PROPOSED BOTTLE WATER PRODUCTION PLAN

FOR SMART HYDRATION

11th May, 2020

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1.0 INTRODUCTION

Demand for bottled drinking water has been growing rapidly since the 1990s,
increasing nearly 400% in the last decade as a result of declining consumer confidence
in the safety and quality of municipal water supplies.

When it comes to life, the importance of water cannot be underestimated, because

water is very essential to man's existence and without it human being cannot survive.
Traditionally, people used water for a number of purposes, including cooking,
drinking, washing, bathing, watering livestock and later for industries, but nowadays
people use it for another motive which is for economic activities.

Water industry here in Nigeria is booming recently and very profitable, the industry
has gained the attention of many entrepreneurs who see it as a window of
opportunity.

Despite the number of existing competitors, the market is still not saturated due to
the fact that water is a necessity for all irrespective of age, class, employment status
or gender.

2.0 PROPOSED NAME:

Option 1: Water Time

Option 2: QTT (Quench the thirst) Water

Option 3: Refreshing

Option 4: Be Hydrated

Option 5: Smart Hydration

For the purpose of this presentation, we shall use Smart Hydration.

3.0 PROPOSED LOCATION:

The Legation Car Park extension

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4.0 MARKET SEGMENTATION

Smart Hydration (hereafter referred to as “SH”) customers can be divided into four
groups;

a. The first group is the wholesalers and supermarkets that sell bottled water of
different sizes and varieties.
b. The second group is hotels, restaurants, cafés and retail shops.
c. The third group are residential homes where households make a delivery
agreement with the company directly in order to save time and get a discount.
d. The fourth group of our customers is to be universities, schools, hospitals and
etc.

Smart Hydration has a targeted market which falls anywhere between the ages from
birth to senior citizens.

5.0 MARKETING STRATEGY

Smart Hydration will position itself as a stylish purified water supplier and other
services provider. It will serve high-quality water and hygienic bottles at competitive
prices. Due to the number of water production companies, it is important that Smart
Hydration will set fair prices for its products.

Smart Hydration will use advertising as its main source of promotion (Social Media).
Accompanying the advertisement will be a coupon for discounted water

6.0 COMPETITIONS

Smart Hydration has got a number of competitors, the main competitors in the water
sector within the same location are Nestle, Eva, Aquarite, Aquafina and Viju Water
are the most reputable and enjoying the largest share of the market in most parts of
the country.

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Smart Hydration understands the need for differentiation and strongly believe that
combining water with healthy life style is the key to success. However, Smart
Hydration will offer substantial products and services to its customers such as quality
assurance, free and quickest delivery agreements, free advice, tailored customer
care, ability to book online and bottle retrieval for a healthy environment at a fee
which these Smart Hydration competitors do not provide to their clients at the
moment.

7.0 STEPS TO BE TAKEN

1. Smart Hydration will be registered with the Corporate Affairs Commission (CAC).

2. Smart Hydration will be trademarked under Class 32.

3. SETTING UP THE BOTTLE/SACHET WATER FACTORY

Stage A.          PRE-PRODUCTION/ADVISORY INSPECTION

Before Smart Hydration starts building or equipping the acquired space, an

application for a Pre-Production/Advisory Inspection by NAFDAC to ascertain if the
location meets the requirements for setting up a bottle/sachet water producing
factory will be done.

Stage B.          CONSTRUCTION AND EQUIPPING

Once the site has been confirmed adequate, we can rush through the building
construction or demarcations as the case may be. The direction of flow of respective
sections will be Cloakroom, Packaging material store, Raw material store, Production
section, finished products store, making sure there are insect-proof nets on all
windows and the doors are self-closing.

Smart Hydration will label all the equipment and rooms/areas accordingly, as well as
provide adequate convenience rooms away from the production section(s) but easily
accessible from there.

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Smart Hydration will drill a borehole (150ft deep or more), run the plumbing, do a
raw water laboratory analyses, install the water treatment plants and water
producing equipment, making sure to follow all the regulatory guidelines specified,
put the necessary safety equipment in place, test run the various setups.

Step 4:             NAFDAC REGISTRATION

Stage A.          BEFORE APPLICATION FOR PRODUCTION INSPECTION

Once the factory is fully setup and all that is needed is for NAFDAC to come certify
the production facility and bless Smart Hydration with the almighty NAFDAC number.

