Inmoisture-Project-Report Draft V0.1

PACKAGED DRINKING WATER
[BOTTLED WATER & SODA]
PROJECT REPORT/BUSINESS PLAN

SUBMITTED BY
Packaged Drinking Water Project Report
CONTENTS Page
No.
PROJECT REPORT 1-29
LIST OF ANNEXURES Page

No.
ANNEXURE-I STATUTORY PERMITS AND BUSINESS LICENSES 30-31

REQUIRED FOR THE PROJECT
ANNEXURE-II IMPORTANT STEPS TO START MSME BUSINESS 32-33

UNIT
ANNEXURE-III TIPS TO IDENTIFY SUITABLE PROJECT LOCATION 34-34
ANNEXURE-IV SMART TIPS TO FOLLOW IN PACKAGED DRINKING 35-36

WATER BUSINESS
HIGHLIGHTS OF THE PROJECT
Sl. Particulars Description

No.
A. Nature of the Project
1. Name of the Project/ Business PACKAGED DRINKING WATER WATER
activity proposed PLANT
2. Year-wise Capacity Utilization Yr 01 Yr 02 Yr 03 Yr 04 Yr 05
50% 60% 70% 70% 70%
B. Cost of Project
1. Land On Lease-hold
2. Civil Works & Buildings Rs. 89,00,000.00
3. Plant & Machinery (Indigenous) Rs. 110,00,000.00
4. Fixed Assets Rs. 5,00,000.00
5. Pre-operative Expenses Rs. 7,71,675.00
6. Contingency & Escalation @ 5% of Rs. 10,20,000.00

2, 3 and 4
Total Capital Expenditure Rs. 2,21,91,675.00

7. Working Capital Margin @ 30% Rs. 66,57,502.00
Total Rs. 2,88,49,177.00
C. Means of Finance
1. Term Loan from Bank @ 75% Rs. 2,16,36,883.00
2. Own Capital including Margin Rs. 72,12,294.00
Money Subsidy @ 25%
Total Rs. 2,88,49,177.00
3. Working Capital Loan @ 75% --
4. Deposits from Distributors --
(To be used as Cash Credit)
Total Investment Rs. 2,88,49,177.00.00
(Rupees Two Crores Eighty-Eight Lakhs Forty-
Nine Thousand one Seventy Seven Only.)
Page | 1
1. GENERAL INFORMATION AND LOCATION :
Name of the Unit/

Firm
Address of the
Project/Proposed
Location
Size of the Space

Available
Own/ Under
Lease Rent
Agreement
2. PROMOTER’S BACKGROUND:
Name of the
Promoter
Age
Communication
Address
Educational
Qualification
Work Experience
Special Training
Attended, If Any
Page | 2
3. PROJECT INTRODUCTION :
Rampant water, land and air pollution has taken its negative toll on the earth.
Dumping untreated waste directly into the waterways has reduced the quality of
water. It is definitely unsafe to consume water from lakes and ponds. Untreated
water is not safe for consumption. It contains germs, dust and pollutants which plays
havoc to our health. Thus, it is mandatory to drink treated and filtered water,
obtained from clean source. It is this awareness among the growing population about
the importance of safe drinking water for maintaining good health, along with a sharp
rise in per capita income is creating a demand for bottled water in India. Bottled
water is extremely convenient to carry especially for employees, traveler, and
students. It keeps them hydrated irrespective of their proximity to the water
supply. With the consumption of water increases due to the growing population, it is
quite imperative that the world would require a greater number of water purification
units. This is where the bottled water business players are benefitting from. Soda
water, also known as club soda is water containing carbon dioxide, which bubbles
out and makes the drinks tasty and peculiar. Soda water is prepared by adding high
pressure carbon-dioxide to a solution of pure water. There are around 5,735 licensed
bottlers for packaged drinking water across India, alongside uncountable unbranded
ones. However, penetration of packaged drinking water is low in rural India. Bottled
water business comprises purifying the water, bottling them for consumption and
selling them. This is evergreen business and there is place for everyone who wants
to step into this opportunity. Opening a Packaged Drinking Water plant requires quite
a substantial investment and cannot be started with low investment. If one does not
have sufficient funds and resources, then it is better to opt for dealerships or
franchise.
4. THE PROJECT PROPOSAL :
The proposed project is that of setting up of Packaged Drinking Water Plant

Business unit at the proposed location. In view of the potential market opportunity of
such units, the present Project Report has been developed with the main objective to
productively utilize the available manpower resources of the local area and to enable
uninterrupted supply of quality products to market throughout the year.
5. PROSPECT FOR INVESTMENT:
In India, the demand for bottled water is majorly due to unavailability of safe drinking
water because of enormous increase in the population, inflow of foreign students and
tourists, poor quality of tap water and ease of availability of bottled water and rise of
health awareness. As the government has failed to provide clean drinking water at all
places, private players have not just filled the gap but also created a robust
business. The best mineral water companies in India are focusing on augmenting
their market shares by implementing effective marketing strategies and attractive
packaging. The market is expected to reach US$ 60.06 billion by the end of 2023.
The major strength of India as a market is of course its population which is 17.6% of
the global population. The market for the supply of Packaged Drinking Water is wide.
In all the cities and towns of India, the product is widely accepted in offices,
restaurants, railway stations, bus stands and hospitals. Bottled water is also
available in all “A”, “B” and “C” class Retail outlets, Bakeries and Sweet shops,
Pharmacies, Petrol Pumps and through Street Hawkers. Many households have
resorted to purchasing purified water in Jars.
Page | 3
6. POTENTIAL TARGET CUSTOMERS/MARKET :
The growing population, increasing urbanization and rising consumerism has felled
the demand for FMCG products in the market. Based on distribution channel, the
Consumer market is segmented into Super Markets, Departmental Stores, General
Retail stores and others. Increasing internet penetration is also leading consumers to
buy FMCG Products through online channels thus contributing to the growth in the
Consumer market. The target market for the proposed set-up is retail stores in all the
densely populated cities and all tier II/III cities / towns across the country.
Dealing with the Distributor and Super Stockiest.
Going on live with the Social Marketing.
7. MARKET ENTRY AND MARKETING STRATEGY :
7.1. Market Entry : Due to growing population, a business dealing with

Consumer products has a less or no chance of having a bad time because unlike
everything else, people will not stop using essential household products. Therefore,
the proposed business can be started any time of the year.
7.2. Distribution : The effectiveness of distribution coverage and practice

is of paramount importance in achieving the desired sales. For a business to achieve
the desired market presence, a cost-effective distribution system having wide market
coverage is instrumental. The nature of the product or services as well as the cost
and efficiency of the distribution channel are some other factors that need to be
considered while selecting an appropriate distribution channel.
7.3. Marketing Strategy : In any business, a solid marketing strategy is

critical for building a brand, attracting new customers and maintaining loyalty.
Through marketing, customers may desire to try the products or services and this will
trigger a purchase decision. When customers are happy about the products or
services, they become the brand ambassadors by default. They will spread the word
and sales will start to increase automatically. Accordingly, if the product or service
offered is new to the market, it needs to be more aggressive and strategic.
Marketing plan of the proposed project would include the following measures;
 Marketing objective would be to enter into long term contracts with the
retailers and traders to achieve that optimum level of capacity utilization at an
early date.
 Once a few long-term contracts are established and a presence is built in the
market such that the market perceives the benefits being offered by the
service, then the incremental effort required to secure new clients would be
minimal. In addition to direct marketing to the potential clients, the business
would be advertising in trade journals and similar publications communicating
the benefits of the service and educating the customers.
 In addition to selling through retail channels, efforts would be made to

