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Packaged Drinking Water
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Production Capacity:
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:
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45 lakh bottles of 1L capacity/annum
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Uploaded on
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April 2009 |
Product and its Applications
Most of the water borne diseases emanate
from unclean water. Packaged drinking water ensures safe,
clean, potable water for human consumption.
2.0 Market Potential
Though a large number of manufacturers
have recently taken up production of packaged drinking water,
yet there exists a wide gap between demand and supply. A number
of units can be set up in different parts of the country to
meet the local demand in institutions, hotels, restaurants,
offices, tourists, households and individuals.
3.0 Basis and Presumption
a) The unit will work for 300 days per
annum on 3 shifts basis.
b) The unit can achieve its full capacity
utilization during the 2nd year of operation.
c) The wages for skilled workers are taken
as per prevailing rates in this type of industry.
d) Interest rate for total capital investment
is calculated @ 12% per annum.
e) The entrepreneur is expected to raise
20-25% of the capital as margin money.
f) The unit would construct its own building.
g) Costs of machinery and equipment are
based on average prices of machinery manufacturers.
4.0 IMPLEMENTATION SCHEDULE
Project implementation will take a period
of 8 months. Break-up of the activities and relative time
for each activity is shown below:
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Scheme preparation and approval
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:
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01 month
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SSI provisional registration
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:
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1-2 months
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Sanction of financial supports etc
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:
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2-5 months
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Installation of machinery and power
connection
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:
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6-8 months
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Trial run and production
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:
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01 month
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5.0 Technical
Aspects
5.1 Location
The plant can be located at any suitable
place where availability of clean water, power, PET bottles
and market access is ensured.
5.2 Process of Manufacture
The process consists of following steps:
5.3 Quality
Control and Standards: As per BIS requirements
6.0 Pollution Control
There is no major pollution problem associated
with this industry except for disposal of waste water which
should be managed appropriately. The entrepreneurs are advised
to take “No Objection Certificate” from the State Pollution
Control Board.
7.0 Energy Conservation
Suitable measures shall be taken to conserve
electricity.
8.0 Production
Capacity
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Quantity
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45 lakh litre/annum (15,000 L/day)
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Installed capacity
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20,000 L/day
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Optimum capacity utilization
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70%
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Working days
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300/annum (3 shifts)
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Manpower
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17
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Utilities
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Motive Power
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40 kW
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Water
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25 kL/day
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9.0 Financial
Aspects
9.1 Fixed Capital
9.1.1 Land &
Building
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Particulars
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Amount (Rs. lakh)
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Land 2000 m 2
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02.25
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Built up area 700 m 2
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42.75
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Total cost of land and building
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45.00
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9.1.2 Machinery and Equipment
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Description
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Amount (Rs. lakh)
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UF based purification system (Sand
filter, chlorination unit, UF membranes, sterilisation
unit, SS silverisation unit, skid, electronic doser,
ozone generator, water collection tanks, Quality control
laboratory, deep bore well, delivery van, PC
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:
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42.00
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Erection & electrification of
machinery & equipment @10% cost
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:
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04.20
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Office furniture & fixtures
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:
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02.80
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Total
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:
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49.00
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9.1.3 Pre-operative Expenses
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Consultancy fee, project report,
deposits with electricity department etc
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05.00 (Rs. lakh)
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9.1.4 Total Fixed Capital
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(9.1.1+9.1.2+9.1.3)
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99.00 (Rs. lakh)
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9.2 Recurring
expenses per annum
9.2.1 Personnel
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Designation
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No.
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Salary Per month
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Amount (Rs. lakh)
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Factory Manager
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1
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13,000
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01,56
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Production Manager/Chemist
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1
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09,000
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01.08
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Supervisory staff
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4
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07,000
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03.36
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Office Assistant
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2
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05,000
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01.20
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Skilled workers
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4
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03,750
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01.80
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Unskilled workers
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5
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03,000
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01.80
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10.80
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Perquisites @15 %
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01.62
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Total
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17
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12.42
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9.2.2 Raw Material including packaging
materials
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Particulars
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Qty
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Rate (Rs.)
