Pure water production business is very lucrative that is what you often hear, I’m not disputing that but do you know that many are also failing in this business. The next building to where we are residing is a pure water factory that has folded. It was still operation 3 months before we moved in to the area. When I asked my neighbour why, he said the owner was owing his staffs’ salaries which resulted in series of crisis before the place was finally locked up. There are many challenges in pure water business but they are also surmountable. In this post you will get all the nitty gritty that will make you succeed as a pure water manufacturer.
List of what to expect in this post
- Pure water business in Nigeria
- Profits in the business
- Problems facing pure water production
- Prices of machines
- NAFDAC requirement
- Pure water factory layout.
- The type of nylon to use and price
PURE WATER PRODUCTION BUSINESS IN NIGERIA
The demand for pure water keeps increasing everyday because it is something an average Nigerian can afford, a sachet goes for #10. It is a very stressful business and capital intensive as such if you are not careful it will pack up. You have to carry out studies, strategies and do a pure water business plan before you jump into it.
You can cut the nylon for packing the satchet water yourself or buy the machine and emply someone to be cutting them for you instead of buying cut ones. In other to minimize cost and maximize profits.
Don’t run everything by yourself, get the services of an installer because 50% of your success lies on it. But you have to engage your installer because some of them will instal and connect all the instruments without showing you how to run them. They leave it for you to figure out how to use them.
Please ask them questions as much as you can especially the do’s and don’ts. Others will tell you to install more than the needed machines. So look for an installer with integrity, I mean to say hire the best installer.
REQUIREMENTS FOR PURE WATER PRODUCTION BUSINESS
- ACQUIRE LAND
- DIG BOREHOLE .
- PURCHASE MACHINES
- NAFDAC REGISTRATION
- BUSINESS NAME
- WORKERS
- BUILDING
BUSINESS NAME REGISTRATION
This is very important because you need it for NAFDAC and trademark registration. Chose a name that is unique, memorable and easy to pronounce. With #30,000 you can get a business name for your pure water production business. The nylon materials you will use must be Printed with logo and the product name.
PURE WATER FACTORY LAYOUT
The site or factory should not be located close to refuse dump, latrine or pit toilet, fuel depot etc. Half plot of land is enough for establishing a standard pure water factory. Build a five room bungalow, the rooms should include; production room. Finished product store. Material store room. Cloak room. Office.
The first thing to do before starting the business is to first dig a borehole in the factory premises then carry out water analysis. This is very important because it will guide you on the cost and equipment to buy. But let your installer inspect the land to see if it is suitable for pure water business. He will give you the building plan and where you should dig the borehole. The borehole should be 50 feet away from septic tank.
MACHINES NEEDED FOR PURE WATER AND THEIR PRICES
- Automated Sealing machine the one that can seal up to 35 sachet a minute, #600,000.
- Borehole #250,000.
- Overhead tanks/reservoir for water supply #50,00 each
- Distiller.
- 2-3 pairs of industrial filters,
- UV air steriliser.
- Ozoniser.
- 3-4 Micro filter and their cartridges.
- Boiling machine.
- 25KV generator #400,00.
- Truck for distribution #2,000,000 tokubo buy diesel type.
- 2 Tricycle #700,000.
Instead of two trucks or van buy tricycle to service those in interior areas and to penetrate places without good roads. Tricycle will access remote areas and supply pure water and this will invariably increase sales. It will save #300,000 for every one ton of pure water sold.
This is because it can save #60,000 per 200Kg of pure water sold. Operating cost matters a lot in pure water production business. . And tricycle is good in saving running cost because it has efficiency in fuel consumption.
Tricycle can do turn over about 5 times and can accommodate 70 bags at a time. It uses between 8-10 litres while a car will use 30 litres.
MATERIALS NEEDED
Cellophane half a ton is about #700,000. While the price of pure water nylon is about #1100-#1300!per Kg depending on the quality of the nylon and the company. For cylinder printing, the least of materials to print is half a ton but with rubber printing less than have a ton can be printed for you.
Another way to increase profit is in the type of micron hdpe you use. The best micron to buy is 36 micron it is not every company that has the machine that can produce them in uniform and not all operators can also set your machine to produce sachet with it, so be careful. 1Kg of 36 micron will give between 30-32 sachets which is 30000-32000 against 20000-22000.
Note
Don’t buy reverse osmosis or ozonator machines except there is need for them. You will need them if your water source is ironically contaminated but it is very rare. Also if the water is hard or has a high level of salinity you will need the reverse osmosis and it is the costliest of all the equipment mentioned.
Disclaimer: the prices of pure water machine is not fix and can change at anytime depending on the manufacturers. The prices mentioned in this post are based on the time of research.