penetrate sale through online shopping channels too. This will allow regular
supply of the products from the unit for customers to shop from the comfort of
their home.
Page | 4
8. CRITICAL SUCCESS FACTORS:
Successful and sustainable operation of this MSME business unit would depend on
the following main critical factors:
 Procuring high quality raw-material and securing its regular supply in

economical price.
 Technical know-how and experience of the entrepreneur in the field is

absolutely necessary. Complete adherence to best practices is critical to the
success of this project.
 The entrepreneur should be aware of the supply and demand conditions of

the market.
 Properly trained manpower should be engaged.
 Knowledge about local environmental regulations and compliance

requirements.
 Efficient recovery of wastes and their utilization may improve operational

performance.
 Never compromise with the quality of the Products. Ensure quality

consistency and customer satisfaction in order to get a comparative
advantage.
 Need extensive marketing, distribution and effective sales management

strategies to make the business. Ability to generate work orders through
networking, direct marketing and negotiating long term contracts.
The Promoter is technically well-informed to undertake the proposed venture and

expected to run the business unit efficiently.
9. PROCESS DETAILS AND TECHNICAL ASPECT :
9.1. PROCESS DETAILS OF PACKAGED DRINKING WATER: Raw water to

be processed is pumped from the borewell and collected in storage cum
settling tanks. Raw mater is purified by assign it through sand filter and
activated carbon filter. Excess hardness is reduced by reverse osmosis and
then the softened water is passed through micron filters to make it sparkling
clear. To make it bacteria free this water is passed through ultraviolet light
radiation. Packing of the water is done by Bottling system comprising of the
facilities of Bottle rinsing, Filling and Capping. Bottled Drinking Water is
packed in the cartons. Process Flow chart is shown overleaf;
Page | 5
PROCESS FLOWCHART: The process flowchart that describes the business is

shown as follows;
Page | 6
9.2. PROCESS DETAILS OF SODA WATER : Commercial soda water in

siphons is made by chilling filtered plain water to 8 degrees Celsius, adding a
sodium or potassium based alkaline compound such as sodium bicarbonate
to reduce acidity, and then pressurizing the water with carbon dioxide, known
as Carbonation. The gas dissolves in the water, and a top-off fill of carbon
dioxide is added to finally pressurize the siphon to approximately 120 psi
(pounds per square inch).
The final stage is bottling. Several types of apparatus are available for the
purpose, the bigger ones can deal with a dozen bottles at a time, the smaller
ones with one at a time. The bottle is nearly filled up with soda-bicarb solution
and inserted into the machine. Small rubber rings and glass balls are used to
stop the mouth of the bottles. More carbon dioxide at high pressure is pumped
into the bottle, then the flow of the gas is suddenly stopped and the glass ball
flies into the rubber ring and is firmly fixed there. Now-a-days crown corks are
preferred over glass balls.
9.3. PACKAGING : Drinking water would be packed in PET bottles of

various sizes. It would also be filled in PET jars of 20 liters capacity. Soda
Water will be available in 600 ml pet bottles.
9.4. AUTOMATION : The following automation can be provided in the plant,
 The plant will automatically stop when product water tank is full (high
level).
 The plant will automatically restart when the product water tank level
reaches a certain limit (low level).
 The plant will be provided with an audio-visual alarm when the quality
of water reduces below the stipulated limit.
 The plant will trip up on supply of high voltage
9.5. QUALITY SPECIFICATIONS: Drinking water must conform to the guidelines

laid down by the World Health Organization and Bureau of Indian Standards,
which is reproduced below;
The Bureau of Indian Standards (BIS) has formulated following specifications

for Bottled Water.
IS: 13428:1998 IS 14543: 1998 : Packaged Drinking Water.
IS: 13428-1992 : Chemical & Physical requirements

of Bottled Water.
MINERAL WATER QUALITY:
pH 6.5 to 8.5
Total dissolved solids <500ppm
RAW WATER ANALYSIS:
The system is designed on the following water

parameters: Turbidity < 15NTU
Total dissolved solids 2000ppm
Page | 7
10. INSTALLED AND OPERATIONAL CAPACITY :
In assessing the proposed operational capacity, due consideration has been given to
technological and financial factors, marketing considerations, availability of
consumables, infrastructure facilities and economic viability. The detailed
requirement of the machinery and equipment’s to achieve the operational capacity
has been assessed through technical feasibility aspect. While arriving at the
requirement of various type of machinery and equipment’s required for the unit, due
considerations has been given to the following points.
a) Minimum Wastage.
b) High Efficiency.
c) Maximum flexibility in operation.
d) Adequate stock by provision wherever necessary.
The operational capacity of the business unit per annum at 100% capacity utilization
is as follows.
Outlet Water- 3,600 Liters Per Hour.
PERCENTAGE OF PRODUCT SEGMENT:
Product Percentage
500 ml Bottle PDW 20%
1 Liter Bottle PDW 60%
2 Liters Bottle PDW 10%
20 Liters Jar PDW 5%
300 ml Bottle PDW 5%
For the purpose of carrying out this economic viability of the proposed project, it is
assumed that the Unit will operate at following efficiencies (Capacity Utilization)
during the first 5 (Five) Years.
Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Capacity 50% 60% 70% 70% 70%
Utilization
Page | 8
11. RAW MATERIALS AND CONSUMABLES :
11.1. The raw materials required are as follows;
 Regeneration Chemicals
 Water
 Membrane
 Activated Carbon
 Sand
 Cartridges
 Pre-form/LDPE for Bottling
 Labels
 Dispenser Caps
 Secondary Packing Cartons & Straps
 Other Consumables etc.
Among the mentioned Raw Material and Consumables, all are easily available
locally but it is advisable to have some firm supply arrangements beforehand to
ensure timely supply. Secondary Packaging Materials will be required for packing of
finished goods.
12. POWER AND UTILITY :
12.1. POWER: The total connected load requirement of power is 150 HP for
the Project.
12.2. UTILITY: Utilities include Fuel etc. those should be available locally.
Page | 9
13. TENTATIVE IMPLEMENTATION SCHEDULE:
The period of implementation of the Business will depend on the time taken for the
sanction of financial assistance if applicable and the subsequent period of delivery of
the Machine and Raw-material Inventory from the respective suppliers. The delivery
period of the same would be 30 days to 90 days from the date of placement of firm
order. Some of the project activities shall be carried out concurrently. Based on the
above assumptions, the major activities under the tentative implementation schedule
are as follows:
ACTIVITIES TIME PERIOD
Civil Work/Arrangement of Finance

Statutory Permits and Business Licenses 1st Month- 4thMonth
Placement of Order for Machineries,
Procurement, Inspection, Equipment Layout,
Utilities and Specifications, Expediting 3rd Month– 5thMonth
Services and Other Basic Information
Recruitment of Manpower 5thMonth
Training of Workers and Trial Run
Commercial Production 6th Month
Sl. Activities/Time 1
st
2
nd
3
rd
4
th
5
th
6
th
No. (In Months) Month Month Month Month Month Month

1. Selection of Location
and Acquisition of
Premises
2. Civil Work/ Repairing
Work, Power
Connection and
Electrification
3. Application and
Arrangement of
Finance, Application
and Obtain Statutory
Permits and
Business
Licenses
4. Placement of Order for
Machine and Raw
Materials
5. Inspection,
Procurement, Lay out &
Expediting Services of
Equipment’s
6. Recruitment of
Manpower and Training
7. Inauguration and
Commercial Operation
Page | 10
14. BASIS & PRESUMPTIONS:
While deriving figures and projections in this Project Report, following Basis and
Presumptions have been made.
14.1. The project is based on a single shift basis and 300 days of working schedule
in a year, working for 10 hours a day, 25 days a month.
14.2. The project cost and other projections etc. have been made on present
market conditions and the sources available within our sources only and
therefore it may vary on account of market fluctuations and with different
suppliers and qualities.
14.3. Premises is assumed to be owned or occupied on lease hold basis.

