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.
Reason No. 3 :
Just Machinery Cost is not the Mineral Water Plant Cost
Many times, participants from our Live Training Sessions, get frustrated after a special session we conduct on Comparison of Various Plant Models. In this session, we compare 2000 LPH, 5000 LPH & just the jars Model Head to Head with the complete R.O.I. based calculations. There the less informed entrepreneurs get 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 :-
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.
However, we strongly suggest you to attend one of our Live Mineral Water Plant Trainings. We list down this each item & get you to the actual cost through dummy case study.
Alternate Way is to get a consultancy from us in which we visit your proposed plant, help you create the layout, create the financials prior to you going to the CA, and also be with you till your proposal get submitted to bankers/investors.
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 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.
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.
(a) Actually, the cost should include both :- The Capital Cost & Operational Cost. 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. Check out reviews and also the next schedule ! Or Contact Us to Know More about the next training. (It is recommended to please read out the FAQ prior to contacting us.
(c) Kindly sign up to our Newsletter to be kept informed about our further trainings and also getting industry updates.