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HOW THIS REPORT IS PREPARED

PROCEDURE

The Procedure of our Study mainly involved around the sample survey and detailed study of
components related to the packaged drinking water supply.
The main information regarding Operations and Production Process, Plant Location and Layout,
Planning involved in Production, Knowledge about the different Departments and the
Distribution Network.
Also certain information such as About Bottling plants and the Packaged Drinking Water
industry was obtained from the website.

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DEMAND OF WATER WOULD NEVER GO DOWN & WATER WOULD


NEVER BE OUT OF BUSINESS

Packaged Drinking Water Industry


Water everywhere, not a CLEAN drop to drink! Who would have thought that there will be a
day when sanitation of available water would be more of a concern than availability of water
itself? Hygiene is of great concern to everyone today, and this is evident with the surging rise in
the consumption of packaged/bottled water. India has 16 percent of the world's population, 2.5
percent of the land mass and 4 percent of the world's water resources. These limited water
resources are depleting rapidly while the demands on them are increasing. Drinking water
supplies in many parts of India are intermittent. Transmission and distribution networks for
water are generally old and badly maintained, and as a result, are deteriorating. India is one of
the biggest and most attractive water markets in the world. The boom time for Indian bottled
water industry is to continue- more so because the economics are sound, the bottom line is
attractive and the Indian government hasnt planned well for utilization of the nation's water
resources. Corporate control over water and water distribution in India is growing rapidly: the
packaged water business is worth $250 million. Around 1,200 bottling plants and 100 brands of
packaged water across the country are battling over the market. Most multi-national (MNC)
companies view India as the next big market with a lot of potential and growth possibility.
Several MNCs are waiting in the wings to expand a $ 287 billion global water market into India.
There is a huge market being exploited by the packaged water industry, and it's growing at 40%
per annum. With over a thousand bottled water producers, the Indian bottled water industry is
big by even international standards. There are more than 200 brands, nearly 80 per cent of
which are local. Most of the small-scale producers sell non-branded products and serve small
markets.

From being confined to the uppermost echelons of society, packaged water has now become a
commonplace commodity and almost a necessity in metros. After witnessing historic growth in
recent years, it has become a Rs 3,000-crore industry, one that is slated to only post healthy
growth rates to become a Rs 10,000-crore business in just three years, The bulk water industry,
or water in 12-, 20- and 25-litre packages, has also witnessed a parallel growth of Rs 700-1,000
crore. Basically, the market can be divided into two segments the retail consumer market
where the pack sizes are 500 ml, one litre, 1.2/1.5/2-litre and five-liter, and the household
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institutional market, where the pack size is usually are 20- or 25-litre.
The Bureau of Indian Standards (BIS) is the governing authority on all quality and
production regulations related to natural mineral water as well as packaged drinking water. Even

Future Growth Prospects for the Industry:


The industrys phenomenal growth in recent years can be attributed to rising incidence of waterborne diseases, improper municipal supplies, and evolved health consciousness of people as well
as globalization, which has brought in tremendous tourist inflow.
The industry growth rate is 40-50 per cent a year, but India is still behind countries such as
Indonesia, Malaysia and Singapore, where the industry is already worth Rs 15,000-20,000 crore.
These countries have much smaller population but similar climatic conditions. If we consider
these data as a base for future potential, then the growth prospects of Packaged Drinking Water
in India is high. The Indian market currently has more than 2,000 players, the main brands
controlling the market are Bottling Plant International Pvt. Ltd., Himalaya Mountain Water,
Pepsis Aquafina, Cokes Kinley, Kingfisher, SAB Millers Royal Challenge, besides local
players such as Sabol, Manikchand, Rail Neer, Attharva.
With better knowledge of packaged drinking water, brands such as Bottling Plant Mountain
Water, Evian of France, Himalayan of North India and Blue Mont from the South are trying to
create a niche in the premium water segment of mountain spring water, which comes under the
natural mineral water specifications of BIS.

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ABOUT BOTTLING INDUSTRY IN INDIA:


Mineral Water under the name 'Bottling Plant' was first launched in Mumbai in glass bottles in
two varieties - bubbly & still in 1965 by Bottling Plant Ltd., a company of Italian origin. This
company was started by Signor Felice Bottling Plant who first brought the idea of selling bottled
water in India.
Parle bought over Bottling Plant (India) Ltd. In 1969 & started bottling Mineral water in glass
bottles under the brand name 'Bottling Plant'. Later Parle switched over to PVC non-returnable
bottles & finally advanced to PET containers.

Since 1995 Mr. Ramesh J. Chauhan has started expanding Bottling Plant operations substantially
and the turnover has multiplied more than 20 times over a period of 10 years and the average
growth rate has been around 40% over this period. Presently Bottling Plant has 8 plants & 11
franchisees all over India. Their presence covers the entire span of India. The company is
planning to set up four more plants. Bottling Plant commands a 65% market share of the
organized market. Overwhelming popularity of 'Bottling Plant' & the fact that it has pioneered
bottled water in India, has made it synonymous to Mineral water and has made it a household
name. When you think of bottled water, you think Bottling Plant.

Product Range
Bottled Water is packaged in:
Non-Returnable Packs-

250ml cups
250ml bottles
500ml
1L
1.5L
2L
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Returnable Packs

5L
20L

PLANT LOCATION
Location is the most important factor to be considered while setting up any manufacturing plant.
It plays a vital role in deciding the efficiency and smooth running of the factory. On the other
hand, a bad plant location may create many obstacles in the manufacturing process. Hence any
company attaches a lot of importance to selection of an ideal plant location depending on its line
of business.

SO WHAT IS AN IDEAL PLANT LOCATION?


There are many factors to be considered while deciding the location. It varies from plant to plant
depending on the sort of unit they are manufacturing. However there are certain universal
guidelines which have to be taken into consideration. The factors which we took into
consideration are:-

1) Availability of Raw Material :a)

The main raw material for any bottling plant is water. The location that has been
selected has continuous raw water supplied for 285 MLD Water supply
scheme of STEM Water Distribution & Infrastructure Co. Pvt. Ltd., Thanes
Temghar WTP on site which is enough to supply water for the whole year. Hence
the company does not rely much on Bore Well or any other source for its water.
The raw water lifted by the STEM Water distribution and Infrastructure Company
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Pvt. Ltd. From a perennial source i.e. Ullhas river at Shahad located in Kalyan
city.
b)

The other raw material it requires is HDPE, LLDPE for the production of caps
and PET for the production of bottles. The granules of these are easily available.
The polymer manufacturing companies i.e. CHEMCO and SNJ HYDERABAD
have distributors in Thane, Bhiwandi and the CHEMCO having their
manufacturing unit at Wada (Industrial Zone in Thane district).

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2) Nearness to the market :MMR is one of the biggest Business and Residential Hub in Maharashtra and the market
in MMR is very large due to the fact that people in cities of MMR are more hygiene
conscious. The location of factory site is located right next to the Eastern express
highway therefore making it easier for it to transport the finished goods to the different
parts of the MMR as well as out station.

3) Availability of power :The location selected for the bottling plant is next to the Torrent Power supplys
substation and the existing WTP of STEM having continues Power supply for their
WTP and Pure Water Pumping Station therefore there is abundant power available.
STEM Water Distribution & Infrastructure Company Pvt. Ltd. gets its power from
Torrent Power; they have constructed a substation to meet the needs of the WTP and
Pure water pumping.

4) Transport facility :The location of Plant is in Bhiwandi Town is well connected to major cities of MMR
with round the clock transportation and major transporters available in the vicinity of
the located plant. The services of the transporter can be taken on initially and after
establishment of the brand of STEM the same can look for purchasing their own vehicle
for transport the finished goods and semi finished goods within the MMR as well as
out of the Maharashtra state.

5) Suitability of Climate :The location selected is located in Gram Panchyat Pimplas which is in the temperate
zone (in MMR region or near to the Mumbai). Therefore, the temperature is moderate
and this area being near the coast gets high rainfall which is essential for the year
round supply of water.

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STEM Water distribution & infrastructure Company Pvt. Ltd. is located in the city of
Bhiwandi- Which is 40 km off of a metropolitan city - Mumbai. It has abundant
skilled, semi-skilled and manual or unskilled labour.