14.4. The cost of machinery and equipment/materials indicated refer to a particular
make and the prices are approximate to these prevailing at the time of
preparation of this report.
14.5. Contingencies and Escalation has been considered on Civil Work, Plant &
Machineries and Fixed Assets to provide safeguard against escalation of
prices or any other unforeseen expenditure.
14.6. Power rate is assumed at Rs.6.70 per unit and monthly fixed rental
charges. Water would be available
14.7. Manpower requirement for the project has been planned considering the size
of the unit. The Salaries/Wages are taken as per prevailing rates in this type
of industry.
14.8. Interest rate is considered 15.00% on Term loan and 16% on Working capital
loan for financial assistance. For repayment, a period of 5 years is planned.
14.9. Insurance charges have been considered Lump Sum.

14.10. Repair and maintenance have been calculated at reasonably.
14.11. Depreciation shown has been calculated on Straight Line Method.
14.12. Non-refundable deposits, Fees for Preparation of Detailed Project Report,

Professional Consultancy fees, Traveling & Convenience amount, Know-how
& Engineering fees, Application processing fees, trial production fees etc. are
considered under pre-operative expenses.
14.13. Break Even Point is calculated on optimum year of production.
14.14. At the plant site, availability of unskilled labor is not a problem. Skilled and
unskilled labor can be recruited for operating the plant. Initial training will be
required for smooth and efficient running of the plant. It is felt that the skilled
manpower available locally having some experience in operation can be
recruited to satisfy the manpower need.
14.15. Project would be set up at a site that is well connected by road and there will
be uninterrupted supply of power and adequate availability of water without
any difficulty at the project site.
Page | 11
15. CAPITAL INVESTMENT ESTIMATES :
15.1. FIXED CAPITAL
15.1.1. LAND AND SITE DEVELOPMENT
Total Area Available: Square Feet; Covered Area: Square Feet
Particulars Area
Rate (Rs.) Amount (Rs.)
(Sq. Ft)
Site Development, Approach Road, Nil
-- --
Boundary etc. (Own Space/ On Lease)
Say (Rs. in Lacs) 0.00
15.1.2. BUILDING AND CIVIL WORKS
Details of Building and Civil Works are given below;
Sl. Particulars Unit Cost (Rs.) Amount (Rs.)

No.
1. Land On Lease Hold
2. Civil Work, Building -LS- 60,00,000.00
Construction, Drainage etc.
(6,000 Square Feet)
3. Bore Well and Ground Storage -LS- 6,00,000.00
Tank Cost
4. Electrical Installation Charge & -LS- 23,00,000.00
Electrification
Total Rs. 89,00,000.00
15.1.3. PLANT AND MACHINERY
Details of Plant and Machinery are given below;
Particulars Qty. Rate (Rs.) Amount (Rs.)

Complete Plant and Machinery 1 Set -- 90,00,000
Sub total 90,00,000
Add: Taxes, Transportation and Installation etc. 20,00,000
TOTAL 110,00,000
Say (Rs. in Lacs) 110.00
Page | 12
15.1.4. MISCELLANEOUS FIXED ASSETS
Details of Miscellaneous Fixed Assets are given below;
SL. Particulars Amount (Rs.)

No.
1. Furniture’s & Fixtures 50,000.00
2. Tools, Equipment’s & Containers 50,000.00
3. 20 Liters Jar 2,000 Nos. @ Rs. 3,00,000.00
150/- Per Jar
4. Misc. Equipment’s 1,00,000.00
Total Rs. 5, 00,000.00
15.1.5. CONTINGENCIES AND ESCALATION
Contingencies and Escalation has been assumed @ 2% of the Building & Civil
Works, Plant & Machinery and Miscellaneous Fixed Assets expenses.
15.1.6. PRELIMINARY AND PRE-OPERATIVE EXPENSES
Details of Preliminary & Pre-operative Expenses are given below;
SL. Description Amount (Rs.)

NO.
1. Market Survey, Detailed Project Report, 2,50,000.00
and Architecture’s Fees etc.
2. BIS Charge 1,70,515.00
3. Project Consultancy Fees 2,50,000.00
4. Non-Refundable Deposits 51,160.00
5. Misc. Pre-operative Exp 50,000.00
Total Rs. 7, 71,675.00
Page | 13
15.2. WORKING CAPITAL
15.2.1. RAW MATERIALS INCLUDING CONSUMABLES/ PACKAGING
Total expenses on Raw materials and Consumables at 100% capacity utilization are
estimated as below;
Sl. Particulars Numbers/ Amount (Rs.)

No. Unit Price
(Rs.)
1. Cost of Water 3600 KL @.04 1,44,000.00
Per Liter
2. Regeneration Chemicals and -LS- 1,56,000.00
Consumables like Sand,
Activated Carbon, Cartridges
and Membrane etc.
3. Pre-form, Cap, Label etc. for 10.8 Lakhs 32,40,000.00
Bottles Bottles @
Rs.3
average
4. Cap & Label Expenses for 20 15000 Jars 30000.00
Liters Jar @
2 per Jar
5. Shrink Wrapping @ 0.35 per 105000.00
case
Total Rs. 36,75,000.00
15.2.2. MANPOWER
Total expenses on Manpower Salary in the 1st year are estimated as given below. It
is assumed that salary expenses will increase @ 10.0% every subsequent year;
SL. Personnel’s Numbers Salary Per Amount Per

No. Month (Rs.) Month (Rs.)
1. Production Manager 1 25,000.00 25,000.00
2. Accountant cum Store 1 10,000.00 10,000.00
Keeper
3. Analytical Chemist 1 12,000.00 12,000.00
4. Micro-biological 1 12,000.00 12,000.00
Chemist
5. Assistant Manager 1 20,000.00 20,000.00
(Marketing & Sales)
5. Sales Executives 4 15,000.00 60,000.00
6. Machine Operators 2 20,000.00 40,000.00
7. Skilled Workers 5 10,000.00 50,000.00
8. Un-skilled Workers 5 6,000.00 30,000.00
9. Security Staffs 2 12,000.00 24,000.00
25 Total 2,83,000.00
Fringe Benefits @ 20% 56,600.00
Grand Total 3,39,600.00
Page | 14
15.2.3. POWER AND UTILITY
A total expense on Power and Utility at 100% Capacity Utilization is estimated as

below;
1. Total Connected Load = 110.3 KW
2. ITEMISED OPERATION (100% Capacity Utilization)
A) Machine Plant =99.3 KW

