Packaged Drinking Water
| Quality and Standards |
As per BIS specifications |
| Production Capacity |
45 lakh bottles of 1L capacity/annum |
| Uploaded on |
October 2007 |
1.0 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 North Eastern Region to meet the local demand in institutions, hotels, restaurants, offices, tourist and household.
3.0 Basis and Presumptions
- The unit will work for 300 days per annum on single shift basis.
- The unit can achieve its full capacity utilization during the 2nd year of operation.
- The wages for skilled workers are taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit would construct its own building.
- 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
| Scheme preparation and approval |
01 month |
| SSI provisional registration |
1-2 months |
| Sanction of financial supports etc. |
2-5 months |
| Installation of machinery and power connection |
6-8 months |
| Trial run and production |
01 month |
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 flow chart of the process is as follows
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
| Quantity |
4 5 lak h litre/annu m (15,00 0 L/day) |
| Installed capacity |
20,00 0 L/day |
| Optimum capacity utilization |
70% |
| Working days |
300/annu m ( 3 shifts) |
| Manpower |
18 |
| Utilities |
|
| Motive Power |
40 kW |
| Water |
25 kL/day |
9.0 Financial Aspects
9.1 Fixed Capital
| Land 2000 sq.m. |
01.50 |
| Built up Area 700 sq . m. |
24.50 |
| Total cost of Land and Building |
26.00 |
9.1. 2 Machinery and Equipment
Description |
Amount (Rs. lakh) |
| UF based purification system (Sand filter, chlorination unit , UF membranes, sterlisation unit , SS silverisatio nunit, skid, electronic doser, ozone generator, water collection tanks, Quality control laboratory, deep borewell, delivera y van |
28.00 |
| Erection and electrification @ 10% of machinery cost |
2.80 |
| Office furniture & fixtures |
1.20 |
| Total |
32.00 |
9.1.3 Pre-operative Expenses
| Consultancy fee, project report, deposits with electricity department etc. |
3.00 |
| 9.1. 4 T otal Fixe d Capital (9.1.1+9.1.2+9.1.3) |
61.00 |
9.2 Recurring expenses per annum
9.2.1 Personnel
Designation |
Nos. |
Salary Per month |
Amount(Rs.lakh) |
| Factory Manager |
1 |
6,000 |
0.72 |
| Production Manager/Chemist |
1 |
5,000 |
0.60 |
| Supervisory staff |
6 |
4,000 |
2.88 |
| Office Assistant |
2 |
3,500 |
0.84 |
| Skilled workers |
4 |
2,500 |
1.20 |
| Unskilled workers |
5 |
2,000 |
1.20 |
| Total |
|
|
7.44 |
| Perquisites @ 10% |
|
|
0.76 |
| Total |
18 |
|
8.20 |
9.2.2 Raw Material including packaging materials
Particulars |
Qty.(MT) |
Rate |
Amount (Rs.lakh) |
| Pet bottles including caps, labels, 1L size |
45 lakh |
3.60 each |
162.00 |
| Chemicals |
-LS- |
-LS- |
006.00 |
| Corrugated boxes bottles |
1,88,000 |
Rs . 20/24 |
037.60 |
| Total |
|
|
205.60 |
9.2. 3 Utilities
Description |
Amount (Rs. lakh) |
| Power 180,000 kW |
4.92 |
| Water 25 kL/day |
0.28 |
| Total |
5.20 |
9.2.4 Other Contingent Expenses
Description |
Amount (Rs. lakh) |
| Repairs and maintenance@10% |
3.20 |
| Consumables & spares |
1.20 |
| Transport & Travel |
0.40 |
| Publicity |
0.05 |
| Postage & stationery |
0.08 |
| Telephone |
0.13 |
| Insurance |
0.44 |
| Total |
5.50 |
9.2.5 Total Recurring Expenditure
| (9.2.1+9.2.2+9.2.3+9.2.4) |
224.50 |
| (9. 3) Working Capital |
| Recurring Expenditure for 3 months |
56.13 |
9.4 Total Capital Investment
| |
Amount (Rs. lakh) |
| Fixed capital (Refer 9.1.4) |
61.00 |
| Working capital (Refer 9.3) |
56.13 |
| Total |
117.13 |
10.0 Financial Analysis
10.1 Cost of Production (per annum)
Description |
Amount (Rs. lakh) |
| Recurring expenses (Refer 9.2.5) |
224.50 |
| Depreciation on building @5% |
1.23 |
| Depreciation on machinery @10% |
3.08 |
| Depreciation on furniture @20% |
0.19 |
| Interest on Capital Investment @12% |
14.00 |
| Total |
243.00 |
10.2 Sale Proceeds / Annual turnover
Item |
Qt y . (MT) |
Rate per bottle |
Amount (Rs. lakh) |
| Sale of packaged drinking Water in PET bottles cap. 1L, packed in cartons of 24 bottles each |
45 lakh |
6.0 0 |
270.00 |
| Total |
|
|
270.00 |
10.3 Net Profit per year
| |
= Sales - Cost of production |
| |
= 270 - 243 |
| |
= Rs. 27 lakh |
10.4 Net Profit Ratio
| |
Net profit x 100 |
| |
Sales |
| |
27X 100 |
| |
270 |
| |
= 10% |
10.5 Rate of Return on Investment
| |
Net profit x 100 |
| |
Capital Investment |
| |
27X 100 |
| |
117.13 |
| |
= 23% |
10.6 Annual Fixed Cost
| |
Amount (Rs. Lakh) |
| Al l depreciation |
4.50 |
| Interest |
14.00 |
| 40% of salary , wages, utility , contingency |
7.56 |
| Insurance |
0.44 |
| Total |
26.50 |
10.7 Break even Point
| |
Annual Fixed Cost x100 |
| |
Annual Fixed Cost + Profit |
| |
26.50 X 100 |
| |
26.50 +27 |
| |
= 49.5% |
1 1.0 Addresses of Machinery and Equipment Suppliers
- 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
- 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
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