PLANT LAYOUT
The plant Layout and detailed layout is attached as Drawings.

ANALYSIS OF THE LAYOUT

The factory has wide doors leading to a raised platform. There are small cranes which
are used to pick up the lot of raw materials such as pre-forms and caps which are
brought by trucks. They are then stored in an accessible place so that they can be taken
for further processing.
The plant considered while is completely automatic for the packaging on the 250 ml
glass to 2 liter bottles, the 5 liter and 20 liter bottle filling is semi automatic.
In order to facilitate the transporting of the boxes from one plant to another there are
medium trolleys which have to be manually pushed. Therefore sloped entrance and exits
are provided.
The warehouse where the finished goods are stored is located right next to the vehicle
pool in order to reduce the time wasted in transporting to the trucks.

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INFLUENCE OF CERTAIN FACTORS ON PLANT


LAYOUT
1) TYPE OF INDUSTRY:The unique manufacturing processes and the type of industry have a significant
influence on the layout of the plant. The different types of industries are as follows:1) Synthetic
2) Analytical
3) Conditioning
4) Extractive
Packaged bottled drinking water falls under the category of conditioning industry. A
Conditioning industry is an industry which is involved in the change of form or the
physical properties of a substance; in this case water.
Each of the above industries can be further classified into:1) Intermittent industry
2) Continuous industry
Packaged bottled drinking water falls under the category of a Continuous industry. A
Continuous industry is an industry that manufactures a product of a standard size.

2) SIZE AND TERRAIN :The size and the terrain of the site determine the types of buildings which in turn,
influence the layout of the plant.
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The Plant is located on a large plot (partly utilized for 1 Lakh liter initially and same can
be expanded on the remaining area available. Total size of plot including road is 28m X
180 m). The Plot at present is occupied the storage Godowns, which is to be demolished
and the same is utilized for the Bottling plant unit. The present Godown is to be shifted
on the plot made available after demolishing of existing CCT, Sump and Pumphouse.

3) MACHINERY :The size and type of the machinery to be installed also influences the plant layout. The
fixed and stationary parts of the machines should also be taken into consideration while
designing the plant layout.
In Bottling plant, the following factors were taken into consideration while installing the
machinery:1) There is enough space for the repair and maintenance of the machinery.
2) The machines are placed in such a way that there is enough place for moving and
relocation of the machines.
3) There is enough maneuverability for the workers to move about the machines and
work comfortably.

4) Workers :The layout of the plant should be such that it fulfills the requirements of the workers.
Also the fact whether the employees have a job which requires them to sit in one place or
move about should be taken into consideration.
In the Bottling plant factory, the workers have the following facilities:1) The plant is on the Eastern Express Highway and is also very close to the 500 m off of
Sai Baba Mandir bus stop of MSRTC and Other Corporations Buses. Also the Share
Auto-Rickshaw is available from Kalyan Station. This makes it very convenient for the
workers to commune.
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2) The Washrooms for men and women workers are also conveniently located are kept
in hygienic conditions

PRINCIPLES OF PLANT LAYOUT

We have seen that certain factors influence the layout of the plant. Along with these factors, there
are certain Principles which act as guidelines for the layout engineer while designing the plant
layout. They are as follows:1) The principle of minimum travel
2) The principle of sequence
3) The principle of usage.
4) The principle of compactness
5) The principle of safety and satisfaction
6) The principle of flexibility
7) The principle of minimum investment

Out of these the Bottling Plant follows 4 Principles: The Principle Of Minimum Travel :This Principle states that there should be minimum distance for labor and materials to
travel between operations so as to minimize the cost of Materials Handling.
The Plant has installed its Machines in such a way that right from the stage of raw
materials to the final finished product there is very little distance for a unit to travel. This
saves time and cost for plant.

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The Principle Of Sequence :Machinery and operations should be arranged in a sequential order. This principle is best
achieved in product layout, and efforts should be made to have it adopted in the process
layout.
In the plant right from producing the caps and bottles pre-forms to treating the water to
making the bottles and filling and capping it, all the machines are arranged in a sequence
therefore saving time and cost on material handling equipment.

The Principle of Usage:Machinery and operations arranged so that sequential order along-with the Usage of
available plot area considering better utilization with future expansion to enhance the
capacity up-to 20 Lakh bottles per day in single shift.

The principle of safety and satisfaction :Machinery and operations arranged so the safety, hygiene and the feel of satisfaction to
the plant operator and labour shall be there. The consideration for the layout including
free and convenient movement of operators and staff of the plant. Consideration of
hygiene for high quality standards mentioned industry.

PLANNING INVOLVED IN PRODUCTION


PROCESS
1) Material :There is no output possible without the basic Raw Materials. Materials can account for
almost 80% of the output. Hence Materials are very important in planning for any production.
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The Materials which are required by Plant are:

Untreated Water
HDPE
LLDPE
PET
Recycled PET Granules
Cartons
Stickers

2) Procedure :This step involves designing the most compatible process of production with a given set of
circumstances and facilities. This starts right from the designing of the plant to the actual
production.
The method for producing packaged drinking water starts with the production of bottles and
caps. After that the semi finished products are transported from the cap and pre-forms
division to the filling division, where the caps are added to the filling machines and the preforms to the corresponding size of the bottle. These bottles are then added to the conveyor
belt to complete the process of filling the bottle automatically. After the bottle is filled to the
desired level, the bottle is automatically capped and then stickers are put on the bottle. The
price is printed through a spray gun. Then it is visually inspected and after that put into
cartons ready for delivery.

3) Machines and Equipment:The Machinery that is used for production has to be carefully selected as it can result in
higher and more efficient output at a lower cost. The following are the methods of
acquiring the machinery:1) Equipments can be purchased fresh or second hand
2) Equipment can be leased or rented
3) Equipment can be fabricated within the plant

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Machines used in Bottling Plant are as follows: Injection moulding machines for the production of pre-forms and caps.
Moulding machines for making the bottles according to the required size and shape.
Automatic fillers for the purpose cleaning and efficient filling of the bottles with
least amount of rejection.
4)

Routing :The determination of where each operation on a component part, subassembly or


assembly is to be performed results in a route for the movement of a manufacturing lot
through the factory. A generalized routing can be determined depending upon the size of
the building and is established by departments such as machine shop, assembly, finishing,
inspection and so on. A detailed routing indicates the specific work station or machine to
be used for each operation.
The route of the production process is designed in such a way that in process,
transportation is at a minimum. The plant layout is in such a way that it is easy to
transport the semi-finished product. First comes the semi finished product then it is
blown, filled and sealed, finally ready for delivery.

5) Estimating:Estimating is a special type of Forecasting. Predicting what a unit of a product will cost is
very difficult to do. Hence, many companies have Pre-planning departments to estimate
the cost of the products and the demand as well.
Bottling Plant being a 30-40 year old business and is able to estimate the demand because
of past experience. They take the help of Market Surveys and past trends to determine the
production requirements.

6) Loading and Scheduling: Bottling Plant uses both scheduling and loading help in production planning. Scheduling
refers to the preparation of a time table for various operations covering the beginning and
finishing times of various operations. Loading refers to the time gap for various work
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loads booked in advance for different products. Thus, scheduling guarantees the
observation of delivery times and loading guarantees the maximum utilization of the
available facilities.
According to the schedule of the delivery, amount to be delivered and the place they are
to be delivered, the trucks are loaded to be sent to wholesalers and retailers.

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INPUTS

CONVERSION
SUBSYSTEM

OUTPUT

Physical

STEM
Bottles

Environment
Legal
FDA, BIS,
MPCB
Technological
automatic
inj.
Mldg. m/c, auto
blow mldg. m/c.

Manufacturing
Locational Services

Market
Transportation
Competition with
Bisleri, Aquafina,
Kinley etc.
Customer Desire
50 m.l., 100 m.l.,
25 litres and low
price

Primary Resources

Exchange

Services
Wholesaler
Refill
Other Private
Services

Material: -

Water from bore wells


HDPE, LLDPE, PET.