10 Hrs. Per Day = 99.3 KW X 10 Hrs. X 25 days = 24,825 KW
B) Light/Fan/Pump/Motor = 11 KW
10 Hrs. Per Day = 11 KW X 10 X 25 days = 2,750 KW
Total = 27,575 KW
With Power Factor .90
Conversion into Units 24,818.00 KW
Cost of Power Rs. 6.7 Per Unit
= Rs. 1,66,281.00
Fixed Rate @ Rs. 275 Per KW Per Month
Rs. 275 X 110.3 KW X 1 Month Rs. = Rs. 30,333.00
Total = Rs. 196,614.00
Total Monthly Power Cost. Rs.1 , 96,614.00
Total Annual Power Cost Rs. 23, 59,368.00
Hence, Estimates at Various Capacity Utilizations;
Year 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
Capacity 50% 60% 70% 70% 70%
Utilization
Total
Annual
Power 11,79,684.0 14,15,620.0 16,51,557.0 16,51,557.0 16,51,557.0
Cost 0 0 0 0 0
(Rs.)
Page | 15
15.2.4. REPAIR AND MAINTENANCE
A total expense on Repair and Maintenance in the First year is estimated as given
below. It is assumed that expenses on Repair & Maintenance will increase @ 2%
every subsequent year.
1. Repair and Maintenance Cost – Repair and Maintenance expenses have

been assessed by charging 2% on building and 2% on machineries and other
fixed assets.
Hence, Maintenance of Building Shed @ 5% is Rs. 200,000.00
Maintenance of Plant & Machinery @ 5% is Rs. 500,000.00
Maintenance of Fixed Assets @ 5% is Rs. 100,000.00

Hence, Total Repair and Maintenance Expenses is Rs. 600,000.00
Expenditure on this account has been provided a 5% rise every year.
Hence, Estimates at Various Capacity Utilizations;
Capacity 50% 60% 70% 70% 70%
Utilization
Total Annual
Repair & 300,000.00 3,78,000.00 4,41,000.00 4,41,000.00 4,41,000.00
Maintenance
Cost (Rs.)
Page | 16
15.2.5. ADMINISTRATIVE EXPENSES
SL. Item Amount (Rs.) Per Amount (Rs.)

No. Month Per Annum
1. Rent 63000.00 7,56,000.00
2. Stationeries, Printing, 6,000.00 72,000.00
Postage and Telegraphs etc.
3. Telephones/ Fax 5,000.00 60,000.00
4. Selling/ Advertisement 100,000.00 12,00,000.00

Expenses
5. Professional fees, Legal 5,000.00 60,000.00
fees, Audit fees, Filing fee
etc.
6. Miscellaneous Expenses 10,000.00 120,000.00
Total Rs. 1,89,000.00 Rs. 22,68,000.00
16. COMPUTATION OF WORKING CAPITAL REQUIREMENT :
Details of Working Capital Requirement are given below.
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
and Stock
Period 50% 60% 70% 70% 70%
Raw Material 18,37,500.00 22,05,000.00 25,72,500.00 25,72,500.00 25,72,500.00
(1 Month)
Operating 3,85,837.00 4,63,005.00 5,40,171.00 5,40,171.00 5,40,171.00

Expenses
(1 Month)
Finished 2,36,960.00 2,74,969.00 3,13,005.00 3,14,090.00 3,15,196.00
Goods
(5 Days)
Receivables 1,78,240.00 1,50,187.00 1,21,969.00 1,15,462.00 1,08,826.00
(-LS-)
Total 26,38,537.00 30,93,161.00 35,36,693.00 35,36,693.00 35,36,693.00
Working
Capital
Required
Page | 17
17. ESTIMATED COST OF THE PROJECT :
The estimated Project Cost is given below;
SL. Particulars Amount (Rs.)

No
1. Cost of Civil Works & Building 89,00,000.00
2. Cost of Plant & Machinery 110,00,000.00
3. Misc. Fixed assets 5,00,000.00
4. Preliminary & Pre-operative 7,71,675.00
Expenses
5. Contingency & Escalation @ 5.00% 10,20,000.00
of 1, 2 and 3 above
6. Working Capital Margin @ 25% 66,57,502.00
Total Project Cost 2,88,49,177.00
Total Cost of Project: Rs. 2,88,49,177.00.00

(Rupees Two Crores Eighty-Eight Lakhs Forty Nine
Thousand one Seventy-Seven Only.)
18. PROPOSED MEANS OF FINANCING :
The Proposed Means of Finance for the project is estimated as below;
Particulars Percent Amount (Rs. Lacs)
DEBT
Loan from Banks/ FIs
75% 216.37
EQUITY
Own Capital including Margin Money
Subsidy from Central/ State Govt. 25% 72.13
TOTAL 100% 288.50
Total Cost of Project: Rs. Rs. 2,88,49,177.00.00

(Rupees Two Crores Eighty-Eight Lakhs Forty Nine
Thousand one Seventy-Seven Only.)
Page | 18
19. ESTIMATED ANNUAL SALES TURNOVER :
Total Annual Sales Turnover at 100% Capacity Utilization is estimated as below;
Average Ex-Factory
Bottle Sizes Price Per Unit (Rs.)
500 ML Bottles 5.00
1 Liter Bottles 8.00
2 Liter Bottles 14.00
20 Liter Jars (Refundable Jars) 20.00
300 ML Bottles 4.00
Annual Sales Turnover at 100% Capacity Utilization Rs. 10,88,64,000.00
Hence, Estimates at Various Capacity Utilizations.
Capacity 50% 60% 70% 70% 70%
Utilization
Total
Annual 5,44,32,000.00 6,53,18,400.00 7,62,04,800.00 7,62,04,800.00 7,62,04,800.00
Income
(Rs.)
Page | 19
20. PROJECTED PROFITABILITY STATEMENT :
(Amount in Rs. ‘000 thousands)
Year 01 02 03 04 05
1. Capacity 50% 60% 70% 70% 70%
Utilization
2. Earnings 21,600.00 25,920.00 30,240.00 30,240.00 30,240.00
2.1. Loss Due 216.00 259.20 302.40 302.40 302.40

to Damage
(1%)
2.2. Net Sales 21,384.00 25,660.80 29,937.60 29,937.60 29,937.60
Cost of Production
3.1. Raw 10,800.00 12,960.00 15,120.00 15,120.00 15,120.00
Material
3.2. 960.00 979.20 998.78 1,018.76 1,039.14
Administrative
Expenses
3.3. Manpower 2,166.60 2,209.93 2,254.13 2,299.22 2,345.20
Expenses
3.4. Power & 291.00 349.20 407.40 407.40 407.40
Utilities
3.5. Repair & 148.78 151.76 154.79 157.89 161.04
Maintenance
Total 14,366.38 16,650.09 18,935.10 19,003.27 19,072.78
Operative
Expenses
3.6. Interest on 858.00 793.00 663.00 533.00 403.00
Term Loan
3.7. Interest on ----- 189.00 210.00 210.00 210.00
Working
Capital Loan
Total Financial 858.00 982.00 873.00 743.00 613.00
Expenses
Total Cost Of 15,224.38 17,632.09 19,808.10 19,746.27 19,685.78
Operation
4. Preliminary 32.49 32.49 32.49 32.49 32.49
Expenses
Written Off
5. Royalty @ 1,283.04 1,539.65 1,796.26 1,796.26 1,796.26
6% of Net
Sales
6. Govt. 150.00 150.00 150.00 150.00 150.00
Charges
7. Promotional 427.68 513.22 598.75 598.75 598.75
Expense @ 2%
8. Profit 4,266.41 5,793.35 7,552.00 7,613.83 7,674.32
Before Tax &
Depreciation
Page | 20
9. 720.65 720.65 720.65 720.65 720.65
Depreciation
10. Profit 3,545.76 5,072.70 6,831.35 6,893.18 6,953.67
Before Tax
11. Taxes 1,069.20 1,283.04 1,496.89 1,496.89 1,496.89
12. Net Profit 2,476.56 3,789.66 5,334.46 5,396.29 5,456.78
13. Net Cash 3,197.21 4,510.31 6,055.11 6,116.94 6,177.43

