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Executive Summary

Indian Bottled Water industry is growing a very fast rate of 19% annually and is expected
to grow to 36,000 crores by 2020. This growth in demand for mineral water is due to the
following factors:
Increased awareness about drinking water quality and health
Decreasing water quality and users having to go for ground water
Environmental pressures on wastewater discharge from government pollution control
boards
Reducing availability of water forcing users to go for reuse & recycling of water
General Industrial and Economic Growth particularly in chemical, pharmaceutical,
power plants, food and textile industry

These factors have led many players to enter the mineral water industry and Parles Bisleri
holds a leading position with a 36% market share in the organized mineral water industry,
with Coca-Colas Kinley and Pepsis Aquafina fast catching up. Kinley has 25% and
Aquafina approximately 15% share in the market. Parle Agro's Bailley has a 6% share in the
market among the national players. The rest includes other organized brands such as
Kingfisher, Himalaya, Oxyrich; McDowells no 1 together with an 18% share. Industry
experts say that quality controls need to be in place to curb the growth of unorganized players.
Still the organized mineral water Industry is able to tap only 40% of the total demand of
mineral water in India and rest of the demand is fulfilled by the unorganized players at local
level. South India is the biggest consumer of bottled water representing more than 50% of the
total market due to water-starved areas, followed by the western region which is the home
ground of major national players.
To tap this ever increasing demand of mineral water in India we are setting up a
mineral water plant by the name of XXX which we are planning to set up in South India
since it is the largest market of Mineral water in India. Major contributors to the demand in
South India are from unorganized players and organized players have yet not able to penetrate
deeply into south. Looking at this opportunity we will set up our bottling plant in the village
of YYY in southern state of Andhra Pradesh, India. The head office will be located in in
ZZZZ City. Presence in ZZZZ will help to tap the requirement in the nearby states like Tamil
Nadu, Kerala and Telangana.
The company will apply for certificate of ISI from the Indian Bureau of Standards.
The company will look to manufacture bottles of 500ml, 1000ml, 2000ml and 20 liters and
will serve the requirements of clubs, fitness centers, cinemas, department stores, malls, ice-
cream parlors, cafes and retail outlets, besides restaurants, hotels and supermarkets.

PREREQUSITES FOR A MINERAL WATER PLANT


It is mandatory for all the manufacturers who intend to set up the processing unit, to
obtain the ISI mark from Bureau of India Standards. Unless the inspection is done by the
staff, tests carried out in an independent lab and official confirmation and license number
is obtained, unit cant commence commercial production.

Such Lab should be equipped to carry out all physical, chemical and micro biological tests
prescribed as per IS: 3025, 1070, 4905, 5401, 5402, 5403, 5887, 10146 & 10500 and has
to be conducted by expert chemist / micro biologist.

Only Two Packaged Natural Mineral Water governed under IS: 13428:1998, Amendment
1-5 up to 15th October 2004 and Packaged Drinking Water governed under. IS:
14543:2004

If the water is drawn from natural source, confirms to composition listed under IS:
13428:1998, Amendment 1-5 up to 15th October 2004 and is bottled WITHOUT
ALTERING the composition, falls under Natural Mineral Water. In packaged drinking
water, any of the processes of filtration / disinfection listed under is: 14543:2004 can be
utilized, altering the composition of subject water & finally, bottling it.

Under Ministry of Water Resources, Central Ground Water Authority [CGWA] regulates
the use of ground water. Under power conferred to them under section 5 of Environment
[protection] Act, 1986, CGWA has directed all processing units of bottled water to get
their bore well registered with them. The same has to be applied under prescribed
Performa.

2, Water scarcity
Figure 1 : Water situation worldwide.
Current water situation map worldwide. above clearly shows that Physical water scarcity
exists in the Sunrise state of Andhra pradesh. Especially our Telugu states already
approached the water scarcity every year.