Utility

Personnel: -

Plastics Engineering,
Production Managers.

Capital Assets: Auto Filling Machine,


Blow
moulding
machine,
recycling
machine

Control Sub-system

Sealed bottle, FDA, Quality


Control

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BOTTLING PLANTS PRODUCTION


SYSTEM MODEL
INPUTS
Environment
1) Legal : Bottling Plant being a company involved in selling water which is fit for consumption,
comes under the FDA. It also follows the standards of BIS. Therefore it maintains its
quality and public perceive the image of being 100% safe.

2) Technological : Bottling Plant believes in keeping up with times and they are trying constantly to increase
their market share. This is the reason Bottling Plant has automatic Injection Moulding
Machine in order to increase their production capacity 3 folds. Bottling Plant considered
using has 1 automatic Blow Moulding Machines.

Market
1)

Competition : Bottling Plant is now mostly established players like Bisleri, parle agro also recently
launched companies like Pepsi and Coco cola have entered the market to give tough
competition to Bottling Plant by introducing brands like kinley and Aquafina. Also the
low cost local brands available whose market share or markets where limited.
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2)

Customer desire:-

The customers nowadays getting more hygienic prone and health conscious. The packaged
drinking water market is increasing at rapid rate considering the Tour and Travel industry
growth.

3)

More options: -

Bottling industry serves the packaged drinking water ranging from 300ml to 20 litres.

Primary resources: 1)

Material: The raw water is obtained from bore wells. The bottles are made from polymers such as
HDPE, LLDPE and PET.

2)

Personnel: Bottling Plant requires mostly skilled and semi skilled labourers. The skilled labourers
include production and plastic engineers.

3)

Capital assets: Bottling Plant required, water treatment plant (as per water to BIS 14543:2004) injection
moulding machines, automatic blow moulding machines and

semi automatic blow

moulding machines ( 5 liter to 20 liter).

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Conversion Subsystem
1)

Physical: Bottling Plant is considered to be a manufacturing unit as it manufactures the semi finished
product i.e. bottles and caps and also produces the finished products.

2)

Exchange services: The distribution network of Bottling Plant is maintained by its distributors and
wholesalers. There is requirement of the setup of Kiosk at respective holding Municipal
Corporations. The Kiosk serving population mostly small or consumers and households as
according to the concept of Delhi Jal Boards Jal Suvidha Khendras. To supply to big
corporates they have their own distribution network.

3)

Outputs: The final output of whole manufacturing process is we get clean pure drinking water in
bottles of different sizes according to the needs of the consumers. The consumers can serve
from 300 ml Glass jar upto 20 Liter bottle Jar.

Quality Control and Quality Standards


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Water Bottling Plant follows and conforms to the standards set by the Bureau of Indian Standards
(BIS). Tests prescribed by the BIS are conducted daily and weekly on the Bottling Plant premises
while quarterly, half-yearly and even yearly tests are conducted in a separate laboratory.
REQUIREMENTS TO BE COMPLIED WITH BY THE APPLICANT OF PACKAGED
DRINKING WATER FOR GRANT OF BIS LICENCE ACCORDING TO IS 14543:2004
A.

GENERAL REQUIREMENTS
General requirements for grant of BIS License

B.

PRODUCT SPECIFIC REQUIREMENTS


(FOR PACKAGED DRINKING WATER)
1. List of Test Equipments, Glass wares & Chemicals
2. List of BIS approved outside lab for the Product Water, Containers (including lids/caps)
3. Details of samples of the product/containers to be drawn during BIS visits.
4. Acceptance of Marking Fee
5. Acceptance of Scheme of Testing and Inspection (STI)
6. Guidelines for assessment of Hygienic conditions with Explanatory notes for guidance
7. List of Indian Standards which a Packaged Drinking Water Industry must have in original
8. Undertaking for getting the samples tested as per STI frequency from BIS approved/NABL
accredited outside lab.
9. Consent letter from concerned outside lab for testing of sample (Ref. Sr. No. 8).
10. Copy of the appointment letter, qualification certificates for Chemist and Microbiologist
11. No Objection Certificate (NOC) from the concerned office of Central Ground Water
Authority (if applicable in the state).

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12. Detailed Manufacturing process indicating treatment for disinfection along with Process
Flow Chart. Clause 3.2 of IS 14543:2004 specifies various processes for
manufacturing Packaged Drinking Water for guidance only
13. Copies of Medical Examination Reports of the employees engaged in washing/filling of
the product for any communicable/skin diseases and fitness to work in a food
industry.
14. Details about the arrangements of pest control treatment such as an agreement/contract
with the agency. Also details of Cleaning in Place (CIP)
15. Declaration of Shelf-life of the product separately for each type of container (e.g. 1littre,
2 litre, 20 litre etc.).
16. Undertaking Regarding clause 6 (Packing) of IS 14543:2004 and clause 7.2 of IS
14543:2004 (Labelling Prohibitions)
17. Obtain request letter from BIS for getting the sample tested for Radio Active Residues,
from BARC before submitting the application and test report received from BARC is
to be submitted along with the application form.

Quality Control Measures at the Inventory level


When the raw material like performs are ordered and are subsequently delivered to the plant, a
Quality check is done physically, using a sampling formula, to ensure the quality of the goods
delivered. If they conform to the Quality Standards prescribed, then the manufacturing
department gives the go ahead and the raw material consignment is accepted, otherwise it is
rejected and is returned back to the supplier.

RAW MATERIAL
ARRIVES

SAMPLING
FORMULA USED

QUALITY CHECK
DONE

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CONSIGNMENT
ACCEPTED/REJECTED

MANUFACTURING
DEPT. DECIDES

Other Quality Control Measures

Leakages in the System: Water Bottling Plant has standards for leakages in the system, i.e. it
has consideration levels for rejection of damaged items during the production and manufacturing
process. For instance a count is kept for the number of caps, preforms and bottles rejected in the
process. If this count goes above a particular level, then the machinery is considered faulty and is
immediately serviced / repaired. Approximately 0.8% to 0.9% leakages in the system are
tolerated. On the day the cost of rejections calculated in monetary terms for the 8 hour shift.

Standards for reuse/recycling of bottles: The 20 litre bottles are cleansed and then reused.
Bottling Plant has certain standards for the reuse of these bottles. For instance the bottles are first
externally cleansed. Then jet pressure of above 1 kg is used to wash the bottles internally, first
with added disinfectant of the desired ppm level and then the bottles are rinsed with plain water.
However if the bottles do not match the parameters for reuse, then they are rejected and crushed.
A record is kept of these bottles.

Other Methods:

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The packed cartons are not placed directly on the floor of the plant, lest they get damaged
and consequently degrade the quality of the product. Also trolleys and carts are used to
transfer the cartons within the plant.
Workers in the plant are required to wear head masks to avoid contamination of the
product.
Daily pest control is undertaken to maintain a clean environment for manufacturing.
There are at least two people appointed to remove defective or damaged pieces from the
assembly line
Water wasted during the bottling process is recycled and put to use.
Bottling Plant maintains a regular sanitation and maintenance record.
Minimal human intervention is involved during the production process. If a bottle is
unnecessarily touched by human hand, the product is discarded to maintain adequate
quality.
The mineral water is ozone treated before packaging.
An expiry date is decided for the product so that the desired quality can be maintained.
Overall productivity for a day is maintained at 80% to 85%. (For the day prior to the plant
visit it was 82% productivity)
Water Bottling Plant has to follow some Quality Policy, which can be as follows:

Quality policy
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Bottling Plant commits itself to produce and market a world class product to satisfy the present
and future needs.
We will strive to train all our people and develop an obsession for quality in all aspects of work
in an organization.
We are committed to implement good manufacturing practices and to achieve continuous
improvement in the plant, process and distribution chain.
We ensure full compliance to all government regulatory norms and strictly adhere to the internal
standards of quality and hygiene.
Each and everyone in the organization is responsible for quality. The head is accountable for
implementation of the quality policy and guidance.
The quality policy is implemented uniformly across all manufacturing units. The corporate
quality Assurance will provide necessary support and guidance for up gradation of the
procedures and standards.