Accruals
14. Cumulative 2,476.56 6,266.22 11,600.68 16,996.97 22,453.75
Profit
21. CALCULATION OF INTEREST AMOUNT :
Year 01 02 03 04 05
Term 6,600.00 6,100.00 5,100.00 4,100.00 3,100.00

Loan
Interest On 858.00 793.00 663.00 533.00 403.00

Term Loan
@13.00%
Working -- 1,350.00 1,500.00 1,500.00 1,500.00

Capital
Loan
Interest on -- 189.00 210.00 210.00 210.00

Working
Capital
Loan
@14.00%
Total 858.00 982.00 873.00 743.00 613.00
Interest
Expenses
Page | 21
22. DEPRECIATION SCHEDULE :
Depreciation has been calculated by straight line method. The details of calculation
are given below.
ASSET VALUE FOR DEPRECIATION
Pre-operative expenses to the extent of Rs. 324.89 thousand will be written

off and Rs. 487.33 thousand will be capitalized.
Original Value Share of Share of Total

Preliminary Exp. Contingency
Building 1,500.00 187.33 50.00 1,737.33
Machinery 5,439.00 200.00 90.00 5,729.00
Fixed Assets 500.00 100.00 8.78 608.78
DEPRECIATION STRAIGHT LINE METHOD
Item Rate Depreciation
1. Building 5% 86.87
2. Machinery 10% 572.90
3. Fixed Assets 5% 60.88
720.65
Page | 22
23. TERM LOAN REPAYMENT SCHEDULE :
Duration of Term Loan repayment has been considered for a period of 7 Years after
moratorium period of 6 Months with equal monthly instalments. The details of
calculation are given below.
Months Amount Repayment Balance at Interest @

Outstanding Amount the end of 13%
(Rs.) the Period (Rs.)
(Rs.)
6th Month 6,600.00 -- 6,600.00
th
12 Month 6,600.00 500.00 6,100.00 858.00
18th Month 6,100.00 500.00 5,600.00

24h Month 5,600.00 500.00 5,100.00 793.00
30th Month 5,100.00 500.00 4,600.00

36th Month 4,600.00 500.00 4,100.00 663.00
42nd Month 4,100.00 500.00 3,600.00

48th Month 3,600.00 500.00 3,100.00 533.00
54th Month 3,100.00 500.00 2,600.00

60th Month 2,600.00 500.00 2,100.00 403.00
66th Month 2,100.00 500.00 1,600.00

72nd Month 1,600.00 500.00 1,100.00 273.00
78th Month 1,100.00 500.00 600.00

84th Month 600.00 500.00 100.00 143.00
90th Month 100.00 100.00 --- 13.00
Page | 23
24. DEBT SERVICE COVERAGE RATIO :
Particulars 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
A. Cash Accruals
1. Net Profit 2,476.56 3,789.66 5,334.46 5,396.29 5,456.78
2.Depreciation 720.65 720.65 720.65 720.65 720.65
3. Total Interest 858.00 982.00 873.00 743.00 613.00
4. Govt. Charges 150.00 150.00 150.00 150.00 150.00
Total 4,205.21 5,642.31 7,078.11 7,009.94 6,940.43
B. Debt-Service Requirements
1. Repayment of Term Loan 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
2. Total 858.00 982.00 873.00 743.00 613.00

Interest
3. Govt. Charges 150.00 150.00 150.00 150.00 150.00
4. Royalty 1,283.04 1,539.65 1,796.26 1,796.26 1,796.26
Total 3,291.04 3,671.65 3,819.26 3,689.26 3,559.26
DSCR 1.51 1.54 1.85 1.90 1.95
Average DSCR = 1: 1.75
Page | 24
25. BREAK-EVEN ANALYSIS:
(AT 50% CAPACITY UTILISATION ON FIRST YEAR)

Net Annual Sales Revenue : Rs. 21,384.00
Variable Expenses:
a) Raw Material : 10,800.00
b) Power : 291.00
c) Manpower (60%) : 1,300.00
d) Administrative Ex.(60%) : 576.00
e) Promotion & Royalty : 1,710.72
f) Taxes : 1,069.20
------------------------------------------------------------
15,746.92
Contribution : Rs. 5,637.08
Semi-Variable Cost and Fixed Cost:
a) Interest & Govt. Charge : 1,008.00
b) Depreciation : 720.65
c) Repairs & Maintenance : 148.78
d) Administrative Expenses : 384.00
(40%)
e) Manpower (40%) : 866.64
3,128.07
3,128.07 X 50
BEP=
-------------------------------------------------------------------
5,637.08
= 27.75%
Page | 25
26. RATE OF RETURN :
(AT 50% CAPACITY UTILISATION ON FIRST YEAR)

A) On Total Investment
Net Profit X 100 2,476.56 X 100

=--------------------------------- =-------------------------------
Total Investment 10,000.00
= 24.77%
B) On Total Earnings
Net Profit X 100 2,476.56 X 100

=--------------------------------- =-------------------------------
Total Net Sales 21,384.00
= 11.58%
Page | 26
27. PROJECTED CASH FLOW STATEMENT :
(Amount in Rs. ‘000 Thousands)
Sl. Description 00 Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
No. Construction
Period
A. Sources of Fund
1. Profit Before 5,836.80 7,744.35 9,650.61 9,582.44 9,512.93
Interest & Tax
2. Depreciation 720.65 720.65 720.65 720.65 720.65
Add Back
3. Increase in 2,200.00 -- -- -- -- --
Equity
4. Increase in 6,600.00 -- -- -- -- --
Term Loan
5. Increase in --- -- 1,400.00 200.00 -- --
Cash Credit
6. Increase in --- 1,200.00 -- -- -- --
Security from
Distributors
7. Pre. Ex. W/O --- 32.49 32.49 32.49 32.49 32.49
Total 8,800.00 7,789.94 9,897.49 10,603.75 10,335.58 10,266.07
B. Disposition of Fund
1. Preliminary & 324.89
Pre-operative
Expenses
2. Capital 8,075.11
Expenditure
3. Increase in 400.00 1,200.00 200.00 200.00 -- --
Current Assets
4. Repayment of -- 500.00 1,000.00 1,000.00 1,000.00 1,000.00
Term Loan
5. Interest & Govt. -- 1,008.00 1,132.00 1,023.00 893.00 763.00
Charge Paid
6. Taxes -- 1,069.20 1,283.04 1,496.89 1,496.89 1,496.89
7. Royalty -- 1,283.04 1,539.65 1,796.26 1,796.26 1,796.26
Total 8,800.00 5,060.24 5,154.69 5,516.15 5,186.15 5,056.15
C Opening -- -- 2,729.70 7,472.50 12,560.10 17,709.53