We need to have the following in place:

1. Production staff, which must include a Production Manager with appropriate

science-based qualifications and experience.
2. Food Handlers Certificate for all staff (production and non-production), which
is given by a hospital after general medical check-ups and laboratory tests to
ascertain the health status and fitness of each personnel to handle food meant
for public consumption.
3. Evidence of retainership agreement between the factory and a medical facility
for health related issues
4. Evidence of recent fumigation of factory premises from a certified fumigation
company as well as a partnership agreement for fumigation purposes between
the factory and the company.
5. Comprehensive laboratory analyses report for the raw water i.e. borehole
water before undergoing treatment and the treated water (after treatment
from the installed water treatment plant). This should be done by a qualified
Institute of Public Analyst of Nigeria (IPAN) laboratory.
6. Quality assurance agreement between the factory and an IPAN laboratory for
subsequent analyses of batches of produced bottle water, this is if we choose
not to have an In-house Quality Assurance Department.

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 7. Standard Operating Procedures (SOP) for production, Quality Control, in and
out-premises sanitation, equipment maintenance, product distribution and
recall, hygiene and others, written in appropriate format and signed by the
Production Manager.
8. Company organogram identifying key personnel, their names, designation and
qualification.
9. Letters of Appointment for the key personnel together with their letters of
acceptance.
10.Credentials of key personnel, particularly the Production Manager.
11.Detailed flowchart of the factory’s water production process showing water
source, treatment process and production steps.
12.A list of all equipment, suppliers name and contact details.
13.Geological survey of borehole where applicable showing terrain characteristic,
depth of drill etc.
14.Copies of detailed labels for intended bottle products based on the trademark
registered. The labels will show the name of product, full address/contact of
factory, volume capacity, batch number, date of manufacture, expiration date
and logo.

Copies of these documents together with the CAC certificate, proof of Trademark
registration and respective evidence of statutory fee payment to NAFDAC (for
production inspection of factory and laboratory analyses of produced water samples
after inspection) are filed and submitted with the application for production
inspection to the designated NAFDAC office.

Stage B.           PRODUCTION INSPECTION BY NAFDAC INSPECTORS

Once Smart Hydration has submitted all the required documents to NAFDAC and they
find no discrepancies or mistakes, a date will be fixed for Production Inspection and
Smart Hydration gets notified about it.

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On the appointed date, be ready with your original documents and four copies of
same documents for the inspectors and your production manager. Your production
staff should be well acquainted with the respective SOPs and your water factory
should be in prepared condition. The Production Manager is the main representative
on this day as he/she will be the person to take the inspectors around and answer
most of the questions especially the technical aspects. NAFDAC inspectors are
generally friendly, but since they have a duty to safeguard public health and maintain
strict standards, they might come out sounding harsh during their assessments and
questioning.

They will verify the authenticity of the documents filed by going through the original
copies that would be made available. Then inspect your interior and labelled room
areas for proper furnishing, fittings and equipping, your exterior surroundings,
borehole and distance to septic tank, raw water source, water tanks and treatment
plants, production equipment, production processes and SOPs.

If your facility and processes meets NAFDAC specifications, samples of your raw
water, produced bottle water are taken for analyses in NAFDAC’s laboratories. If the
samples gotten from bottle water factory pass NAFDAC laboratory tests, they will
issue Smart Hydration a notification and we can expect our number within two
months.

8.0 EQUIPMENTS REQUIRED

8.1 GENERAL SAFETY:

 Fire Extinguishers
 Fire Blankets
 Sand Buckets

8.2 RAW WATER PRODUCTION EQUIPMENT:

a. Borehole

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 b. The submersible Water pumping Machine (1HP or more). All the pumps must
not be made from galvanized metal.
c. PVC Water Tanks (Black Color preferably). Three (3) Storage Tanks are ideal.
One tank for Raw Water storage, another for treatment process and the third
tank for post-Treatment water Storage.
d. Surface Pumping Machine (1HP or more)
e. Aeration faucets
f. PVC Pipes and plumbing fittings

8.3 WATER TREATMENT EQUIPMENT:

Completely automated combo units with RO Filter systems for water treatment.

8.4 PACKAGED BOTTLE WATER PRODUCTION EQUIPMENT:

Fully Automated Bottle Water Production Line (Automatic washing, filling & capping
combo unit)

8.5 PACKAGING MATERIALS

 Bottle Mould (for branded bottles)

 Bottles
 Bottle Caps
 Labels
 Packaging Nylon
 Hot Air Gun ( for fixing labels and cap seals)

8.6 PERSONNEL PROTECTIVE EQUIPMENT:

 Disposable Food Handling gloves (preferably powder-free polyethylene or latex)

 Hygiene Face masks
 Head Net/Cap
 Laboratory Coat/Apron

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  Rubber Boots/Clops
 Hand sanitizers

