PACKAGED DRINKING WATER

QUALITY AND STANDARDS

As per BIS specifications

PRODUCTION CAPACITY

45 lakh bottles of 1L capacity/annum

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

a)

The unit will work for 300 days per annum on single shift 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:

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.

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5.2 Process of Manufacture

The flow chart of the process is as follows:
Raw water from Source

Raw Water Storage

Raw Water Lifting Pump

Sand Filter

Activated Carbon Filter

Base Exchange Softener

Ultraviolet Disinfection

Micro Filteration System

High Pressure Pump System

Desalting

Mixing

Storage of Treated Water

Polishing Filteration

UV Disinfection System

Filling, Sealing & Capping M/C

5.3 Quality Control and Standards : As per BIS requirements

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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
Installed capacity
Optimum capacity utilization
Working days
Manpower
Utilities
Motive Power
Water

:
:
:
:
:

45 lakh litre/annum (15,000 L/day)

20,000 L/day
70%
300/annum (3 shifts)
18

:
:

40 kW
25 kL/day

9.0 FINANCIAL ASPECTS

9.1

Fixed Capital

9.1.1

Land & Building

9.1.2

Amount (Rs. lakh)

Land 2000 sq.m.

Built up Area 700 sq. m.

Total cost of Land and Building

Machinery and Equipment

Description

Amount (Rs. lakh)

UF based purification system (Sand filter,

chlorination unit, UF membranes,
sterlisation unit, SS silverisation unit, skid,
electronic doser, ozone generator, water
collection tanks, Quality control laboratory,
deep borewell, deliveray van

28.00

Erection and electrification @ 10%

of machinery cost

2.80

Office furniture & fixtures

1.20
32.00

Total
9.1.3

1.50
24.50

26.00

Pre-operative Expenses

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9.1.4

Consultancy fee, project report, deposits with

electricity department etc.

3.00

Total Fixed Capital

61.00

(9.1.1+9.1.2+9.1.3)
9.2

Recurring expenses per annum

9.2.1

Personnel
Designation

No.

Salary
Per month

Amount
(Rs.lakh)

Factory Manager
Production Manager/Chemist
Supervisory staff
Office Assistant
Skilled workers
Unskilled workers

1
1
6
2
4
5

6,000
5,000
4,000
3,500
2,500
2,000

0.72
0.60
2.88
0.84
1.20
1.20
7.44
0.76

8.20

Perquisites @ 10%
Total
9.2.2

9.2.3

18

Raw Material including packaging materials

Particulars

Qty.(MT)

Rate

Pet bottles including

caps, labels, 1L size

45 lakh

3.60 each

162.00

Chemicals
Corrugated boxes
bottles

-LS1,88,000

-LSRs. 20/24

006.00
037.60

Total:

------

-------

205.60

Utilities

Amount (Rs. lakh)

Power 180,000 kW
Water 25 kL/day

4.92
0.28

5.20

Total:
9.2.4

Amount (Rs.lakh)

Other Contingent Expenses

Amount (Rs. lakh)

260

Repairs and maintenance@10%

Consumables & spares
Transport & Travel
Publicity
Postage & stationery
Telephone
Insurance

3.20
1.20
0.40
0.05
0.08
0.13
0.44

5.50

Total:
9.2.5

Total Recurring Expenditure

Amount (Rs. lakh)

(9.2.1+9.2.2+9.2.3+9.2.4)
9.3

224.50

Working Capital
Recurring Expenditure for 3 months

9.4

56.13

Total Capital Investment

Amount (Rs. lakh)

Fixed capital (Refer 9.1.4)

Working capital (Refer 9.3)

61.00
56.13

117.13

Total:

10.0 FINANCIAL ANALYSIS

10.1

Cost of Production (per annum)

Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5)

Depreciation on building @5%
Depreciation on machinery @10%
Depreciation on furniture @20%
Interest on Capital Investment @12%

224.50
1.23
3.08
0.19
14.00

243.00

Total:
10.2

Sale Proceeds / Annual turnover

Item

Qty.
(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

6.00

270.00

270.00

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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)

All depreciation
Interest
40% of salary, wages, utility, contingency
Insurance
Total:
10.7

Break even Point

= Annual Fixed Cost X 100
Annual Fixed Cost + Profit
= 26.50 X 100
26.50 +27
= 49.5%

262

4.50
14.00
7.56
0.44

26.50

11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Sonalifabs
71, Biren Roy Road (West)
Kolkata 700 061

Rital Agencies
55 III Main Road, Gandhi Nagar,
Chennai 600 020

Enviro Tech Utility,

32A, Main Patel Nagar Road,
Opposite Wings Show Room
West Patel Nagar
New Delhi 110 008

Ion Exchange India Ltd.

Ticcon House
Dr. E.Houses Road,
Mahalaxmi,
Mumbai 400 011

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

Alpha Engineering
158, Pocket E-20, Sector-II
Rohini, Delhi 110 085

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