How to Start a Water Plant Business?
People prefer drinking mineral water due to its health benefits, not only during travel but also for daily use. Therefore, setting up a water plant business is a lucrative idea, given India's increasing demand for packaged drinking water.
If you want to try your hand in this field, here we will explain how to start a mineral water plant business. Since it's going to require a significant financial investment, you can cover the growth and expansion costs with a Business Loan to achieve success.
Water Plant Business in India
Starting a mineral water plant business requires careful planning. Since it requires a great deal of machinery, labour, and setup costs, you must also stay prepared for some significant investment. The following sections will explain the reasons and benefits of starting a water plant business, the costs involved, the legal formalities required, and how a Business Loan can help you achieve your business goals.
Reasons to Start a Water Plant Business
Considering the increasing demand for safe and clean drinking water, knowing how to start a mineral water plant can be extremely useful. You may consider setting up a water plant for the following reasons:
- There is high demand for packaged water due to a lack of safe drinking water in India.
- The business offers quick returns on investment.
- It has a high profit margin with less investment.
- The number of people requiring packaged drinking water is expected to increase in the future.
- The business has a low risk of failure due to high demand among health-conscious people.
Also Read: How to Start a Business - A Step-by-Step Guide
Steps to Start Water Plant Business in India
Follow these steps to establish a profitable water plant business in India:
- Research your market, competitors, prices, and products, estimate the water plant business cost, and create a solid business plan.
- Formulate a company by deciding upon a name and structure and registering the business.
- Get all the necessary licenses, including GST registration, PAN registration, ISO/BIS certification, FSSAI registration, pollution control and pest control certification, and digital signature certificate registration.
- Select a factory location with easy accessibility and sufficient space for storage and machinery.
- Decide the equipment you need to purchase, including pumping, purifying, and packaging machines.
- Apply for a Business Loan to handle the operations, finance equipment, hire labour, or build working capital.
Raw Materials for Starting a Water Plant Business
Before learning how to start a mineral water plant, you must review the raw materials required to establish the facility. As a mineral water plant business owner, you will need the following raw materials:
- Water Source: You may source raw water from a municipal supply line or a natural resource. Choose a location close to such water sources.
- Bottles and Packaging Materials: Compare suppliers and make arrangements for bottles and packaging materials without compromising quality. These include bottle caps, labels, cartons or plastic wraps, PET, PVC, and PE resins.
- Chemicals: Different types of chemicals are necessary for a water plant business. These include antiscalants, chelating agents, algicides, corrosion inhibitors, and biocides. Filters and softeners are also necessary to process raw water.
- Labels and Stickers: After registering your business, you must create a recognisable brand to gain popularity among customers. Create your labels and stickers and place them on the bottles to build your identity.
- Sealing Materials: People looking for packaged drinking water prefer sealed bottles to ensure quality and purity. Source sealing materials from trustable suppliers to gain their trust.
- Testing Kits for Water Quality: Once you set up a water plant business, it’s important to maintain water quality. Source testing kits to check water quality and make adjustments as needed.
Also Read: 10 Best and Easy Business Ideas in India
Machinery for Starting a Water Plant Business
The machinery required to set up a mineral water plant business forms a major part of the investment. Here is a detailed breakdown of the business machinery requirements along with their estimated costs:
- Storage Tank: A storage tank is crucial equipment, as it serves as the holding area for your treated water before packaging. The size you choose depends on your production capacity, usage expectations, and customer base.
- Treatment Tank: You need a suitable treatment tank based on your production volume, treatment process, and material compatibility. Look for additional features, such as sedimentation chambers, baffles, and flocculation zones, according to your requirements.
- RO System: If you set up a water plant business with an RO system, you will need a suitable location for easy water access, pre and post-filtration stages, adequate certifications, and a proper distribution network.
- Sand Filter: A sand filter is necessary for primary filtration. It removes large suspended particles like sediment and silt in raw water before sending it for further purification.
- Activated Carbon Filter: Activated carbon filters or ACFs are crucial for water treatment plants, as they are necessary to remove chlorine, organic chemicals, and other contaminants from the water.
- Chlorination Tanks: Chlorination tanks are a crucial requirement. In this dedicated tank, chlorine is added to the treated water to make it safe for consumption.
- Micron Filter: The micron filter size you choose depends on the required retention and water contamination level. Available in 0.5, 1, 10 and 15-micron sizes, you must choose one according to the particles you want to remove.
- Ozone Generator: An ozone Generator disinfects water by removing unwanted odour and taste, oxidising contaminants, and reducing chemical treatments.
- Water Dispenser and Steriliser: If you want to offer water dispensers and sterilisers with your water plant business, you will need a reliable water purification system, water dispenser models, storage facilities, steriliser units, necessary licenses, and quality control measures. You will also need a distribution network for the delivery and installation of these dispensers.
- UV Disinfection System: Select a UV disinfection system for your business. This system delivers a sufficient dose of UV to kill microorganisms. Consider the water quality and flow rate when choosing a UV disinfection system.
- Electronic Doser for Alum and Chlorine: An electronic doser for alum and chlorine allows automated and precise dosing of these chemicals. It ensures proper water treatment according to the relevant quality standards and helps optimise chemical usage while minimising waste.
- Water Filling Machine: Once the water is treated and ready for consumption, you must fill it in different sizes of bottles and containers. For that purpose, you will need a water filling machine.
