SATCHET/BOTTLED WATER PACKAGING BUSINESS

Without adequate clean water one suffers dehydration and eventual death. Water provides the medium in which all biochemical reactions take place. Water also plays a major role in the “evolution of biological systems”.
Almost 80per cent of all hospitals in Nigeria today lack good portable water. Hence the need to remove the entire undesirable elements and pathogens it may contain through treatment. Pure portable water is very essential for healthy living. It has no substitute.

Considering the increasing need for good quality drinking water packaged under very stringent hygienic condition as well the the costly effect of water borne diseases like craw-craw, worm infections, water blindness, dysentery, diarrhea, typhoid fever, cholera to mention but few, it becomes paramount to go for clean (pure) water packaging business to deliver Nigerians this high-demand product called Pure Water in local parlance.

From the above, investment into innovative purification and packaging of colorless, odorless and tasteless, drinking water seems a very lucrative business. Already there is rampant and most popular way of packaging water in cellophane sachets usually called "pure water” and sold for N5.00. Though this aspect of packaging water is simpler, cheaper and enhances easy entry and exit, higher turnover because of the cheapness of the products, it has been observed that this has been abused by a lot of people. A more organized means of production of pure water has been found to be gradually taking over: sachet” type of packaging.

Apart from the fact that there is an existing markets for the bottled water, a well purified and packaged, water are exportable to Europe Far-East some African countries and America. Details of the companies, countries, prices and standard required will be given to prospective investors on request.
Presently a plastic bottling can for pure water production is taking over.

This is found to be more lucrative too. This is because not every type of investors can invest on it like ordinary nylon/cellophane packaging of water. All attention is shifting to the plastic bottled water.
The plant can be set up at any part of the country. The plant consists of water treatment plant made up of seal sedimentation, tank, filters, suction pump, alpha chambers, pressure gauge and stainless tank and tama flow 700 and industrial purification system. This machine incorporates from consecutive operations-pre-filters, activated carbon, polisher and ultra violet sterilizer. It also has v/v designed for 30-3 L/min maximum flow rate, 60 PSIG Max pressure, 220 V/50 Hz voltage, 254-barometer wavelength lamp and 99per cent bacteria elimination rate.

The plant can produce 30 liters of well-purified water per minute. This implies that it can purify about 14,400 liters of water per shift of 8 hours.

The writer will educate prospective investors more on contacting him for procurement and installation. There must be water purity testing machine to make sure that the water is germ free.
Finally corking machine is needed.
The raw materials for this project are water, plastic cans and water treatment chemicals such as Ozone, etc. All these are locally available in Nigeria plastic making companies. The chemicals are all available in Nigeria. The water could be obtained regularly either from borehole or natural spring water.
Production techniques are very easy. It involves rust removal, filtration to produce clear, colorless, tasteless drinking water. The chemicals are added to clear any bacteria and germ free from the water. The water is then filled in the bottle, corked and ready for sale.

Study carried out indicated that prospective investor must have a decent building walled and painted with very clean environment, if he must obtain the NAFDAC approval to be business.
From study also carried out the project can be started with the sum of 3.6 million (the cost breakdown is shown below) is required to set up sachet water producing and N9.6 million for automated bottling/sacheting plant.

The project gross profit margin for the project is worked out as N9.7 million in the first year and N14.27 million in the fifth year. Projected operating costs for the first year is N1.140 million and N1.519 million in the 5th year.
When the operating costs are deducted the investor would be recording N6.096 million in the first year and N9.030 million in the fifth year.
It is very lucrative business. The writer can assist prospective investors to conduct comprehensive and bankable feasibility studies, assist in sourcing the required funds and procurement and installation of a well tested, NAFDAC approval plants and machinery.
Financial projection
Preliminary Expenses 100 100
Plant & Machinery 1,300 5,000
Accommodation 550 550
Motor Vehicle 500 1,500
Operational Expenses 600 2,000
Contingencies 270 500
Total 3,600 N9,650
The new dimension of water bottling, with 20-liter dispenser and bottle racks is also very lucrative and can be incorporated into this project plan.