Balance
D Surplus during -- 2,729.70 4,742.80 5,087.60 5,149.43 5,209.92
the Year
E Closing -- 2,729.70 7,472.50 12,560.10 17,709.53 22,919.45
Balance
Page | 27
28. PROJECTED BALANCE SHEET :
Sl. Description 00 Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
No.
Construction
Period
Liabilities
1. Equity 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
2. Reserve & -- 2,476.56 6,266.22 11,600.68 16,996.97 22,453.75
Surplus
3. Term Loan 6,600.00 6,100.00 5,100.00 4,100.00 3,100.00 2,100.00
4. Cash Credit -- -- 1,400.00 1,600.00 1,600.00 1,600.00
5. Security -- 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
from
Distributors
Total 8,800.00 11,976.56 16,166.22 20,700.68 25,096.97 29,553.75
Assets
1. Net Fixed 8075.11 7,354.46 6,633.81 5,913.16 5,192.51 4,471.86
Assets
2. Pre- 324.89 292.40 259.91 227.42 194.93 162.44
operative
Expenses
3. Current 400.00 1,600.00 1,800.00 2,000.00 2,000.00 2,000.00
Assets
4. Cash & -- 2,729.70 7,472.50 12,560.10 17,709.53 22,919.45
Bank
Total 8,800.00 11,976.56 16,166.22 20,700.68 25,096.97 29,553.75
Page | 28
29. INTERNAL RATE OF RETURN :
Year Cash Outflow Cash In Flow Net Cash Flow
00 Year 8,075.11
1st Year 1,600.00 3,197.21 1,597.21
2nd 1,800.00 4,510.31 2,710.31
Year
3rd Year 2,000.00 6,055.11 4,055.11
4th Year 2,000.00 6,116.94 4,116.94
5th Year 2,000.00 6,177.43 4,177.43
Average Yearly Cash Inflow : 3,331.40
Internal Rate of Return : 24.24%
30. PAY BACK PERIOD :
YEAR CASH OUTFLOW CASH INFLOW CUMULATIVE C I
00 10,000.00 ------------------- -------------------
01 --------------------- 3,197.21 3,197.21
02 --------------------- 4,510.31 7,707.52
03 --------------------- 6,055.11 13,762.63
04 --------------------- 6,116.94 19,879.57
05 --------------------- 6,177.43 26,057.00
Hence Simple Pay Back Period = 2 Years and 5 Months (Approx.)
Page | 29
ANNEXURE- I
STATUTORY PERMITS AND BUSINESS LICENSES

REQUIRED FOR THE PROJECT
While starting a business, one needs to obtain several permissions and licenses
from different authorities. The various statutory permits/clearances and business
licenses required for compliance is mentioned below: –
 First of all, determine the ownership pattern/form of your business

structure. There are 6 options available namely- Sole proprietorship,
Partnership, One person company, Limited liability partnership, Private limited
company and Public limited company. Choose the most suited business
structure as per your scale of business and resources. Accordingly, register
the business.
 Decide a Name to the Business Farm.
 Contract of Lease- One might need to obtain Premises/commercial space to

conduct his business. For this, the owner of the business has to prepare a
contract of lease with the landlord. Proceeding without entering into this
contract is like inviting legal trouble. This contract is governed by the Rent
Control Act enacted by the states. A lease contract for a commercial space is
essentially different from that for a residential house. Hence, it must contain
clauses such as:
o Base rent, deposit, maintenance charges
o Alteration of structures
o Right to sublease
o Working hours on the property
o Consequences of breach of contract
o Terms and conditions of renewal
o Code compliance
o Name and Address of both tenant and landlord
o Amount of payment
 Open a Current Account with any recognized/government registered Bank.
 Obtain Pan Card.
 Apply for the Trade License from the Municipal Authority/ Local Authority.
Documents required for obtaining trade license;
 Pan Card.
 A bank statement of the establishment of the trade.
 Certificate of establishment.
 Premises proof in the form of either electricity bill, water bill or sale
deed.
 Color photograph, ID proof and Address Proof of the
owner/partners.
 Front facing photograph of the trading business with goods that are
traded in proper display.
 Apply online for MSME Udyam Registration.

Page | 30
 Obtain the GST Registration. Every business is required to pay tax and
register itself under GST, as it deals with the sale of goods. On registration,
the project will get a GSTIN, a 15 digit code which is a unique GST
identification number.
 Obtain FSSAI License- Food Safety and Standards Association of India

(FSSAI) is the authority that grants license for food related businesses in
India. The FSSAI is responsible for protecting and promoting public health
through the regulation and supervision of food safety and is a mandatory
registration/ license for business entities that engage in food and related
activities. The license can be obtained for a period of one to five years
depending on the necessity and is subject to renewal post expiration. The
FSSAI registration/certification has to be mentioned on the packaging and the
invoice generated. In this emerging market, a mindful customer will definitely
appreciate this certification as it will help in building the confidence of the
customer in the brand.
Procedure: The procedure for application is online and varies a little depending
on the type of application and also includes an online payment to be made as
registration charge, thus generating a Challan and the registration is generated
post verification by the concerned authorities. FSSAI application or a registration
is carried out by the submission of the necessary documents to the designated
authorities and includes the submission of Form A and B.
 Apply for BIS Certification of the Bureau of Indian Standards (BIS) as is

amended from time to time pertaining to quality, safety and performance.
 Medical Certificate for Workers - The owner of the firm must obtain health
reports of each employee. The owner needs to ensure that the workers are
not suffering from any communicable disease. Otherwise, the health
department will not give the license.
 Apply for the „Consent to Establish‟ and “Consent to Operate” from the
Pollution Control Board.
 Fire Safety Permit/NOC from the State Fire Department – There will be
some types of equipment’s which can easily catch fire easily, therefore Fire
and safety license is also a must for while initiating any business . This Fire
Safety Certificate can be obtained from the Fire department.
 Trade Mark Registration –As the market for business grows further, the
competition will also grow. Obtaining a trademark registration will not only
help the business to create its unique identity in the market but will also aid in
the protection of its brand. The owner of the business must file an application
for registration of the name, style or logo as its intellectual property with which
its brand could be identified and which could not be used by any other brand.
An important aspect of running a tension-free business is to obtain requisite licenses

that are required as per the laws of the local administration. Therefore, approach the
local competent authorities to get those permits and licenses.
Page | 31
ANNEXURE-II
IMPORTANT STEPS TO
START MSME BUSINESS UNIT
Let us discuss about some of the important steps in setting up of the business.
1. Preparing a Plan of Action: Once you have decided to establish your

business unit, you will have to prepare a plan of action. You will have to decide in
advance each and every step you are going to take in that connection till it starts
functioning. It will be helpful in avoiding delay at the initial stages of starting
business. Determine need of the proposed business in your local area and how
much of these needs have already been supplied. If you realize that there is still
opportunity to fill the prevailing demand and supply gap so discovered in the
market. Make a careful study on how to go about your plans and execute them.
You can seek advice from other people who are in the same business and get
good ideas.
2. Consult with Professionals/ Experts related to the Business : It is

advisable to talk to Machinery suppliers and industry professionals before
choosing the type of operational facilities for the business. Besides, to help with
several major segments of your business plan, consult with specialist consultants.
Though fees are payable, however, their knowledge may spare you considerable
hardship. Their judgement is by no means flawless, yet they reduce the odds of
making the wrong choice. You can reduce the gaps in your knowledge,
experience and increase your chance of success by relying on other people’s
experience. The knowledge will give you a clear picture of what you need and
expect from the business.
3. Secure a Location: Location plays an important role in this business. The

ideal location for such business is one that is easily accessible to transportation
facilities, since vehicles will be required to transport raw materials and finished
goods. In addition, when choosing a location for commercial purpose, one must
consider the factors related to availability of electricity and other utilities those are
crucial for the day-to-day operation of the business.
4. Register Your Business and obtain Permissions/Licenses: An important

aspect of running a business is to obtain requisite licenses that are required as
per the laws of the local administration. The list of Statutory Permits and Business
Licenses required for the business has been already discussed in the earlier
section of this Report. Therefore, approach the local competent authorities and
get those permits and licenses.
5. Purchase the Required Plant and Equipment’s: By referring to this Project