3, Market Value

In order to give brief overview of the global water market as well as Indian market. Below
figure indicates that global and regional water market increasing progressively with the every
year. The projections of water scarcity as shown in figure shows that more than 30 billions
USD will be expected by the year of 2018 worldwide. Additionally figure below clearly
shows that, globally every industrial sector progressively spending and increasing their
expenditure in water treatment. Especially, India also spending lot of expenditure in water
treatment for different industrial sectors to avoid the environmental water pollution.
Figure 2 : Global water market

4, Product idea and Technology


The manufacturing strategy has three main components

1) Raw material
2) Production process
3) Packaging process

MANUFACTURING STRATEGY

Raw material: Water will be the raw material for the mineral water plant which will be
sourced from groundwater pumping near the plant. Plastic Bottles will be used for the
packaging and distribution of mineral water.

Production process:
The first step for setting up a water purification plant is the analysis of source of water. The
groundwater will be fit for purification and consumption by human beings. After the chemical
analysis, the specifications of the purification plant are set. In the purification plant, source
water is stored in the feed water tank, passes through the sand filter for preliminary water
filtration.
Water then passes through the dosing pump-I where chlorine is added to kill the germs in the
water. After the chlorination, water passes through carbon filter. It helps in the maintenance of
proper odor and taste of the water. It also removes chlorine from water.
After this stage water is passed through Ultraviolet disinfection (UV) where water is exposed to
UV light of wavelength 245 nanometers (nm). A dosage of 16000 microwatt/sq.cm at 40 C for
effective disinfection.
Water is then passed from dosing pump-II, where Sodium Meta Bisulphate is added. It helps
in de-chlorination of water.
Water is filtered next and passes through dosing pump-III, where anti scalant is added. It
prevents scaling of membrane from calcium, magnesium and biological growth. Water then
passes through reverse osmosis module. This stage of the process makes water clear from all
the contaminations and minute particles. Water then passes through dosing pump-IV, where
minerals are added for taste development.
Water then passes through automatic washing, filling and capping plant. Here water is filled
into bottles.

Packaging Process:
Our Mineral Water Packaging and bottling process is performed following the certified
quality standards norms and guidelines of Portable Water Package experts, which will
separate us from unorganized competitors in the same field. We will employ highly qualified
and experienced professionals perform rinsing, filling, capping and labeling operations to
ensure purity and satisfaction of the customers.

Filling: Bottles are fed by an air conveyor from the blowing unit directly into the in-feed of
the RFC. The 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.

Capping: After completion of filling process the bottles are transferred to the capping
section. Here ozonated-water rinsed caps are screwed on the bottle with uniform torque. Since
our water is ozonated all product contact parts are of 316L grade stainless steel and the rubber
parts are of EPDM. (All components are water lubricated above the table top.)

Labeling: From the capping section the bottles are directly sent to the labeling section. All
Mineral Water 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.
Quality Check: For quality testing, the bottles will go through manual check up of each
bottle for any leaks or breakages. They are then packed into sturdy cartons which are
dispatched to the market.

Following is the description of Machinery and its quantity that will be required to run
the Mineral Water Plant:
S.No Description Quantity
.
1. Alum doses 3 liter/hr 1
2. 2 No.s Pump 1
3. Activated Carbon Filter Flow rate: 2000 lit./hr 1
4. Pressure sand filter flow rate: 2000 lit./hr 1
5. Softener 1
6. Reverse Osmosis system permeate flow 500 lit/hr consist of 5 micron filter 1
SS-304 PP H.P. Pump with 3 HP Motor Membrane 4 nos.

7. Pressure Vessel 4
8. Ozone generator 1
Capacity 1 gm/hr
Flow rate 1000 lit/hr
9. UV disinfectant flow rate-1000 lit/hr 1
10. Storage tank for pure water capacity :1000lit 1

Bottling Section
11. Stainless Steel Conveyor: Made of S.S, 8 meter long for conveying of 1
empty washed bottles onto the filling machine. The different operations like
rinsing, filling, capping are done on the conveyor. Electrical Details: 0.5
H.P. with variable speed drive.