Production System
Mass production: Mass Production is the name given to the method of producing goods in large quantities at
low cost per unit. Mass production, although allowing lower prices, does not have to mean lowquality production. Instead, mass-produced goods are standardized by means of precisionmanufactured, interchangeable parts. The mass production process is characterized by
mechanization to achieve high volume, elaborate organization of materials flow through various
stages of manufacturing, careful supervision of quality standards, and minute division of labour.
Mass production requires mass consumption. Until recently, the only large-scale demand for
standardized, uniform products came from military organizations. The major experiments that
eventually led to mass production were first performed under the aegis of the military.
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Effects on the organization of work: The development of mass production transformed the organization of work in three important
ways:
1. Tasks were minutely subdivided and performed by unskilled workers, or at least
semiskilled workers, since much of the skill was built into the machine.
2. Manufacturing concerns grew to such size that a large hierarchy of supervisors and
managers became necessary.
3. The increasing complexity of operations required employment of a large management
staff of accountants, engineers, chemists, and, later, social psychologists, in addition to a
large distribution and sales force.

Production Process
1. Blowing :
In the blowing department the performs, obtained from the preforms department are
blown to form bottles. It is proposed to have fully automatic blowing machines which
are directly connected to the filler.
Preforms are available in various sizes according to the size of bottle.

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Bottle Sizes

Pre-form Sizes (Best option)

1 ltr

21gms

500 ml

17gms

250 ml

15gms

1.5 ltr

32 gms

2 ltr

34 gms

5 ltr

75 gms

20 ltr

710 gms

2. Filling :
The filling department is situated in a closed and a controlled environment to maintain
the hygiene. Bottles are fed by an air conveyor from the blowing unit directly into the infeed of the RFC. RFC equipment is neck run and it boasts of a mono block unit, which
means that every bottle is held by the neck automatically while being inverted, rinsed and
sprayed with ozonated water at 2 Bar pressure. After draining, the bottles are re-inverted
and transferred to the filler. At the filler these bottles are straightened up and gradually
lifted to the filling valves which open only when a bottle is placed under them. Filling is
then done systematically through gravity. The bottles are directly loaded onto the
conveyor belt, first the bottles are passed through UV light to kill the bacteria, then the
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bottles are cleaned by pure water, then the bottles are filled to the desired quantity.
The water dispenser fills the bottle till the desired level of water is filled which is checked
by a sensor.
3. Capping :
The bottles are passed to the capper from the filler through the conveyer belt. The caps
are produced in the cap department. HDPE and LLDPE which are in the form of granules
are emptied into the hopper of the injection moulding machine with a colorant and the
caps are produced of the characteristic green colour of Bottling Plant. The caps that are
produced are automatically packed into cartons. This semi finished product is transported,
after quality testing has been done, to the filling department. The bottles are passed to the
capper from the filler through the conveyer belt. Here ozonated-water rinsed caps are
screwed on the bottle with uniform torque. Since the water is ozonated all product
contact parts are of 316L grade stainless steel and the rubber parts are of EPDM.
4. Labelling:
From the capping section the bottles are directly sent to the labeling section. All Bottling
Plant bottles are labeled on a hot melt reel feed BOPP labeling machine. This machine
allows each individual bottles to be spaced out and fed to the labeling station where
precisely cut labels with a strip of hot melt glue at the leading and trailing edge, get
rolled around the bottle. These labels are fed into the machine in a roll form too.
5. Coding :
The labeled bottles are then passed to the coder. The sensor first senses the bottle and
then the price, manufacturing date, batch number are printed by spraying machine
on the bottle itself, then the bottles pass through a screen of white light where workers
manually check all the bottles for any defects. The code exactly contains Date, Time and
Quality Checkers initials.
6. Packaging :
Lastly they are packed in cartons and stored in the warehouse ready for transportation to
its destination.

28 | P a g e

All the waste bottles are separated send to the recycling department for recycling where
they are cleaned, grinded to a coarse powder which is again used in the manufacturing
process, thus reducing wastages and being environmentally friendly.

Technology
Water testing
There are 8 Physiochemistry tests shall be performed on the water:
1) pH: This test is performed to check the hydrogen ion concentration in water. It should be
neutral. The pH limit which is accepted is 6.8 to 7.2
2) TDS (Total dissolved salts)
29 | P a g e

3)
4)
5)
6)
7)
8)

Turbidity
AOT ( Adherence, odour and taste)
Visual appearance
Packaging
Level alignment
Torque test ( for capping pressure)
There is a bursting strength unit. It is to check the carton acceptance capacity. Carton
is placed and the machine is started. The capacity is checked on the meter. 6-8 is the
normal bearing capacity.
Sample size for water treatment depends on the PH level.
There is thickness meter to check the bottle thickness.
Spectrophometer to check the standards for mineral levels in the water.
Nitrate NO3 45mg/l
Nitrite NO2 0.02mg/l
Zinc Zn 5mg/l
Manganese Mn 0.1mg/l
Calcium Ca 75mgl
Magnesium Mg 30mg/l
Sulphide S - 0.05mg/l

All the different machines to the check whether bottles are blown properly or not are
BOTTLING PLANT GENERAL LAYOUT

30 | P a g e

Water Treatment Process Diagram General


31 | P a g e

WATER TREATMENT
Every drop of Bottling Plant water is purified as per international standards to ensure that
Bottling Plant experience always remains pure and satisfying for longer. The following is a brief
understanding of the water treatment process (the detailed process can be determined as per
detailed water quality assessment of the raw water):
The Raw water is to taken from the raw water rising main near Gate Number 3 and near the
proposed Backwash collection and recirculation system.
Chlorination kills micro organisms and removes organic matter.
After that the water goes through the Sand Filter where the solid wastes are removed. The
Carbon Filter removes residual chlorine & odours. The Ultraviolet chamber helps to cure the
bacteria and viruses present in water.
Reverse osmosis is similar to the membrane filtration treatment process RO (Reverse Osmosis),
however involves a diffusive mechanism so that separation efficiency is dependent on influent
solute concentration, pressure and water flux rate . It works by using pressure to force a solution
through a membrane, retaining the solute on one side and allowing the pure solvent to pass to the
other side. This is the reverse of the normal osmosis process, which is the natural movement of
solvent from an area of low solute concentration, through a membrane, to an area of high solute
concentration when no external pressure is applied. Reverse osmosis removes organic material.
Controls total dissolved solids in the water.
The water is then passed through a Silverization Chamber to give sparkle to the water.
Ozonization is a process where in Ozone gas is passed through water. It ensures water remains
bacteria free for longer life.

MRP
32 | P a g e

Objectives of MRP for Bottling Plant are:

To improve customer service by meeting the delivery schedules promised and


shortening delivery lead times.

To reduce inventory costs by reducing inventory levels

To improve plant operating efficiency by better use of resources.

In order to meet its MRP objectives, the management of Bottling Plant has scheduling plans at
yearly, quarterly, monthly and weekly levels. Depending upon the season or the requirement
there is change in materials ordered. For Example, in the months of March, April, May, i.e., the
summer season and October which is the vacation month there is a greater demand of mineral
water bottles. In other words the availability of dependant materials is managed in order to
achieve maximum efficiency

FORECAST
DEMAND

BILL OF
MATERIAL

AGGREGATE
PRODUCTION
PLAN

MRP

FIRM
ORDERS

INVENTORY
TRANSCATION

INVENTORY
STATUS
MRP System Structure

SWOT ANALYSIS
33 | P a g e

STRENGTHS:
1. First Mover Advantage: The STEM water Bottling Plant the first company in India to
enter the packaged water segment near Eastern Expressway Highway and proximity to 6
Municipal corporations. Due to this it enjoys a distinct identity. The company looking to
established initially 1 Lakh liter plant which can be expandable up to 20 Lakh liters a day.
2. Market Share: The area around have large potential for water bottling plant, considering
the development of the coming up large scale.
3. Centralized location: Bottling Plants plant is centrally located to 5 municipal
corporations in MMR Region & close to the railway station. This makes supply of
products easy. Commuting for employees is also easy.
4. High Automation: the process considered useing by Bottling Plant to purify the water is
highly automated. This results in higher levels of hygiene.
5. Raw and Pure Water on premises: The plant has avaibalility of the raw water and pure
water in premises on nominal cost providing a definitive reduction in costs.
6. Innovative Brand Positioning methods: Most of Bottling Plant at regular intervals
modifies its bottle shape & label graphics to counter imitation of the same. The shift in
label pattern & bottle from etc.,

WEAKNESS:
1. Expansion: Bottling Plant at this particular plants expansion depends upon the future
demand and market share which going to be established by STEM brand.
2. Wastage of water: the automated process water wastage is nearly 30-40% gets wasted
which is can be drained to the backwash water recirculation sump then treated.
3. Unorganized Plant Layout: The plant shall be arranged to limit the wastage of the area
available taking into consideration of the future demand and the expansion.
4. Non Homogeneity: The packaged water industry in India is unorganized & non
homogenous. According to surveys conducted the quality of water across the country for
the same brand differs.
5. International standards: The level of hygiene at proposed plant shall follow anticipated
international standards.