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Amount (Rs. lakh)
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Pet bottles 1L size including caps,
labels
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45 lakh
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3.80 each
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171.00
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Chemicals
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LS
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LS
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008.00
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Corrugated boxes
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1,88,000/24
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23
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043.24
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Total
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222.24
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9.2.3 Utilities
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Particulars
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Amount (Rs. lakh)
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Power 140,000 kW
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06.10
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Water 25 kL/day
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00.40
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Total
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06.50
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9.2.4 Other Contingent Expenses
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Particulars
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Amount (Rs. lakh)
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Repairs and maintenance @10%
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04.90
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Consumables & spares, others
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01.90
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Transport & travel
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00.70
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Publicity, postage, telephone
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00.24
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Insurance @1%
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00.90
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Total
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08.64
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9.2.5 Total Recurring Expenditure
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(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4)
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241.80 (Rs. lakh)
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9.3 Working Capital
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Recurring expenses for 3 months
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60.45 (Rs. lakh)
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9.4 Total Capital Investment
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Fixed capital (Refer 9.1.4)
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099.00 (Rs. lakh)
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Working capital (Refer 9.3)
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060.45
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Total
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159.45
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10.0 Financial Analysis
| 10.1
Cost of Production (per annum) |
Amount
(Rs. lakh) |
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Recurring expenses (Refer 9.2.5)
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241.80
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Depreciation on building @ 5%
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002.18
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Depreciation on machinery @10%
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004.62
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Depreciation on furniture @ 20%
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000.56
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Interest on Capital Investment @
12%
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019.14
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Total
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268.30
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10.2 Sale Proceeds
/ Annual turnover
10.2 Sale Proceeds
(Turnover) per year
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Item
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Qty
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Rate (Rs.)
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Amount (Rs. lakh)
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Packaged drinking water in PET bottles
cap. 1L, packed in cartons of 24 bottles each
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45 lakh bottles
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7.00
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315.00
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10.3 Net Profit per year
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=
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Sales – Cost of production
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=
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315 – 268.30
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=
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Rs. 46.70 lakh
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10.4 Net Profit Ratio
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=
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Net profit X 100
---------------------------
Sales
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=
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46.70X 100
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315
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=
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14.8 %
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10.5 Rate of
Return on Investment
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=
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Net profit X 100
--------------------------
Capital Investment
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=
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46.70X 100
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159.45
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=
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29.3%
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10.6 Annual Fixed Cost
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Amount (Rs. Lakh)
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All depreciation
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07.36
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Interest
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19.14
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40% of salary, wages, utility, contingency
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11.03
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Insurance
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00.90
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Total
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38.43
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10.7 Break even Point
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=
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Annual Fixed Cost X 100
-----------------------------------
Annual Fixed Cost + Profit
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=
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38.43 X 100
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38.43 +46.70
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=
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45.1%
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11.0 Addresses of Machinery and Equipment
Suppliers
Water Treatment Equipments, Pune
26/6, Gururaj Housing Society, Apte Colony, Bhosari
Pune - 411 039, Maharashtra, India
Email : contact@watertreatmentindia.net
, sales@watertreatmentindia.net
Water treatments Expert Inc.
5, Main Road , Khichripur, Opposite Reliance Fresh,
Delhi-11009
Email:wtexpert@gmail.com
Watrion Water and Filter Engg. Pvt. Ltd.
1, Harsivan Apartment, Ground Floor
(Behind Canara Bank),West J.P.Road,
Andheri (West),P.B.No. 7372
Mumbai – 400 059
Sonalifabs
71, Biren Roy Road (West)
Kolkata – 700 061
Enviro Tech Utility,
32A, Main Patel Nagar Road ,
Opposite Wings Show Room, West Patel Nagar
New Delhi – 110 008
Rital Agencies
55 III Main Road , Gandhi Nagar,
Chennai – 600 020
Ion Exchange India Ltd.
Ticcon House, Dr. E.Houses Road , Mahalaxmi,
Mumbai – 400 011
Alpha Engineering
158, Pocket E-20, Sector-II,Rohini,
Delhi – 110 085
Contact for
more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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