HOW TO PAY STAFF IN PURE WATER BUSINESS
- Manager. #30,000
- Operator (2). #25,000 each
- Packers (2)). #10,000 each
- Drivers for truck and tricycle #20,000
- Motor boy. #10,000
- Total. #170,000
Salary plus incentives is the best remuneration to go for. For every one bag of pure water sold attracts #10. At least they should be able to sale 500 bags a day. So 500 multiply by 25 working days will be #12,500. When you have worked with your staff for a while you should be able to build some level of trust to allow them buy fuel by themselves. Otherwise buy fuel by yourself and distribute to the vehicles when needed.
A packer can pack between 100-400 bags and a driver should be able to sell between 100-600 bags depending on how experienced the person is.
HOW PROFITABLE IS PURE WATER BUSINESS IN NIGERIA
It is highly profitable but the profitability depends on how well you are able to cut down on the running cost. For instance if you are producing 26-28 per kilo then you are producing at a loss. Let’s break the cost down in other to find out how profitable pure water production business is.
- Nylon. #1.4M
- Fuel. #174,000 for vehicles and factory
- Labour. #170,000
- Miscellaneous. #150,000 running cost for 6 months
- Total. #1,894,000
Vehicle consumes about 960 litres multiply by #145=#139,200 4 litres will produce 500 bags. And 30,000 bags can be produced in a month. So 240 litres multiply by #145 will be #34,800
Total=#174,000
Vehicle consumes four times that of factory consumption of fuel.
SALES
You should be able to sell 1200 bags a day. Multiply by 25 working days, you will have sold bags of water worth #3,000,000 because a bag goes for #100 each.
Cost of production minus sales will be
3,000,000-1,894,000=1,106,000 profit.
1,106,000 x12 (one year)=#13,272,000. This means you can recover your capital within a year.
NAFDAC REQUIREMENT FOR PURE WATER PRODUCTION/TRADEMARK
- Your installer will take care of NAFDAC registration. This he will do by going to their office and inform them about your readiness to open a pure water factory. NAFDAC will in turn give him some documents which comprises of all the requirements, forms and instructions for the registration.
- Also you will be required to pay a pre-inspection fee in their company account that will be given to you. It will be required of you to take the payment draft to their office for a receipt. They will then book a date with you for the pre-inspection. If their car is available, they will come with it but were otherwise you will have to take care of their mobility.
- NAFDAC registration fee is about #30,000 but are sometimes periodically reviewed meaning you may have to pay a little more. Trademark can be processed in Cooperate Affairs Commission (CAC).
- Someone may ask, can I open another pure water site with the same NAFDAC registration? The answer is no, because NAFDAC will still conduct pre-inspection in short you have to go through the whole process of registration. Also you have to analyse your pure water from the source. After production it can then be approved. But for trademark you will not need to worry.
- Contrary to popular believe that NAFDAC approval is tasking and takes a long while, as such many entrepreneurs shy away from pure water production business. NAFDAC approval takes between 3-4 months all things being equal while trademark takes between 3-4 weeks.
HYGIENE
Keep your environment clean that is why you should employ at least one cleaner to assume that responsibility. Wash your tank every month, there are people who specialises on that you can engage their services.
CHALLENGES FACING WATER INDUSTRY
- Not being able to sale your pure water fast. Remember it has an expiring date once it gets closer to the time people will not want to purchase such pure water. Also if it stays too long before disposing them it will change taste and at one point may begin to draw. So plan your marketing strategy well so you can be able to sell fast.
- High increase in production rate. Prices of materials like nylon may increase at any time also fuel or diesel and yet the price of pure water remains #10 for a satchet and #100 for a bag. This will affect the cost of production and will eat into the profit.
- Vehicle maintenance. If you observe very well you will noticed that most vehicles used for pure water distribution are rickety. This is because of the stress and over use they undergo. Everyday you keep on loading pure water in the same vehicle and water can be as heavy as books. You have to as a matter of importance maintain constant vehicle maintenance and also have a good mechanic to be doing the vehicle servicing for you regularly. Buy European diesel truck and not Japanese brand.
- Not paying your staff their incentives as at when due. This is a very big issue that needs to be addressed right from the beginning. Because you need staffs’ that are dedicated to duty therefore you have to treat them well. So that they can work better for you, if the stop production for one day it will take you days to recover from the effect.
- Power. Because you need light for the pure water production it will be wise to use a KVA generator that won’t give you headache. And you have to service it regularly too. Buy China generator example Sifang engine with 10Kw coil.
HOW MUCH IS NEEDED FOR PURE WATER BUSINESS?