- Bottle Wrapping Machine: A bottle wrapping machine is an important packaging equipment that wraps bottles with a shrink film. It applies heat to the shrink film to tightly conform the bottle, creating a protective seal around the container.
- PET Bottle Blower Machine: A PET bottle blower machine creates plastic bottles from Polyethylene Terephthalate (PET). It heats a preformed plastic tube and inflates it with air to form an appropriate bottle shape.
| Machinery | Price |
|---|---|
| Storage Tank | Rs 7,000 – Rs 10,000 |
| Treatment Tank | Rs 90,000 – Rs 3 Lakh |
| RO System | Rs 70,000 – Rs 1.5 Lakh |
| Sand Filter | Rs 45,000 – Rs 1 Lakh |
| Activated Carbon Filter | Rs 25,000 – Rs 70,000 |
| Chlorination Tanks | Rs 10,000 – Rs 50,000 |
| Micron Filter | Rs 4,000 – Rs 20,000 |
| Ozone Generator | Rs 20,000 – Rs 70,000 |
| Water Dispenser and steriliser | Rs 10,000 – Rs 20,000 |
| UV Disinfection System | Rs 50,000 – Rs 80,000 |
| Electronic doser for alum and chlorine | Rs 20,000 – Rs 80,000 |
| Water Filling Machine | Rs 2 Lakh – Rs 15 Lakh |
| Bottle Wrapping Machine | Rs 1.5 Lakh – Rs 3 Lakh |
| PET bottle blower machine | Rs 1.5 Lakh – Rs 4 Lakh |
Benefits of Starting a Water Plant Business in India
Here are a few benefits of starting a mineral water plant business in India:
- High Business Demand: Water plant business has minimal risk, as water is a life’s necessity and its demand never decreases.
- Ample Profit Margin: Water, the primary raw material for the business, is abundantly available from various natural and manmade sources at a meagre cost. You can even get it for free by drilling a borehole in your bottling plant. However, conduct a water analysis to ensure it is safe and clean for consumption. The bottles and containers are also available for cheap, leaving you with a high-profit margin.
- Easy Business Entry: Setting up a small-scale mineral water plant business does not require much investment. Therefore, it offers an easy business entry even with moderate capital.
Also Read: Top 10 Business Ideas Under 1 Lakh
Documents Required for Water Plant Business in India
To start a water plant business in India, you will need the following documents:
- FSSAI license
- ISI (BIS) certificate
- Pollution certificate
- Pest control certification
- Medical certificates for workers
- Land lease agreement
- Water test report from a certified lab
- List of machinery and equipment
- Proof of business registration, such as a partnership deed or certificate of incorporation
- Medical certificates for workers
- NOC from Panchayat/ Municipality
- Detailed business plan outlining the marketing strategy, operations, and financial projections
Cost to Start a Water Plant Business in India
The water plant business cost may range from Rs 15 to 75 Lakh, based on the scale of operation. Here is an idea of the key cost components:
| Costs | Components |
|---|---|
| Land or Rental Costs | Depending on the plant location and size |
| Machinery Costs | RO systems, bottling machines, purification equipment, etc., based on the plant’s production capacity |
| Building Setup | Suitable facility for the machinery and operations |
| Licensing Fees | Necessary certifications and permits for processing and distributing water |
| Raw Material Costs | Cost to acquire raw water sources |
| Packaging Materials | Bottles, labels, caps |
How Does Business Loan Help You Start a Water Plant Business?
A Business Loan is extremely helpful in your water plant business. Here is how it helps:
- Ample loan amount of up to Rs 40 Lakh
- Competitive interest rates
- Flexible repayment terms of up to 60 months
- No minimum turnover requirements
- No collateral, guarantor, or security required
- 100% digital application for easy and quick approval
Also Read: 10 Best Business Ideas Under 5 Lakh in India
How to Apply for a Business Loan for a Water Plant Business?
Follow these steps to apply for a Business Loan at Hero FinCorp:
- Visit the Hero FinCorp website and go to the Business Loan application page.
- Fill out the necessary fields and upload the relevant documents.
- Enter the required loan amount and select a tenure.
- You will receive a reference number.
- Cater to the queries of a customer representative.
- You will receive a loan offer with the sanctioned loan amount and interest rate.
- Once you accept the loan offer, the disbursal will take place directly to your bank account.
Conclusion
Setting up a mineral water plant business is a lucrative business idea. Follow this guide to establish your business and achieve success as it grows. If you need additional financial support, borrow a Business Loan from Hero FinCorp at reasonable interest rates and flexible repayment terms. With hard work and dedication, you can turn your business into a success without financial shortfalls.
Frequently Asked Questions
1. Is a water plant business profitable?
A water plant is a profitable business due to low investment, high demand, and high scalability.
2. What is the cost of a water licence in India?
The cost of a water license and ISI (BIS) certification ranges from Rs 50,000 to Rs 1 Lakh.
3. How much land is required for a mineral water plant?
Typically, a mineral water plant business requires land of around 1000 square feet for machinery, storage, and processing.
4. What is a water tax in India?
Water tax is a tax the Indian municipal corporations levy on water supply.
5. How much investment is needed to start a water plant?
The water plant business cost ranges from Rs 15 to 75 Lakh, depending on its scale and size.
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