34 | P a g e

OPPORTUNITIES:
1. Soda water: Bottling Plant can be utilized into soda segment. It can concentrate on
expanding in the soda segment for other manufacturer. As a long term plan it can also
enter the aerated drinks segment.
2. Higher Home Consumption: due to higher standard of living & higher health
consciousness in India currently, Bottling Plant can try to increase home consumption.

THREATS:
1. Marketing Risk: STEM Water distribution and Infrastructure Company Pvt. Ltd., not
having marketing experience in any field, while the business of packaged drinking water
requires the large scale marketing to promote the product in market.
2. Operation & Maintenance:
3. High level of substitution: Packaged drinking water can easily be substituted by that of
other brands.
4. Threat from smaller players: Smaller players have good sales in non metro & non
cosmopolitan cities.
5. Threat from imitators/fakes: smaller players which imitate Bottling Plant labeling and
packaging are a huge threat especially in non metros.

Recommendations

Looking at the investment and the marketing risk involved in this venture, the most
preferable to opt for Private partnership or can be worked on PPP basis, where the risk of the

market and operation of plant will lay to the private partner.


Understanding certain technical aspects (filling, reverse osmosis, sand and carbon filtration)
relating to the production process for the present plant operating staff to know and
understand the working of such system.

35 | P a g e

The STEM with Private Partner will get the experience and its staff gets trained for the
working of plant and its operation and maintenance of such plant.

Conclusion
The report on water Bottling Plant has helped us in understanding various concepts and
applications related to Operations Management and its relevance to the organization. It also
gave us a deep insight into the fact that all these aspects are crucial to the organization.
The packaged drinking water bottle plant looks lucrative on the basis of the profit
involves, as along with profit there is huge risk of market and distribution of product in the
market is involved. The distribution involved the making of distributors and vendors for timely
supply of product to consumers as well as on time requirement of raw material.
36 | P a g e

The marketing risk with the project is high as the system is linked to particular consumer
as compared to the STEMs core business of Bulk water supply on large scale where market is
predefined and not much marketing required. While in packaged drinking water the market limits
are not defined and there are major players are there and there is going be stiff competition from
the cheap and local brands.

ANNEXURES
ANNEXURE-I
PROCEDURE FOR GRANT OF BIS LICENCE FOR DOMESTIC MANUFACTURERS
The applicant has the option to choose any of the following two procedures for grant of BIS
licence:
i) Normal Procedure In the normal procedure, the applicant is required to submit the filled in
application along with required documents and requisite fee to the nearest BIS branch office.
Subsequently, after recording of the application, a preliminary factory evaluation is carried out
by BIS officer to ascertain the capability of the applicant/manufacturer to produce goods
according to the relevant Indian Standard and to verify the availability of complete testing
37 | P a g e

facility and competent technical personnel. Samples are tested in the factory and also drawn for
independent testing. Grant of licence is considered by BIS provided the samples pass during
independent testing, preliminary evaluation is satisfactory and the applicant agrees to operate the
defined Scheme of Testing & Inspection and pay the prescribed marking fee.
ii) Simplified Procedure In the simplified procedure, applicant is required to furnish the test
report(s) of the sample(s) got tested by him in the BIS approved laboratories, along with the
application. If the test report(s) and other documents are found satisfactory, a verification visit is
carried out by BIS. The licence is granted thereafter if the verification report is found
satisfactory. The applicant also has the option to get the documents and other details as specified
in the application, certified by a Chartered Engineer and submit the same to BIS. The licence
then shall be granted after scrutiny of the documents and report submitted by Chartered
Engineer. By this procedure the licence is expected to be granted within 30 days of receipt of
application by BIS, provided all required documents are furnished and found satisfactory.
Note 1: Simplified procedure is available for all products except certain items under mandatory
certification like gas cylinders, valves, regulators, cement, etc.
Note 2: If any licence granted as per simplified procedure is cancelled in the event of failure of
verification samples, the fresh application shall only be considered as per normal procedure.
Note 3: All India first licence for any product shall be granted as per normal procedure only.
NORMAL PROCEDURE FOR GRANT OF LICENCE FOR DOMESTIC MANUFACTURERS
( updated on 21 05 2007)

1. APPLICATION
The procedure for grant of BIS Certification Marks Licence begins with the filing of application in the
prescribed Application form (FORM I) by the manufacturer desirous of obtaining the licence. A
licence is granted for varieties of products covered under a given Indian Standard. The form along with
application fee of Rs 1000 is required to be submitted to the Branch Office under whose jurisdiction

38 | P a g e

the manufacturing unit is located.


The following additional documents are required to be submitted with the application:
a) Location map of factory and factory layout
b) Documentation authenticating the premises of manufacture
c) Lists of Manufacturing machinery and testing equipments available
d) Scheme of testing and inspection in use, or any proposed to be used, together with an
undertaking to follow the Scheme approved by BIS after grant of licence
e) An undertaking to pay the prescribed marking fee from the date of grant of licence
f) An undertaking to follow all terms and condition of grant of licence and to suspend marking
with immediate effect in the event of suspension or cancellation of licence
g) A flow chart describing the process of production and inspection stages
h) Details of technical personnel available
i) Any statutory licence required for manufacturing, if applicable
2. RECORDING
2.1

On scrutiny, if the application is found complete in all respects, it is recorded and assigned an
application number. The application is acknowledged and the number is conveyed to the
applicant for future reference.

3. PRELIMINARY INSPECTION
3.1

Preliminary inspection of the unit is carried out on a mutually agreed date, within a month of
recording of application. During this inspection the firm's manufacturing capability and controls,
quality control techniques, facilities available and the technical skills of the personnel are
evaluated. Samples of products are tested and also drawn for testing in BIS or other recognized
laboratories.

3.2

Preliminary visits are charged to the applicant at the rate of Rs 4000 per day for first visit and Rs.
3000 for subsequent visits. Testing charges for the sample drawn for independent testing are
required to be paid by the applicant.

39 | P a g e

3.3

During the preliminary inspection, the Scheme of Testing and Inspection is discussed with the
applicant's management.

4. GRANT OF LICENCE - Licence to use the Standard Mark on a product is accorded only
after BIS has ensured the capability of the manufacturer to manufacture the product continuously
in accordance with the relevant Indian Standard. This is ensured through preliminary factory
evaluation to ascertain the capability of the manufacturer to produce goods according to the
relevant Indian Standard especially with respect to raw materials, process of manufacture,
manufacturing capability and quality control facilities including testing equipment and supervisory staff. Samples are tested in the factory, in order to bring out any deficiencies in test
equipment/testing procedures and testing personnel as well as for spot establishment of quality of
product. Simultaneously, samples are also drawn for testing in the independent laboratories for
assessing conformity to the relevant standard. The manufacturer is required to agree to operate a
well defined Scheme of Testing and Inspection (STI) as approved by BIS from time to time,
which inter alia prescribes the specific tests and the frequency for conducting them. In order to
meet the expenditure incurred by BIS in operating the licence, the manufacturer also has to agree
to pay a marking fee fixed by BIS for the product. Licence is granted only after the manufacturer
agrees to these conditions and if the factory inspection and test reports are satisfactory.