It depends on how you want to start, assuming you have all the fixed capital in place example land, building, vehicles, machines etc. Then #3,000,000 can start the pure water production.
For bottle water business you need more than that amount.
MARKETING
As a new company in pure water business, it is very important to study the market before you start distribution.. Reduction of #1 can give you an edge over big and long standing water companies. Supply to shops or customers very early in the money before other companies start waking up. Where we were staying in Akwa Ibom there is a water company that supplies pure water as early as 5a.m sometimes before that time. By the time owners of the shop resumes for the day, they already have pure water to sell to customers.
Your ability to penetrate the market will determine how successful you will be in the business. Never shy away from approaching the market.
Do you need pure water business plan, WhatsApp: 08055196689 for current detailed plan at a reduced price.
CONCLUSION
It is a good business idea to invest in as an entrepreneur. You can rent a place for your pour water production business. Also you can start with one automated machine, it can produce 500-700 bags within 4-5 hours. If the water in your area has salinity instead of spending much money go and rent a place that is free of such.
Don’t ever assume you cannot fail in this business for your mind water is a free gift of nature so…
Out of 4,000 registering every year more than half of the same pure water companies also close down within a year, so be guided.
Contact us on 08035965405 for your pure water business plan.Â
If pure water production business was useful to you, Please follow us on Facebook and Twitter Use the comment box for your questions and get a prompt response and don’t forget to subscribe to our newsletter below, just enter your name and email address. Lastly, if you enjoyed this post, why not share with it your friends by making use of the share buttons below the newsletter form! In case you want us to write on any other topic, please let us know in the comments section or contact us. We appreciate your support Thank you
I really appreciate the guild line, pls, I will like you to guild me on something. Thank you.
Okay @Esuike
Wow thanks so much this is an eye opener
We are india based suppliers for machinery for (a) pure water related project, starting from water treatment plant, to pure water POUCH making FFS machinery. We also supply (b)packing bag making monolayer extruders as well as (c) pure water film making project machinery (d) machinery for carry bags/shopping bags/Loop handle bags/supermarket Bag-on-roll machines etc.
We are also suppliers for project machinery for production of PVC pipes, telecom HDPE duct pipes used in plumbing and contructions and irrigation etc. Please contact us at Plastmach.global at Gmail dot com or what’s app at my india phone number +9 1 9 7 2 6 2 7 1 4 9 5 . Manoj Prakash / Plastmach Global
Thank you, this is very incisive. i wish to ask if you know how one can get an installer, particularly around the FCT, Abuja area.
Hello@Andrew but not for lockdown I would have find out for you. Just go to any pure water factory closer to you and ask any of those workers they may have useful informations.
@Eno thanks for this post.
Thank you so much for this write up. I wish to join this business in the nearest future
Thanks for this eye opener, I will like to have a detailed plan on pure water nylon printing. That’s actually my are of interest.
Thanks
@Okpara chat me up on 08035965405
Am in the process of setting up one. I will reach put to u soon. Thanks for ur input.
Am in the process of setting up one. I will reach put to u soon. Thanks for ur input.
Madam eno, your post is an eye opener, it insightful and aspiring, i am into printing and also wish to venture into Pure Water Nylon printing, i will be indeed glad if more insight tips could be given to me…. Thanks for being a Light in dark shadows
my watsap business line +2348061602142
I have learned a lot from the post,Thank you so much.
Good evening Eno, thanks for your insightful analysis i am intrested in setting up a pure water factory and will like to seek more clarity on this issue basing on your experience, please how can i reach out to you.
Thanks for the write up most especially the idea of getting tricycle alongside the truck for distribution purpose. I’ve clicked into that bcs l’m about to set up a factory hopefully if the bid for the loan comes through. Yes, you gave an idea to rent a place if the original place is having sanility. Thank you.
There is an issue yet to address, the determining cost for sale of a bag of pure water. How can one know the company cost before knowing how to sell it and even reduce #1 to attract customers ?
Most factory owners always says that 25 bags is what they most often get from lkg of printed nylon of 60cl and you said this is at a loss, why ?
I read through and l appreaciate what l read most especially adding tricycle to the truck to distribute and also if the water in the location is sanility, one should not waste resources and move to a rented place, this is a candid advice. Pls, there is a question yet to answer and this is the determinant selling cost of a bag of pure water based on total cost of producing a bag. Or is it regulatory body that determines this?
You also said those that are producing between 26-28 are producing at a loss and reliably, the producers says they produce 25bags per kg. Are they producing at a loss? I wish to go into the business all things been equal.
