow surely, if not now. We do consider it as a cost component. And there are certain other cost components too, besides this. You can read a detailed post about the various Mineral Water Plant Cost Components in this article.

Designing Mineral Water PlantIf you attend our Live Training or buy the Home Study Course, you can also do it yourself (Calculation of all relevant costs); we teach you a secret simple method by which you can also know the Quality of the Raw Water as well as whether the Quantity available is sufficient or not.

 

We have trained over 1000 Aspiring entrepreneurs from 2015. Many of our students are finding our training very useful. You can check reviews from our attendees. 

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Land for Mineral Water Plant Resources Required

How Much Land Required for a Mineral Water Plant

Land Required for a Mineral Water Plant 

When someone takes a decision to start a Mineral Water Plant, the first thing he looks for is Land which will consist of an adequate Water Source Available. You may be having big land or might be having just a piece of land with you. Still, it is necessary for you to know exactly how much Land will be required for your Mineral Water Plant.

It is Divided into 2 Parts Mainly 

The Covered Area and the Open Plot Area. The Covered area is the Shed in which the actual production takes place; whereas the open area is for the utilities, parking space, the lawn, beautification, scrapyard and other things. Once you total out both of these, you arrive at the total plot area required.

How much will be the Shed Size ?

This purely depends upon the machinery you have decided to house in. This depends upon the Production Capacity of the plant. Once you have your capacity properly calculated ; you can decide the machinery matching that capacity. The Machinery suppliers supply you the dimensions. Then you need to draw a proper layout of the plant to get the exact Shed Size required for your Mineral Water Plant. 

Can It be setup on a G+1 Building ?

Yes, A Plant can be setup on a G+1 type of construction, with a limited space. The layout of the plant & machinery should be carefully done in such a case.

Land Location

While selecting the land, please see to it that it is well connected to all the major roads, so that your distribution vehicle , visitors coming to your factory or even your own workforce can come there easily.

We Cover This in Details In the Training

In our Home Study Course or during our Live Idea to Actualization Training for Mineral Water Plants; we cover this in great details through dedicated activity session. During the Live Sessions, participants are given an exercise to calculate their plant sizes, Machinery Design & Total Plant Investment Calculation. 

Also Check Other Resources 

Besides Land, also check other resources required like Water, Electricity, Man, Money etc. Read the detailed post on Mineral Water Plant Cost Components which throws more light on this. 

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Mineral Water Business Profit

5 Steps to Calculate Mineral Water Plant Profit Margin

How Much Profit One Can Earn from a Mineral Water Plant ?

This question is often asked to us by many website visitors from time to time. And it is a very important consideration indeed as far as an investor is concerned. I will say, not just Profit Margin, but also the consider the R.O.I. (Return on Investment) . This profit margin is considered in terms of percentage on the total sales or they say “Cost per Bottle“.

The Downside of Profit Margin Generalisation 

You will see many people declare “Cost per Bottle” with a Chart. Even we too, some time back used to publish this on our site & articles. But over the time, have come to know the downside of that. What is that ?

The basis on which the Profit Margin is calculated should be a fixed set of Product Mix which you have decided to produce and their quantities with a stipulated time period. For Example, let’s compare 2 entrepreneurs Ramesh & Suresh head to head :-

Product Mix by 2 Entrepreneurs

1 Ltr Bottles (Case of 12 Bottles)20 Ltr JarDaily Total SaleDaily Total Sales
Ramesh800 per Day @ Rs.80 to Distributor200 per Day @ Rs. 40 to distributorRs. 64,000/- + Rs. 8000/-Rs. 72,000/-
Suresh500 per day @Rs.90 to Distributor500 per day @ Rs. 30 to distributorRs. 45,000/- + Rs. 15,000/- Rs. 60,000/-
(Names are Hypothetical)

From the table above, you will notice a few things :-

  1. To calculate the exact margin of profit, you require further data like how much sale made direct, how much to distributor (their rates also vary)
  2. The actual profit made by selling 1 ltr bottles by both of them is different due to different selling rates. 
  3. The Cost for Ramesh and Suresh might be totally different. So the profit as well.
  4. The whole data, if collected should bear certain time period , say 6 months, 1 year etc.
  5. From season to season, the rates differ. Not to the direct customer, but to the distributor. Again the profit money will vary.
(You can read an article where we have discussed whether a Mineral Water Business is really profitable.)

Mineral Water Plant Profitability Costing 

Watch the Video and you will understand how we train you on calculating your detailed Plant Cost Calculations. Even existing Plant Owners also attend this Training which actually brushes up their knowledge on this aspect and helps them further on choosing right products in future as well !

5 Steps To Arrive At Profit Margin :-

1) Know Your Business Model

This is the starting point to all. Whether you are going to Produce your own brand, or just to Distribute other’s , Going for a Franchise Model or getting it done from other manufacturer on a Tri Party Agreement. What is your Driving Factor, will decide your Business Model. 

# During our Live Training, we conduct a Session in Which We Discuss Various Models and their features in details.

2)Decide the Market

This is also the primary consideration. Market to Market the Selling rates differ, so the Profits as well. The Costs also vary. This too affects the Profit Margin.

3)Define Your Product Mix

This is the variants you decide to introduce into the market, with quantities defined clearly. A Financial Statement can only be drawn on exact figures. Begin with some hypothetical figures, even if you haven’t yet decided this. During our Live Training, we do guide you on how you can do a Local Market Survey Initially.

4)Define Your Costs

Mineral Water Plant Cost is not just the prices of machines put together. It’s normally a totally wrong consideration by entrepreneurs before they are willing to setup their plants. We have explained in details on the following 2 posts very clearly about the subject. Look at them :-

5) Create Time-Bound Financial Projections 

As we have seen from the above table; you will arrive at the profit margin percentage only over a period of time. Typically 3 years. Once you are ready with the above 4 steps, you should approach a financial advisor to get the Financial Projections done in a proper way. During our Live Training, we conduct a special session in which we compare 3 popular Models head to head and arrive at the most important consideration :- the R.O.I. which we discussed at the very beginning of this article.

Conclusion 

The profit margin calculation is not as easy at it seems. So, do take conscious decision before setting up a mineral water plant. After understanding that almost 50% mineral water units close down every year; we have concluded that they do not close down due to competition; but due to wrong calculation basis, and taking steps in a wrong direction. If possible, attend the next Mineral Water Plant Training.

Watch the Video Below which covers a brief history of the Mineral Water Plant Trainings we have been conducting since 2015.