BOTTLED WATER PACKAGING
The following is a bottled water service delivery business guide to help new entrepreneurs establish their own business.

Water packaging business provides packaged water products to quench the daily thirst of people. This business is an evergreen type because it will continue to be relevant as long as there is human civilisation. Even as you read this piece, you might be sipping a packaged water product.

• Start-up cost as low as N10 million or more depending on the size of investment

• Potential first year earnings: N30 million

• Breakeven time from initial investment: very rapid (can be between 1 to 2 years)

• Future growth potential: very high

• Dynamic, fast-growing industry

• Possible for small business or cooperative-based organisations

• Not much staffing required especially at the beginning

I met a charming lady some years back who confided in me that she wanted to start a business after having been involved in contract jobs for quite a while. She had read an article I wrote for a women magazine that period and was fired up to do something with her life, beyond seeking and getting contracts. She had some money with her and needed just some form of moral and professional support to start. In my first discussions with her, after she had narrated her desire to me, I remembered telling her that business is not normally imposed. If it has ever happened that way, it would be an exception and not the rule. Whatever business you intend starting must come from within you. It must stir you up from the inside. However, you can also get some insight into what kind of business to go into by reading up on sample businesses like the series we are running now. In fact, as one professional put it, “Many individuals are not really sure of what business to start – but they know they’re in love with the concept of entrepreneurship. If you aren’t positive which business to start, don’t apologise: As long as you pour the same enthusiasm into a venture once you pick your star, you can be as successful as the individual who always knew which field to enter.”
The demand for clean water has been increasing steadily for the last couple of decades. This is due to the rising concern for chemicals and other impurities that may be present in tap water. With many people becoming more and more health-conscious, the bottled water industry became one of the most profitable businesses today.
Accordingly, the following are some helpful tips on how to establish a bottled water delivery service biz.
Create a Bottled Water Delivery Service Business Plan
Planning is the first and foremost thing every entrepreneur should do. This is to have a proper assessment of the market, including the startup cost for a bottled water delivery service biz, competitors, consumers and other incidents of the business.
Decide What Type of Bottled Water Delivery Service Biz to Establish
There are different types of water bottled and sold to consumers. These are the spring water, purified water and distilled water. Pure spring water
is collected from springs and wells and bottled at source. Purified drinking water on the other hand, comes from a process called reverse osmosis to remove dissolved minerals. Lastly, distilled water also removes dissolved minerals through vaporization and condensation of water.
Next is to decide what type of water bottle to sell. There is the individual bottled water and the large bottled water, usually containing 5 gallons. The large bottles are usually preferred in households and offices because it is cheaper. With this type of service, it is necessary to invest in water cooling units, which can be rented along with the bottled water sold.
Study the Market of Bottled Water Delivery Service Business
The next thing to do is to asses the market. Decide first where to start a bottled water delivery service biz. Take into consideration the target consumers and the prevailing bottled water delivery service biz competitors to know the profitability of the business.
It is important to select an area to startup a bottled water delivery service biz where there are few competitors and many possible clients. The usual bottled water delivery service biz clients are households and offices. These consumers prefer bottled water delivery service that is closest to them, which is more convenient and most of the time, provides better and prompt service.
Bottled Water Delivery Service Business License
Last but not the least is to secure a license from the proper authorities. Compliance with the law is essential in any business establishment. This is to maximize the benefits of the bottled water delivery service business.Visit the NAFDAC office in your State to find out more.


Background to water packaging business

The Earth has 1,386,000,000 km3 of water total but only 2.5 percent of that is fresh water (i.e. 35,029,000 km3 or 9,254,661,800 gallons of fresh water).

Why is fluid important?

Water is essential for the growth and maintenance of our bodies and is an important component in the diet. The British Dietetic Association guidelines state that an average adult should consume 2.5 litres of water of which 1.8 litres (or 5 x 330 ml cans; 7 x 250 ml glasses) must be in fluid form, the remainder being obtained from foods. For children to maintain their correct water level of 60-70% body weight, they need to consume up to 2 litres of fluid every day. This intake needs to be increased during periods of hot weather or during and after periods of physical activity in order to avoid dehydration.