Report only, one can get the detail information of the required plant and
machineries. One can also refer internet to learn about the same. Get the quotes
from the reputed machinery suppliers. Choosing the right machinery is an
important part of the overall performance of the business. In addition, check the
price, customer feedbacks and warranty periods. Ask the machinery supplier for
on-site training.
Page | 32
6. Hiring and Training of Employees: Hiring employees depend completely on

the size and requirements of the business. There will be requirement of machine
operators and laborers for loading/unloading work at the premises. The owner
should make sure that the machine operators are properly trained for highest level
of efficiency. The laborers should be motivated to handle workload and cater to
the work-orders comfortably even under work-pressure.
7. Procuring Raw-material : Raw materials are an important input for

maintaining production round the year. Raw materials are primarily required in
huge quantities to successfully run a packaging/processing business. To
maintain continuity of production, raw materials must be available in adequate
quantity and in nearby areas. On the other hand, non-availability may result in
production hold-ups, idle machine and manpower. For essential imported raw
material whose lead time are large proper planning is all the more essential. The
advice of DIC, SISI and NSIC can also be sought in this regard. Therefore,
material procurement plan should be decided in advance for ensuring their
sources of supply.
8. Target Market: Market size matters a lot. You can’t plan a strategy or make an
investment without understanding key facts about the target market. Do your
research and start by looking for options to sell your product at. Get your hands on
the available documents you can get that can help you in the business. Carefully
do this process, a type of market option you choose can determine how you would
gain.
9. Marketing: Marketing informs target customers about the products or services

the business is offering them. Through marketing, the customers get to know
about the value of the products, their usage and additional info that might be
helpful to the customers. It creates brand awareness and makes the business
stand out. There’s stiff competition in the market and one need to be a constant
voice to convince the customers. Inform your customers of discounts and other
competitive tricks you intend to use.
10. Quality Check and Control: Unwanted adulteration can creep in at various.
stages of business and can lower the quality of the end product. Hence, a periodic
quality check is indispensable to any business setup. All the precautionary
measures should be practiced to ensure good quality control.
Page | 33
ANNEXURE- III
TIPS TO IDENTIFY SUITABLE PROJECT LOCATION
For any project planning process first step is the identification of Project Site on
which the physical facilities are to be built up. Selection of site for any project has
great impact on the utilization of facilities, layouts and design. While selecting the
site, care should be taken to select a site at an elevation free from inundation and
well connected by road and other communication facilities to both production and
consumption centers.
Therefore, while selecting a location for the business, the following factors should be
duly considered;
1. Approachability and Accessibility.
2. Closeness to the Raw Material Market.
3. Proximity to the Consumers Market.
4. Adequate Power and Water supply.
5. Social Infrastructure Available.
6. Availability of insurance facility.
7. Equipment’s Security.
8. Availability of the mode of transportation to rapidly transport the materials.
9. Favorable under soil bearing conditions and good surface drainage.
10. The favorable business environment around the site.
Page | 34
ANNEXURE- IV
SMART TIPS TO FOLLOW

IN PACKAGED DRINKING WATER BUSINESS
Smart tips to follow while starting/running a Packaged Drinking Water business are
as follows;
A. Best Marketing Areas:
1. Schools, Colleges and Offices – If you desire to get a steady stream of

orders, then these areas will be ideal. The regular attendance in schools,
colleges and offices is high. If you crack a deal to supply purified water from
your company to these places, your turnover will increase.
2. Malls, Fairs, Events – As the footfall in big malls, movie auditoriums, fair and
events us high, setting up stalls in these places will ensure high sale.
3. Restaurants and Café – There is no way to ensure that the quality of water,
served at the cafes and restaurants is good. So, most people go for mineral
bottled water. A deal with café and restaurant owners will also prove to be
beneficial.
4. Beverage and Grocery stores – Make sure that your water is available in all
beverage and grocery stores. This will increase exposure and salability of the
product.
5. Sell at domestic level – Many health-conscious people try to cook food in

mineral water. They opt for 20-liter water jars. Thus, selling these purified
water jars at domestic level will boost your sale.
B. Promotional Tips for Better Business:
1. Online Advertising – Today, online representation is a must for any

company. If reputed agencies are taking assistance of online promotion, then
it is a must for a person, just starting out in the business as well.
2. Traditional Advertising – Apart from online promotions, you can also

harness the power of traditional media. Audio media (radio), audio – video
media (television) and print media will offer your product positive exposure
and promotion.
3. Making use of social media – Social networks are potent platforms for
getting in touch with the target clients. Maintaining a separate account for the
brand will keep people posted about the upcoming events and launches. It
also increases exposure that is a must for promotion and business.
4. Distribution of Pamphlets – If you are manufacturing and selling mineral

water under your own brand name, then distributing handouts, and offering
free samples to people will come in handy to create a hype in the market. It
must be done before the actual launch of your product.
Page | 35
5. Promotional Hoardings and Banners – Putting up promotional hoardings

and banners, in places where a large number of people can see it, will
increase the chances of your brand’s exposure.
C. Risks and Management :
1. Preventing underground Water Pollution – As these plants depend on

ground or underground water sources, and waste water is drained out, steps
must be taken to prevent any risk to these natural water sources.
2. Safe storage of Fuel and Chemicals – The commercial water purification

plants use a number of chemicals. The machines also run on fuel. Better care
must be taken to store these chemicals and fuel, to keep risks and accidents
at bay.
3. No faulty storage of Products – A lot depends on the storage facility. If the

storage areas are not clean, then the packaged water can turn bad in no time.
Risks can be averted by paying attention to capping, sealing, boxing and
boxing activities.
4. Adequate Quality Control – Another risk, closely associated with the mineral
water business is inability to maintain high quality of water. It is the
responsibility of the R&D department to carry out batch tests to make sure
that purification and addition of preservatives have been done accurately.
D. Waste Management :
The bottled water manufacturing plants generate a high percentage of liquid

waste on daily basis. The effluents have high potential to increase soil and
water pollution. To prevent environmental degradation, these waste products
must be treated. The plants must ensure that only treated wastes are going
out in the sewage drains. The slant of main drains, going out of the plant,
must be adequate. These drains must be covered, and should not be placed
adjacent to water processing and packaging units. Back run of dirty water, into
the plant must be stopped at all costs. Chemicals must not be stored
alongside bottled water boxes.
It is necessary to create awareness among people. But hoping that everyone