THANK YOU FOR THE POST, I HAVE LEARNT SOME NEW THINGS. HOWEVER, THE SALES AND HENCE PROFITABILITY DURING DRY SEASON IS HIGHER THAN RAINY SEASON FOR OBVIOUS REASONS. SOME PERSONS HAVE ADVISED THAT IF I DON’T HAVE A PROPERTY OF MY OWN FOR THE FACTORY AND I’M PLANNING TO RENT, THERE IS NO POINT GOING INTO THE BUSINESS BECAUSE IT CAN’T SURVIVE WITH PAYING RENT. WHAT DO YOU THINK?
Starting is very important, you can start saving for your property right away. Sone people leave city center where rent is high to a suburb where rent is low
Thanks. it worth any amount if someone was to pay for it.thanks once again
I will add you up on WhatsApp,for more discussion.
I’m very much interested in starting this business.thanks for the info here.
Madam Eno,
I appreciate your details and would add you up on my WhatsApp for some clarification as I am interested in both sachet and bottled water production.
Thanks and God bless you real good
Educative
What a beautiful piece! It’s really an eye opener. I’ll get back to you soon. Thanks a million.
Dear Eno,. I join others in expressing gratitude for the insights shared. I have a few questions for clarity.
1. A fairly used sealing machine or a new one. Which is a better choice to adopt?
2. What depth of borehole is considered safe from micro-organisms?
3. Do you offer consultancy services in this regard?
Thanks in anticipation of your responses.
Go for the new one please
60-80 cm is safe
yes, we offer consultancy service
you are welcome
I love this piece of yours and it really gave me a good insight about the business. I like the business and I will reach you through any of your social medium when I am ready.
Alright@Obi
I really love all the explanation
I wish to buy an existing Sachet water factory up for sale in Abuja or Lagos.
Do you know of any?
i will look out for one for you. you can contact me on 08155196689
Thanks so much I will like to have your number I have pure water factory am even planning to put it on rent
08155196689, 2 MONTHS AGO SOMEONE WAS SEARCHING FOR ANYBODY THAT WANTS TO SELL OFF
Want to set up a pure water factory in port Harcourt
Okay that’s nice
Economics said “all things been equal” Eno, it is my passion to be a producer of goods and services.
Now I have fixed assets like already erected 6 bedroom bungalow. Already sank a borehole 250 feet More than NAFDAC required deep. The premises is tightly fenced. I have secured one Motorbike tricycle.
Eno please do you with N4m that I can start with just one automatic filling and sealing sachet water machine.
Your honest advice is highly appreciated.
yes please, that amount is enough to start. go ahead no procrastination
thanks
I’ll like to chat with you. I have some questions to ask please
GO AHEAD PLEASE
Thanks Eno for this invaluable post.
I ‘m already in the process of setting up a factory in Ogun State and will appreciate your further input and professional advice.
All equipment are readily available.
woah! so good to know, you can always chat me up
This is so insightful.
Will need more guidance.
Thank you,
Thanks for your explanation, it really helpful
I hope to get in touch with you on the number you display here.
Thanks once again..
hi Eno,
i see two different contact numbers for you here so far, please which one is your direct line.
please where is your location, how far do you travel for consultation and setup of a new factory
thank you
the numbers are mine
Can you connect me to honest and experienced consultant to plan and set up the pure water factory for me..
Your location?
Good morning,pls like how much will I need to start pure water business in Kwara I have a piece of land already.
Woo nice one, Am about investing in the business I will like you to put me more through
Of all the blogs I came across searching for information on water packaging business, your blog and your information is the most clear, most articulated and most educative of all..
Kudos and thank you for this..
We have finished setting up a bottle / pure water factory here in Anambra.
All machines has been installed.
All relevant licences and certificates acquire.
Vehicles procured..
Intact, we are 97% ready to take of but, we got stuck in recruiting workers.
As new entrant in the field without any knowledge at all, we didn’t know what the salary scale of workers should be or how they are paid..
The other companies we consulted were too economical with informations so I resort to the internet..
Thank God I found you.
This post is just very informative for me and I look forward to having private chats with you..
With this information, I think I now have an idea on the salary and pay schedules for workers, and I’ll now go ahead to start recruiting..
If you can refer me to any experienced machine operator, that’ll be highly welcomed..
He or she will handle the bottling machine, satchet water machine and the pet blowing machine..
Thanks so much once again.
Thanks for the compliment, I am happy you found the post useful. I’m sorry, I don’t have anyone in your location. Approach a staff of any pure water company around you, they are in a better position to connect you with one
Nice one! Thanks
You are welcome @Joel
Thank you so much for this information. Very helpful and enlightening. I want to start this business. Is there an update? Vise a vise the cost of things now. Thank you.