5. VALIDITY
The initial validity period of the licence is one year. Licence can be renewed for further period
of one/two years,

subject to satisfactory operation of licence as observed during periodic

inspections, factory & independent testing of samples drawn from factory and market. The
licensee shall apply to BIS on the prescribed Renewal Form along with renewal application fee
of Rs. 500/-, annual licence fee of Rs. 1000/- and marking fee, as applicable.

6. FEE
40 | P a g e

a)

Application fee of Rs. 1000/-(to be submitted with the filled-up application).

b)

Charges for Preliminary Inspection visit @ Rs. 4000/- per man day for first day and

Rs.3000/- for subsequent days (to be submitted with the application).


c)

Advance annual minimum marking fee (as prescribed by BIS) (different for different

products) (details available on BIS website) (To be deposited at the time of grant of licence and
submission of renewal application) (Annual licence fee of Rs.1000/- is also to be paid at the time
of grant of licence)
d)

Renewal application Fee (Rs. 500/-) and Annual licence fee (Rs. 1000/-) (to be submitted at

the time of renewal along with duly filled-in prescribed Renewal Form)
e)

The testing charges of the sample(s) drawn during Preliminary Inspection visit shall be paid

by the applicant.
f)

Special visit(s), if required e.g. for inclusion of varieties, resumption of marking,

verification of corrective actions, etc. @ Rs. 3000 per man day (after grant of licence).
g)

Concession in minimum marking fee for second or subsequent licences would be

applicable as under:

7 Minimum Marking Fee (Rs.)


Up to 20000
20001 23000

Concession (Rs.)
--Minimum Marking Fee minus 20000

23001 35000

3000

35000 50000

4000

50001 65000

5000

65000 80000

6000

41 | P a g e

Above 80000

8000

Licence with highest minimum marking fee shall be treated as the first licence, for the purpose of
concession in Minimum Marking Fee.
8. Applicable Govt. taxes.
For further information please contact: Branch office under whose jurisdiction the manufacturer
is located.

SIMPLIFIED

PROCEDURE

FOR

GRANT

OF

LICENCE

FOR

DOMESTIC

MANUFACTURERS
(Updated on 21 05 2007)
The simplified procedure has been introduced with a view to reduce the time taken for grant of
licence after submission of application. In this procedure, applicant is required to furnish the test
report(s) of the sample(s) got tested by them in the BIS approved laboratories, along with the
application. If the test report(s) and other documents are found satisfactory, a verification visit is
carried out by BIS. The licence is granted thereafter, if the verification report is found
satisfactory. The applicant also has the option to get the documents and other details as specified
in the application, certified by a Chartered Engineer of relevant discipline and submit the same to
BIS. The licence then shall be granted after scrutiny of the documents and report submitted by
Chartered Engineer. By this procedure the licence is expected to be granted within 30 days of
receipt of application by BIS, provided all required documents are furnished and found
satisfactory. Eligibility Criteria for Chartered Engineer has been laid down by Institution of
Engineers at their site (www.ieindia.org) as "Any life Corporate Member of the Institution of
Engineers (India) can designate himself as a Chartered Engineer (C Eng)".Reports from such
Chartered Engineers may be accepted for processing applications.

Similarly, reports from

Engineer Members of other Institutions like Indian Institute of Chemical Engineers


(www.iiche.org), The Institute of Electronics and Telecommunication Engineers (www.iete.org),

42 | P a g e

Institute of Electrical and Electronic Engineers (www.ieee.org), Indian Institute of Metals


(www.iim-india.com) and other similar institutions may also be accepted.
1 Application

1.1 If application is submitted without verification by Chartered Engineer


Applicant has to submit application in the prescribed Application Form and a Self Evaluationcum-Verification Report along with prescribed documents and a copy of test report not older than
one month covering all requirements according to the relevant ISS from a BIS recognized testing
laboratory together with the specified application fee of Rs. 1000/- and verification fee of
Rs.4000/-plus applicable taxes for grant of licence under Product Certification Scheme of BIS.

1.2 If application is submitted after verification by Chartered Engineer (Not applicable in


case of All India First licence for any product)
Applicant has to submit application in the prescribed Application Form and a Self Evaluationcum-Verification Report duly certified by Chartered Engineer of relevant discipline (Section C of
Self evaluation cum Verification report) along with prescribed documents and a copy of test
report not older than one month covering all requirements according to the relevant ISS from a
BIS recognized testing laboratory together with the specified application fee of Rs. 1000/-. If
Verification report by Chartered Engineer is not satisfactory and a visit by BIS officer becomes
necessary, special inspection charges of Rs 4000/- shall be payable to BIS. It may also be
desirable for the applicant to contact the concerned branch office of BIS to find out the
samples/raw materials, etc. required to be tested for covering a specified range/type, etc. of the
product in the licence.
The application form along with prescribed documents and requisite fee is required to be
submitted to the Branch Office under whose jurisdiction the manufacturing unit is located. Click
here for locating relevant branch office. One application should be submitted for one product and
for one manufacturing location.
43 | P a g e

The application form, documents to be attached with the application form including Self
Evaluation-cum-Verification Report and list of BIS recognized labs is available on the BIS
website (www.bis.org.in).

The licence is granted to the applicant for varieties of products covered under a given Indian
Standard amenable to certification if he has the capability to manufacture and test the product at
the specified location. Applicant is also required to agree to operate the prescribed Scheme of
Testing and Inspection (STI) and pay the Marking Fee during the course of operation of licence.
Marking fee rates and STIs (different for different products) are available on BIS website
(www.bis.org.in) (also see Para 2 under clause 3.1).
The test reports issued by the following laboratories will be accepted for processing the
applications (also please see notes below):
a) All BIS recognized laboratories.
b) Labs of CSIR, ICAR and other similar laboratories.
c) All labs under control of Central Govt. like NTH, RTC etc.
d) All labs under control of State Govt. which are NABL accredited.
e) All Labs of National Level Institutions like IITs, National Metallurgical Institute etc.
f) Labs of Department of Central Universities.
g) Labs of National Institute of Technologies.
Note 1: In case of BIS accredited labs, if the specific product is not covered in the list of items
for which the laboratory is approved but are similar to the products for which the lab is approved,
the test report of such lab may be accepted.
Note 2: Applicant shall invariably declare parameters, wherever applicable, at the time of
submission of samples with laboratory for testing. For any clarification in this regard, laboratory
or concerned BIS Branch office may be approached.
44 | P a g e

Note 3: Before submission of the samples for testing in any of the approved labs, the applicant
shall ensure from the laboratory preferably in writing that they have complete testing facility for
the specific product and they shall issue complete test report as per relevant Indian Standards in a
definite time period.
For products having testing facilities available only in BIS laboratories (and not in any of the
labs indicated above) OR where the testing charges of the products in laboratories indicated
above are several times higher than those charged by BIS laboratories, BIS laboratories would
accept samples of such products from applicants and carryout testing after collecting testing
charges fixed by BIS. Applicant however should clearly indicate the related Indian Standard
Specification Number, quantity and description etc. of the product which they intend to get tested
in their request to BIS lab for testing. Test Report shall be issued to prospective applicant by BIS
laboratories and such test reports may contain endorsement on each page as For BIS Internal
Use Only.
This scheme excludes processing of applications for products like LPG Cylinders where joint
inspection by BIS along with other Statuary bodies like Chief Controller of explosives is
involved, Cement where permission to manufacture cement is given by Cement Desk of Ministry
of Industry. Nearest BIS BO may be contacted to ascertain details for such products.

2 Recording
If the application is found complete in all respect along with Self Evaluation Report, Test
Reports and other documents, it will be recorded and assigned an application number. The
application is acknowledged and the number is conveyed to the applicant for future reference.

