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

â
Raw Water Storage
â
Raw Water Lifting Pump
â
Sand Filter
â
Activated Carbon Filter
â
Base Exchange Softener
â
Ultraviolet Disinfection
â
Micro Filteration System
â
High Pressure Pump System
â
Desalting
â
Mixing
â
Storage of Treated Water
â
Polishing Filteration
â
UV Disinfection System

â
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 : 45 lakh litre/annum (15,000 L/day)
Installed capacity : 20,000 L/day
Optimum capacity utilization : 70%
Working days : 300/annum (3 shifts)
Manpower : 18
Utilities
Motive Power : 40 kW
Water : 25 kL/day

9.0 FINANCIAL ASPECTS

9.1 Fixed Capital
9.1.1 Land & Building Amount (Rs. lakh)
Land 2000 sq.m. : 1.50
Built up Area 700 sq. m. : 24.50
———
Total cost of Land and Building : 26.00

9.1.2 Machinery and Equipment

Description Amount (Rs. lakh)
UF based purification system (Sand filter, : 28.00
chlorination unit, UF membranes,
sterlisation unit, SS silverisation unit, skid,
electronic doser, ozone generator, water
collection tanks, Quality control laboratory,
deep borewell, deliveray van
Erection and electrification @ 10% : 2.80
of machinery cost

Office furniture & fixtures : 1.20

———-
Total 32.00

9.1.3 Pre-operative Expenses

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 Consultancy fee, project report, deposits with : 3.00
electricity department etc.

9.1.4 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 Amount

Per month (Rs.lakh)
Factory Manager 1 6,000 0.72
Production Manager/Chemist 1 5,000 0.60
Supervisory staff 6 4,000 2.88
Office Assistant 2 3,500 0.84
Skilled workers 4 2,500 1.20
Unskilled workers 5 2,000 1.20
7.44
Perquisites @ 10% 0.76
—— ——
Total : 18 8.20

9.2.2 Raw Material including packaging materials

Particulars Qty.(MT) Rate Amount (Rs.lakh)

• Pet bottles including 45 lakh 3.60 each 162.00
caps, labels, 1L size
• Chemicals -LS- -LS- 006.00
• Corrugated boxes 1,88,000 Rs. 20/24 037.60
bottles

Total: ------ ------- 205.60

9.2.3 Utilities Amount (Rs. lakh)

Power 180,000 kW 4.92
Water 25 kL/day 0.28
————
Total: 5.20

9.2.4 Other Contingent Expenses Amount (Rs. lakh)

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 Repairs and maintenance@10% 3.20
Consumables & spares 1.20
Transport & Travel 0.40
Publicity 0.05
Postage & stationery 0.08
Telephone 0.13
Insurance 0.44
————
Total: 5.50

9.2.5 Total Recurring Expenditure Amount (Rs. lakh)

(9.2.1+9.2.2+9.2.3+9.2.4) 224.50

9.3 Working Capital

Recurring Expenditure for 3 months 56.13

9.4 Total Capital Investment Amount (Rs. lakh)

Fixed capital (Refer 9.1.4) 61.00
Working capital (Refer 9.3) 56.13
————
Total: 117.13

10.0 FINANCIAL ANALYSIS

10.1 Cost of Production (per annum) Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5) 224.50
Depreciation on building @5% 1.23
Depreciation on machinery @10% 3.08
Depreciation on furniture @20% 0.19
Interest on Capital Investment @12% 14.00
————
Total: 243.00

10.2 Sale Proceeds / Annual turnover

Item Qty. Rate Amount
(MT) per bottle (Rs. lakh)

Sale of packaged drinking 45 lakh 6.00 270.00

Water in PET bottles cap. 1L,
packed in cartons of 24 bottles
each ————
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 4.50
Interest 14.00
40% of salary, wages, utility, contingency 7.56
Insurance 0.44
————
Total: 26.50

10.7 Break even Point

= Annual Fixed Cost X 100
Annual Fixed Cost + Profit

= 26.50 X 100
26.50 +27

= 49.5%

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11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Sonalifabs Rital Agencies

71, Biren Roy Road (West) 55 III Main Road, Gandhi Nagar,
Kolkata – 700 061 Chennai – 600 020

Enviro Tech Utility, Ion Exchange India Ltd.

32A, Main Patel Nagar Road, Ticcon House
Opposite Wings Show Room Dr. E.Houses Road,
West Patel Nagar Mahalaxmi,
New Delhi – 110 008 Mumbai – 400 011

Watrion Water and Filter Engg. Pvt. Ltd. Alpha Engineering

1, Harsivan Apartment, Ground Floor 158, Pocket E-20, Sector-II
(Behind Canara Bank) Rohini, Delhi – 110 085
West J.P.Road, Andheri (West)
P.B.No. 7372
Mumbai – 400 059

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