12. Rinsing, Filling, And Capping: This machine is designed to fill 24 bottles 1
per minute for 1 liter bottle & is capable to fill 500 ml, 1000 ml, and 1500
ml bottles. Machine speed is depended on the volume to be filled. The
bottles are hold in groups of 6 & moved on the conveyor together. These
grouped bottles are rinsed by means of spraying pressurized water inside the
bottle. After Ringing the bottles are again placed on the conveyor & are
loaded on the filling & capping machine one by one. Filling & capping takes
place by indexing mechanism. There are total 8 indexes.
13. Change parts for 500 ml and 1000 ml 1 set each 1 set each
14. Shrink Tunnel: This is fitted on the online conveyor to shrink labels and 1
neck sleeves. The labels & neck sleeves are to be manually inserted on the
bottle. Machine will be provided with suitable capacity Heaters, Blower,
Reduction Gear Box and Electric Motor, complete in all respects ready to
use.
15. Printing Machine (for mfg. Date & batch nos.) Semiautomatic machine is 1
proposed. This is a table top coding machine with a printing area of 35 mm
x 25 mm & capable of printing 3 variable line message on labels or caps.

Distribution

All the transportation system will be outsourced, and contract will be given to those
companies those have reach to almost every city of Andhra.
The distribution channel will be like these:

Companys warehouse

Distributor

Retailer

Customer

We will also try to work on establishing B2B channels such as:


Restaurants
Hotels
Canteens
Commercial Businesses

5, Company:

The core company have following major key players.

BluAct Technologies GmbH is Zurich based swiss company established in 2016.

Recently Absolutum group established a branch.

6, Products
Figure : Products under consideration
1, Drinking water (Household)
20 lit. - Rs.79
2 lit- Rs.29
1 lit.-Rs.15
500 ml. - Rs.10

7, Proposal for manufacturing unit in Andhra Pradesh


.

Figure 7 : Industrial Hubs planned for Sunrise state - Andhra Pradesh


Figure 8 : Industries planned in the state of Andhra Pradesh by 2020
So, due to coastal region and new state government ease of doing business policies, would
like to establish their manufacture plant in either Vizag or Amaravathi. Initially, we plan to
establish a small-scale industry, in further we would like to expand the production plant to
large scale depending on the order-supply chain.
From the Mission 2020 for Sunrise state of Andhra pradesh, the industrial hubs are being
developed in four hubs -so we propose to set up our manufacturing plant in closer proximity
to the treatment of waste waters released from the industries. While location of the
manufacturing plant is of strategic importance, we are also of the opinion to bring in a
secondary centre of influence to create social upliftment of the region - either in the form of
employment.
8, Finances
Startup cost info

Description Amount (Rs.)


1 Land 3500000
2 Building 1500000
3 Plant & Machinery 3500000
4 Furniture 50000
5 Gen Set 500000
6 Bore tube well 150000
7 Start-up cost 100000
8 Delivery van 450000
Total 9750000
The aforesaid projections are based on the projected costs of manufacturing plant in India.
Weve also constantly looking to our CMs dashboard and would be able to update the data
for the State of Andhra pradesh as soon as the Ministry of water resources has costs and
revenues feed live like other indicators.
9, Requesting support from Andhra Pradesh state government
In order to establish a manufacturing plant in Andhra Pradesh, 10 acres of land is required. In
order to run the company on continuous basis of production 24 hours electricity supply and
since the manufacturing process required continuous water supply of 10-50,000 L per day.

Manpower requirement :

Projected Land requirement for equipment setup :

Projected financing requirement (estimated) - revenues generated (one time investment)

Other resources costs - of revenues

Regulatory approvals and possibility for acceptance

Government accepting the prototype for implementation with treatment plants of govt

Desired locations :

Disclaimer : These are projections only and may not necessarily reflect actuals.

10, Benefit to government of Andhra Pradesh


Supply of drinking water is critical for the newly formed Andhra Pradesh to flourish. It will
also create job opportunities for local people and helps in the development of local economy.