will readily purchase a bottle of mineral water is not right. Drinking packaged
water is not the only option. Boil and strain water before consumption. It will
kill germs, as well as remove insoluble particles from the water. One should
never take chances with his/her health. Those who can afford it must stick to
consuming treated mineral water.
Page | 36
PROJECT REPORT/ BUSINESS PLAN
This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to
Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation
and Finally Printing the Report) to be presented as a Ready Project Proposal immediately under any
Central/State Govt. Self-Employment Schemes as well as Business Loan Schemes under SC-STs/PSU Banks/
NBFCs/ MFIs/Private Banks thereby saving precious time of the promoter in the process of completing requisite
formalities in anticipation of setting up the business project.
The Report so presented assumes an ideal scenario of an economy sized unit but flexible provisions are there for
editing, customising calculations, modifying estimations as per personal preferences. Accordingly, following
Project Templates has been deliberately left blank in order to facilitate customisation by the perspective
entrepreneurs based on personal requirements and furnish necessary information on actual basis.
 Project at a Glance : To be Filled Up as per Personal Requirements.

[Total Capital Expenditure, Working Capital, Estimated Cost of the Project, Amount of Bank Loan, Amount
of Equity Capital and Amount of applicable Margin Money Subsidy – (Urban/Rural /General Category/
Special Category)].
 General Information and Location : To be Furnished in the Blank Space.

[Name of the Unit/Firm, Address of the Proposed Project Location, Size of the Space Available and
Occupancy under Ownership/Lease Agreement].
 Promoter’s Background : To be Furnished in the Blank Space.

[Name of the Promoter, Age, Communication Address, Educational Qualification, Work Experience and
Special Training Attended, if Any].
This Project Report/ Business Plan covers all the important aspects of the Project containing Highlights of the
Project, Introduction, Market Analysis, Production Aspects, Technical Aspects and Financial Aspects. The
Financial Aspects contains Capital Investment Estimates with detail Project Economics, Computation of Working
Capital Requirement, Estimated Cost of the Project, Proposed Means of Project Financing, Estimated Annual
Sales Turnover, Projected Profitability Statement, Calculation of Interest Amount, Depreciation Schedule, Term
Loan Repayment Schedule, Debt Service Coverage Ratio, Break-Even Analysis, Projected Cash Flow
Statement, Projected Balance Sheet, Internal Rate Return and Pay Back Period. The presentation also
supplements with important facts and useful information (In Annexures) covering the areas namely Statutory
Permits and Business Licenses Required for the Project, Important Steps to Start a MSME Business Unit,
Tips to Identify Suitable Project Location and Smart Tips to Follow in Packaged Drinking Water Business.
Hereby, the Report contains detail requisite information to quickly start with the various time consuming
government formalities connected with planning and commercial operation of the proposed business project.
Following are some of the indicative areas where the Ready Reports may be utilised as a Project Document;
Term Loan/Cash Credit NOC from Local Body

Industrial Estate/Commercial Space NOC from Fire Service
Pollution Control Board Trade License
Water and Power Connection GST Registration
Safety and Health MSME Udyam Registration
Labour Welfare Clearances Foreign Trade License
Employee PF and Insurance Clearance for Location
BIS License/ Factory License Land Conversion
FSSAI License/Drugs and Cosmetics Pre-Construction Permission
License
Quality Certification Post-Construction Clearances
This would help in identifying in advance the infrastructure/resources required for the Project and approach the
concerned government agencies accordingly. Hence, it becomes a complete document for further action towards
realising the dream of becoming an entrepreneur.

Inmoisture-Project-Report Draft V0.1

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Inmoisture-Project-Report Draft V0.1

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PACKAGED DRINKING WATER

[BOTTLED WATER & SODA]

PROJECT REPORT/BUSINESS PLAN

LIST OF ANNEXURES Page

ANNEXURE-I STATUTORY PERMITS AND BUSINESS LICENSES 30-31

ANNEXURE-II IMPORTANT STEPS TO START MSME BUSINESS 32-33

ANNEXURE-III TIPS TO IDENTIFY SUITABLE PROJECT LOCATION 34-34

ANNEXURE-IV SMART TIPS TO FOLLOW IN PACKAGED DRINKING 35-36

HIGHLIGHTS OF THE PROJECT

Sl. Particulars Description

2. Civil Works & Buildings Rs. 89,00,000.00

3. Plant & Machinery (Indigenous) Rs. 110,00,000.00

4. Fixed Assets Rs. 5,00,000.00

5. Pre-operative Expenses Rs. 7,71,675.00

6. Contingency & Escalation @ 5% of Rs. 10,20,000.00

Total Capital Expenditure Rs. 2,21,91,675.00

1. GENERAL INFORMATION AND LOCATION :

Name of the Unit/

Size of the Space

4. THE PROJECT PROPOSAL :

The proposed project is that of setting up of Packaged Drinking Water Plant

5. PROSPECT FOR INVESTMENT:

6. POTENTIAL TARGET CUSTOMERS/MARKET :

7. MARKET ENTRY AND MARKETING STRATEGY :

7.1. Market Entry : Due to growing population, a business dealing with

7.2. Distribution : The effectiveness of distribution coverage and practice

7.3. Marketing Strategy : In any business, a solid marketing strategy is

 In addition to selling through retail channels, efforts would be made to

8. CRITICAL SUCCESS FACTORS:

 Procuring high quality raw-material and securing its regular supply in

 Technical know-how and experience of the entrepreneur in the field is

 The entrepreneur should be aware of the supply and demand conditions of

 Properly trained manpower should be engaged.

 Knowledge about local environmental regulations and compliance

 Efficient recovery of wastes and their utilization may improve operational

 Never compromise with the quality of the Products. Ensure quality

 Need extensive marketing, distribution and effective sales management

The Promoter is technically well-informed to undertake the proposed venture and

9. PROCESS DETAILS AND TECHNICAL ASPECT :

9.1. PROCESS DETAILS OF PACKAGED DRINKING WATER: Raw water to

PROCESS FLOWCHART: The process flowchart that describes the business is

9.2. PROCESS DETAILS OF SODA WATER : Commercial soda water in

9.3. PACKAGING : Drinking water would be packed in PET bottles of

9.4. AUTOMATION : The following automation can be provided in the plant,

9.5. QUALITY SPECIFICATIONS: Drinking water must conform to the guidelines

The Bureau of Indian Standards (BIS) has formulated following specifications

IS: 13428-1992 : Chemical & Physical requirements

RAW WATER ANALYSIS:

The system is designed on the following water

10. INSTALLED AND OPERATIONAL CAPACITY :

Outlet Water- 3,600 Liters Per Hour.

PERCENTAGE OF PRODUCT SEGMENT:

11. RAW MATERIALS AND CONSUMABLES :

11.1. The raw materials required are as follows;

12. POWER AND UTILITY :

13. TENTATIVE IMPLEMENTATION SCHEDULE:

ACTIVITIES TIME PERIOD

Civil Work/Arrangement of Finance

No. (In Months) Month Month Month Month Month Month

14. BASIS & PRESUMPTIONS:

14.3. Premises is assumed to be owned or occupied on lease hold basis.

14.9. Insurance charges have been considered Lump Sum.

14.12. Non-refundable deposits, Fees for Preparation of Detailed Project Report,