3 Processing
3.1 If verification is to be done by BIS Officer

45 | P a g e

The concerned BO where the application has been submitted further scrutinizes the application,
self evaluation-cum-verification report and test report(s) submitted by the Applicant. A factory
visit is normally arranged within 15 days of the submission of application to verify capabilities
of the organization with respect to Manufacturing and Testing facilities and competence of
Quality Assurance Personnel.
During the visit, sample(s) of product from regular production is also tested, sealed for
Independent Testing in BIS approved laboratory. After receipt of its Test Report(s), the case will
be reviewed. If the sample is found failing, marking shall be stopped immediately and a notice
for cancellation of Licence shall be given. Decision on cancellation shall be taken based on the
merit of the case and as per BIS Act, Rules and Regulations.
In case of discrepancies observed during verification visit, all corrective actions shall be
required to be completed by the applicant in such a time that process of grant of licence is
complete within 30 days. However, extension in time required for compliance, if any, shall be
given to applicant in writing and thus, any delay will be in the account of applicant. The total
time for processing the application in such cases shall not exceed three months. In such cases if
the independent test report from BIS or its approved laboratories (sample of which was drawn
during verification visit) is received in the meantime and found failing, the application may be
rejected and applicant advised to furnish fresh application under the normal procedure after
improving the quality of the product.

3.2 If verification is done by Chartered Engineer


The applicant would submit a certificate (Section C of Self evaluation cum verification report)
from a certified registered Chartered Engineer of relevant discipline certifying the installation
and working of manufacturing machinery, test equipments (as per ISS), production process,
competency of testing personnel, conformity of the test reports to applicable Indian Standards
and other details as per relevant Indian Standards as furnished by the applicant in the self
evaluation-cum-verification report.

46 | P a g e

On the basis of the certificate by Chartered Engineer, BIS shall consider the grant of licence if all
documents including test reports of the samples are found satisfactory.

4 Grant of Licence
Grant of licence shall be considered by the Competent Authority after scrutiny of required
documents submitted by the applicant and verification of the same by BIS to its satisfaction as
per BIS Act, Rules and Regulations and guidelines formulated for the purpose. The details of
such documents are as under:
a) Application (Form 1) (to be submitted by the applicant)
b) Self Evaluation Report (Form II) (to be submitted by the applicant along with application)
c) Verification of the Self Evaluation Report
(by BIS-Section B of Form II/by Chartered Engineer- Section C of Form II)
d) Test report(s) submitted by the applicant meets the criteria of the ISS applied for. Test
report(s) submitted shall not be older than one month covering all requirements including long
term tests, if any and tests on all raw materials (conformity of which have been specified as
mandatory in the relevant Indian Standard).Testing shall be got done according to the relevant
ISS from any of the labs indicated above for the particular product. Where applicant is using BIS
Standard Marked raw materials, the applicant shall not be required to furnish test report of these
raw materials. However, verification of such raw materials shall be done by BIS officer during
verification visit/surveillance visit (if verification is done by Chartered Engineer) and samples of
the same may be drawn for testing in BIS or its recognized laboratories as a market sample.
For products, where there is no testing facility available in any of the laboratories indicated
above, licence shall be granted based testing in the factory for which the applicant should have
complete testing facility in-house for all tests as per related Indian Standards.

47 | P a g e

After processing for grant of licence is complete, the applicant is advised to deposit the advance
minimum marking fee as applicable and the annual licence fee through Bank Draft within seven
days and thereafter the approval letter of grant of licence is issued.
Process of grant of licence is expected to be completed within 30 days of submission of the
application, if all pre-requisites are met by the applicant. At the time of submission of the
application, it should be complete in all respects along with Fee, Self Evaluation Report, Valid
Test Reports (not more than one month old) and other prescribed documents/ requisite details.
5. Validity
The initial validity period of the licence is one year. Licence can be renewed for further period
of one/two years,

subject to satisfactory operation of licence as observed during periodic

inspections, factory & independent testing of samples drawn from factory and market. The
licensee shall apply to BIS on the prescribed Renewal Form along with renewal application fee
of Rs. 500/-, annual licence fee of Rs. 1000/- and marking fee, as applicable.

6. Fee
1. Application fee of Rs. 1000/-(to be submitted with the filled-up application)
2. Charges for verification visit @ Rs. 4000/- per man day for first day and Rs.3000/- for
subsequent days (to be submitted with the application) (If verification is to be done by BIS)
3.

Advance annual minimum marking fee (as prescribed by BIS) (different for different

products) (details available on BIS website) (To be deposited at the time of grant of licence and
submission of renewal application) (Annual licence fee of Rs.1000/- is also to be paid at the time
of grant of licence)
4. Renewal application Fee (Rs. 500/-) and Annual licence fee (Rs. 1000/-) (to be submitted at
the time of renewal along with duly filled-in prescribed Renewal Form)

48 | P a g e

5. The testing charges of the sample(s) drawn during verification visit( if verification is done by
BIS) shall be paid by the applicant along with the application or during verification visit which
shall be adjusted in marking fee to be paid by the applicant at the time of grant of licence.
6. Special visit(s), if required e.g. for inclusion of varieties, resumption of marking etc. for any
shortcoming in the verification by Chartered Engineer @ Rs. 3000 per man day (after grant of
licence).
7. Concession in minimum marking fee for second or subsequent licences would be applicable
as under:
Minimum Marking Fee (Rs.)
Up to 20000
20001 23000

Concession (Rs.)
--Minimum Marking Fee minus 20000

23001 35000

3000

35000 50000

4000

50001 65000

5000

65000 80000

6000

Above 80000

8000

Note: Licence with highest minimum marking fee shall be treated as the first licence, for the
purpose of concession in Minimum Marking Fee.
8. Applicable Govt. taxes
For further information please contact: Branch office under whose jurisdiction the manufacturer
is located.
(All information as BIS).

49 | P a g e

ANNEXURE V
A). COST ESTIMATE FOR SETTING UP OF 10000.00 LITER/Hr. BOTTLING PLANT.
Sr. No

Description of Item

Cost in INR

1.0

Mineral Water Plant comprising of complete Treatment Plant.

37,16,000.00

2.0

Bottling Filling Machine Capacity:Automatic) 500 ml to 2000 ml.

38,95,000.00

3.0

Computerized Digital Batch & date Coding System.

4.0

PET Blow Moulding Machine (Cap 3600 BPH) with


compressor and moulds of size 500 ml, 1000 ml, 2000 ml with
spare etc., complete.

5.0

Complete Laboratory Set Up (As per BIS)

3,61,667.00

6.0

SS Piping between Plant and Machinery with Tank, Pump and


other required accessories.

2,40,000.00

7.0

5-20 liter Jar Brusher, Washer & Filler Unit (AUTO)

12,50,000.00

8.0

BOPP Labeler Unit Fully auto (120-150 BPM)

23,80,000.00

9.0

Carton Sealer Unit BOPP Tape Sealer (Top & Bottom)

120

BPM

(Fully

2,55,000.00
45,25,000.00

2,64,000.00

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10.00

Refrigeration based one No 5 Ton air cooled water chiller with


separate SS304/316 tank of 2000 Litres capacity.

11.00

TAXES, Duties, Other Charges etc.,

12.00

2,70,000.00
42,02,743.00

TOTAL FOR PLANT MACHINERY

1,76,43,410.00

(Rs. One Crore, Seventy Six Lakhs, Forty Three Thousand, Four Hundred and Ten Only)

Cost for Per Bottle are as follows :

Preform
Size
15 gm 28
mm
ALASKA
21 gm 28
mm
ALASKA
34 gm 28
mm
ALASKA
100 gm 46
mm

Preform
cost/
Rs/Pc

CED @
10.3%

121.85

1.83

0.19

0.07

2.09

18

121.85

2.56

0.26

0.10

2.92

103.85

18

121.85

4.14

0.43

0.17

4.74

103.85

25

128.85

12.89

1.33

0.52

14.73

Pack
size

Resin
cost/Kg

Conversion/
Rs/Kg

500 ml

103.85

18

1000 ml

103.85

2000 ml
5000 ml

Total
cost/
Rs/Kg

ST @
4.0 %

TOTAL
INR

For 20 Liter bottle cost of INR 120.00 including all taxes and duties etc.,

BIS license fee, testing of material in independent lab, daily operation maintenance,
wages of minimum 7 staff from (Lab assistant-1, operators -2, Plant Manager -1,

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Accounts-1 and one for utility person-2), than packaged good transportation, labour for
loading- unloading (daily basis as when required).

