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.