8.7 QUALITY ASSURANCE EQUIPMENT (IN HOUSE):

In house quality assurance requires at least physically checking of water products for
odor, color, particles and taste. The measurement meters such as pH meters and
conductivity meters are used to check the pH, conductivity, Total Dissolved Solids and
a few other parameters that help indicate the quality of the produces water. Full
Laboratory analyses for the water products are outsourced to IPAN registered
laboratories.

 pH Meter (hand held or bench top)

 Conductivity/TDS Meter
 Weighing Balance (from 2kg Load capacity above)
 Glass Beakers (600ml/1000ml capacity)
 Glass Measuring Cylinder (500ml capacity)
 Water Testing Kit

8.8 CLEANING & SANITATION

 Bottle Washer Brush

 Long-Handle Hard Brush (for cleaning the storage tanks)
 Food Grade Liquid Detergent
 Cleaning Mop
 Dust Brush/Sweeping Brush
 Cobweb Brush
 Disposable Wipes
 Waste Bin
 Pallets (Plastic)

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9.0 COST IMPLICATION

S/ EQUIPMENT CONDITION COST

N
1. Monoblock XGF 8-8-3 N 5,900,000
2. Pet Blower, CM 99A N 3,000,000
3. Borehole In place
4. Water tanks Brand New N 50,000
5. Safety Equipment’s Brand new N 300,000
6. RO Filter treatment 4 Membrane N 900,000
7. Business Registration and Trademark N 200,000
8. NAFDAC Registration N500,000
9. Delivery Trucks Tokunbo N 1,000,000
10. Generator In place
11. Stainless Filter 24 by 4 feet N 250,000
12. UVL Light 4 feet N 35,000
13. Steam Sterilizer N 10,000
Option One: Inclusive of Pet Blower N 12,145,000
Option two: Take out the Pet N 9,145,000
Blower
Option three: Without the truck, N 8,145,000
deliver with hired commercial
buses
10.0 STAFF COST

S/N STAFF STAFF COST (N)

Monthly
1 Production Manager 50-75,000

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 2 Quality Assurance Officer 50-75,000
3 Truck Driver 30-35,000
4 Cleaner 25-30,000
5 Loader 25-30,000
6 Packer 20-25,000
7 Motor boy 10-15,000

11.0 SALES

- Production capacity of 3,000 bottles per hour

- If the workers work for 4 hours a day

- 12,000 *4 = 48,000 bottles

- A pack contains 12bottles

12,000/12 = 1,000 packs

-A pack sells for N400

-1,000 packs * N400 = N 400,000

- If the factory opens 10 days in a month

- N400, 000* 10 = N 4,000,000 Monthly

Annually

Option one: N 4,000,000 * 12months = N 48,000, 000

Option two: If demand increases, the factory will operate for 20 days in a month

N 400,000 * 20 days = N 8,000,000 Monthly

N 8,000, 000 * 12 months = N 96,000,000

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YABA AREA MARKET ANALYSIS (A case study of Alagomeji, Tejuosho, Onike, Sabo
and Bariga axis)

Major merchants:

1. Aquarite
2. Aquafina
3. Nirvana
4. Cascade
5. Viju
6. Cway

Quantity sold per day on the average

S/N NAME QUANTITY MODE OF REASONS FOR THE

SOLD PER DAY DELIVERY SALE
(0.75 LITRE)
1 Eva Water 100 PACKS Supplied by the N100 each while
Company others are N50
2 Nestle 40PACKS Supplied by the Smaller bottle and
Company people buy in packs
most times for
office use of home
consumption
3 Aquarite 500 PACKS Supplied by the They supply
Company regularly and the
bottle looks big
4 Aquafina 300 PACKS Supplied by the They do not supply

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 Company regularly like others
5 Cascade 100 PACKS Supplied by the They hardly supply
Company to this area
6 Nirvana 500 PACKS Supplied by the Their bottle is big
Company and they supply
regularly
7 Viju 400 PACKS Supplied by the It is still new in the
Company market
8 Cway 400 Packs Supplied by the It is still new in the
Company market

RESPONSE TO A NEW BRAND

For a new brand to be accepted, the following must be in place;

1. The size of the bottle must be as big as existing ones if not even bigger.
2. The bottle must be attractive.
3. Cost of supplying to the vendors must be at least N50 cheaper per pack.
4. The water must not have any funny taste.
5. Must be ready to supply regularly unlike those that supply when they
feel like.

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APPENDIX

PET BLOWER

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POLY PRODUCTS

Head Office - Lagos

Poly Products Nig. Ltd.

Poly House, Plot C, Block 10, Ilupeju Industrial Scheme,

Lagos - Nigeria

Mobile: +234 70 1888 1111

Mobile: +234 90 2888 1111

Email: info@polyproductsnig.com

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MONOBLOCK MACHINE

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