Land cost as Minimum area required for the Plant is 3000 sq. ft for 10000 Liter/Hr. plant.

Water charges not considered for production (Cost if any be fixed by STEM).

ANNEXURE VI
COST OF PRODUCTION FOR 1 LITER WATER BOTTLE

Sr.
No.

Various Head

Cost In Rs.

Bottle Cost (Avg. Cost)

Rs. 1.5 - Rs. 2.50

Cap Cost

Rs. 0.25

Treatment Cost

Rs. 0.50 -Rs. 1.00

Label Cost

Rs. 0.25

Carton Cost

Rs. 0.50

Transportation Cost

Rs. 0.50 -Rs. 1.00

Others (Marketing, etc.,)

Rs. 1.00

Total Cost ( Excluding Labour, Marketing and Taxes)

Rs. 4.50 - 6.50

Selling Cost in Market

Rs. 9.0 *
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ANNEXURE VII

"B" MAN POWER REQUIRED FOR 1 Lakh Liter Plant


Sr.
No.

Designation

No. of Staff

Monthly Salary Annual Cost in INR


in INR

CEO / MD

300000.00

3600000.00

Admin & Accounts Manager

100000.00

1200000.00

Area Sales Manager

100000.00

1200000.00

Sales Supervisor

50000.00

1200000.00

Sales Representative

25

12000.00

3600000.00

Drivers

20000.00

480000.00

Washer

12000.00

144000.00

Filler

20000.00

480000.00

Loader

15000.00

360000.00
53 | P a g e

10

Plant Helper

8000.00

96000.00

11

Packing Supervisor

8000.00

96000.00

12

Marketing Manager

80000.00

960000.00

13

Marketing Officer

50000.00

600000.00

14

Watchmen

7500.00

90000.00

15

Computer Operator

15000.00

360000.00

16

Office Helper, Cleaner etc.,

8000.00

384000.00

Total

48

1,48,50,000.0
0

ANNEXURE VIII

"C" KIOSK SETUP AND OPERATION


Sr.
Description
No.
1 Construction / Setup of Kiosk
with Storage.
2 Operators for KIOSK
3 Helper, Loader
4 Watchmen
5 Power and Water Charges
Total

No.
20
2
1
1
LS

Cost in INR
500000.00
25000.00
10000.00
10000.00
25250.00

Total Cost in
INR
10000000.00
600000.00
120000.00
120000.00
25250.00
1,08,65
,250.00

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ANNEXURE IX

"D" CONSTRUCTION AND OTHER SETUP COST FOR PLANT


Sr.
Total Cost in
Description
No.
Cost in INR
No.
INR
Civil Work / Industrial Shed Area
3000 Sq. Ft @ Rs. 1500 Sq. Ft
with Complete Electrification,
1
1
4500000.00
4500000.00
Plumbing etc., Complete. Includes
office, common area, plant area,
and store.
2 Parking required @ Rs. 200 Sqft of
1
60000.00
60000.00
nearly 300 Sq.ft
3 Misc for Meter room, Drains, upto
1
250000.00
250000.00
nearest drain etc.,
4 Power Charges
1
3967500.00
3967500.00
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Total

87,77,5
00.00

ANNEXURE X

"E" FURNITURE, FIXTURE OFFICE EQUIPMENT AND OTHER COMPONETS


Sr.
Total Cost in
Description
No.
Cost in INR
No.
INR
Table Chairs for CEO/ MD and other
1
28
20000.00
560000.00
Office Staff
2
Chairs for other staff and for Visitors
40
1500.00
60000.00
3
Internal furnishing, like Cupboards.
10
15000.00
150000.00
Computer with required software with 10
4
number
4.1 Machine Cost latest configuration.
10
28000.00
280000.00
4.2 Operating System latest
10
7500.00
75000.00
4.3 MS Office latest version
10
24000.00
240000.00
4.4 Tally Multiuser
45000.00
45000.00
4.5 Internet with Modem etc.,
1
25000.00
25000.00
4.6 Telephone
1
450000.00
450000.00
4.7 Laser Printer
4
8000.00
32000.00
4.8 Dot Matrix
1
15000.00
15000.00
4.9 UPS or Battery Backup
12
4000.00
48000.00
4.10 Server
1
400000.00
400000.00
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4.11
5

7
8
9
10
11

Backup hard disk, softwares, pen drives


etc.,
Office Consumables like paper,
Cartridges, Pen pencil, log books etc.,
Air Conditioner for Offices and Plant
Area. Rate taken as 2.0 T A.C. for area of
2000 Sq. ft Covered leaving storage and
other areas with installation and piping
etc., Complete.
Lorry Truck, Transportation Trucks in and
around the cities. Avg. Price taken for
Small and Large Loading Vehicle
Office Vehicles Cars for Transportation of
Staff etc.,
Small Bus for Staff travels
Fuel and Maintenance cost for Vehicles
Necessary Approvals like BIS license,
regular testing of materials, water quality
and other regulatory Approvals
Total in Rs.

LS

50000.00

50000.00

LS

1000000.00

1000000.00

Rs. 40000
for 2-Ton
AC

720000.00

720000.00

1150000.00

3450000.00

700000.00

2800000.00

1
LS

800000.00
2500000.00

800000.00
2500000.00

LS

500000.00

500000.00

1,42,00,000.00
ANNEXURE XI

"F" RUNNING COST AND MATERIAL COST


Sr.
No.

Description

Material for Bottles number of


days storage cost of nearly 5.5
1 Lakhs and for 1 Lakhs litre Plant
requirement is of 1 truck can carry
2 days material.
Annual Cost considering 360 Days
1.1
of Plant run.
20 Litre Bottles Cost ( Can be used
for 3 Months) and considering
10.0% replacement and Total 30000
2 Litre daily be served by these
bottles so required no of bottles are
(1500 + 10.00 % ) X 2 for loss i.e.
3300 Bottles every 3 months.
Total in Rs.

No.

180

16,500

Cost in INR

Total Cost in
INR

600,000.00

10,80,00,000.00

150.00

24,75,000.00

13,75,10,000.00

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ANNEXURE XII
G

GRAND TOTAL COMPLETE IN Rs. Sum ( A + B + C + D + E + F)

20,38,46,160.00

"H" MARKETING AND PROMOTIONAL EXPENSES


Sr.
No.

Description

No.

Cost in INR

Total Cost in INR

Total Project Costs 20.00% taken as for


Marketing purpose which is Rs. 20.40
Crore.
1

TV Commercial @ 50 % of total Budget

LS

204,00,000.00

20400000.00

NEWSPAPER @ 20 %

LS

81,60,000.00

8160000.00

BROUCHERS @ 10 %

LS

40,80,000.00

4080000.00

BANNERS @ 7.5

LS

30,60,000.00

3060000.00

HOARDINGS @ 7.5

LS

30,60,000.00

3060000.00

PROMOTIONAL
OTHERS @ 5.0%

LS

20,40,000.00

2040000.00

ESTIMATED AMOUNT OF FOR ADVERTISMENT OF PROJECT COST

SHOWS

AND

4,08,00,000.00

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TOTAL OVERALL COST FOR SETTING UP 1 Lakhs Liter BOTTLING PLANT.


Sr.
No.
1

Description

No.

Cost in INR

Total Cost for Plant considering all factors for Setup ( Sum of all G + H)

Total Cost in INR


24,46,46,160.00

NOTE:
Assumptions taken into Consideration while Estimating the Cost:
1) Period of construction and machinery installation is 6 months.
2) Total covered area of 3000 Sq. Ft.
3) The life of Equipments and complete machinery is 10 Years.
4) The cost of required land for plant and Kiosk at respective corporations is not considered as
holding corporations are on revenue sharing basis holding of STEM, the profit earned will be
shared accordingly.
5) Number of working days are 365 days, while plant capacity of 1lakh liter per day in single
shift.
6) Cost of raw water i.e. water required for processing is considered Nil.
7) Maximum capacity utilization is 95.00%.
8) Sample survey of Bhiwandi city and adjoin major roads and Highways is attached for the
same.

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