What are the effects of dehydration?

Dehydration is caused by consuming too little fluid and can cause symptoms such as headaches, tiredness and loss of concentration. Adults eliminate around 2.5 litres of water per day, through urine, perspiration and respiration. In children, this varies greatly according to the outside temperature, age and activity level of the child, as well as other factors. Children do not instinctively drink enough to replenish the fluids lost during prolonged activity or play periods and evidence has shown that they consequently become dehydrated. Research has shown that children are more likely to drink sufficient liquid to replace lost fluids and maintain hydration during activity when presented with flavoured beverages.

Packaged water products

Water is classified as bottled water or sachet water (pure water) if it meets all applicable standards, is sealed in a sanitary container/package and is sold for human consumption. Bottled/sachet water cannot contain sweeteners or chemical additives (other than flavours, extracts or essences) and must be calorie-free and sugar-free. Flavours, extracts and essences, derived from spice or fruit, can be added to bottled water, but these additions must comprise less than one percent by weight of the final product. Beverages containing more than the one-percent-by-weight flavour limit are classified as soft drinks, not packaged water. In addition, packaged water may be sodium-free or contain “very low” amounts of sodium. Some packaged waters contain natural or added carbonation.

Water Purification Technology

The packaged water business requires a high level of water purification so consumers’ health wouldn’t be compromised for monetary considerations. I’ll advise those already in this business and those venturing into it to utilise the latest water purification system called Reverse Osmosis Purification System. This system removes all contaminants, odour, harmful chemicals, volatile organic compounds, and totally dissolves solids and pathogens. It is found out now that chlorinated water is carcinogenic. The US Council of Environmental Quality says that the risk of having cancer is 93% high among people who drink water treated with chlorine. Gradually, concerns are being raised as to the hazards created by chlorine-treated water as research now shows that not only does chlorinated water cause cancer, it also leads to immune system impairment, diabetes, neurotoxicity, birth defects, decreased fertility, hormonal imbalances and reproductive dysfunction in men and women. It is therefore of utmost importance that those going into or already in the packaged water business should mind the health of our people and upgrade their technology, totally eliminating the use of chlorine as is now done by the Coca-Cola company in Europe, Namibia and the US and some other parts of the world.

Target Market for Packaged Water Products

The target market for packaged water products includes everyone, from the young to the old. It covers:

• School children

• Workers

• Schools

• Business places

• Worship centres

• Marketplaces

• Eateries, posh and local restaurants

• Formal Gatherings and events

• Parties and celebrations

Technical and Other Requirements

Organisations that are into packaged water are to seek registration with The National Agency for Food and Drug Administration and Control (NAFDAC), which is the regulatory agency in the country that monitors and controls the food and drugs sector. NAFDAC insists that water and water base industries must not be close to a cemetery, abattoir, petrol station, refuse dump, sewage system, saw mill, etc. Owners of this business need to get clearance from NAFDAC before commencing production. The technical and business architecture of the business will determine the overall success of the business. For instance, in this business, the owner needs bottling/sacheting water machines, a factory environment for production, cloak room, packaging material room, finished product room, a water treatment plant (using preferably Reverse Osmosis Purification System), borehole or a water source, and so on.

Income Potentials

Let’s take for instance Lagos state with an unofficial population of about 18 million people (from the Lagos state website). If 85% of this number patronise packaged water products, what we have will be 15.5 million potential customers. If 75% of this market take sachet water, then the number comes to approximately 12 million, while 3.5 million represent those who take bottled water. If your business captures 1% of the sachet water market, you will be serving 120,000 customers. If every day, each one takes 3 sachets of water on the average, we are talking about 360,000 sachets. Since a bag of sachet water contains 20, this means you’ll be selling 18,000 sachet water bags daily. If the cost of producing a bag is N40 and you’re giving it out at N55, you’ll be making N15 per bag as profit and N270,000 daily. For a 24-working day period in a month, you will be talking about N6.48million as profit monthly and N58.32 million for a 9-month business year (factoring in the rainy season). If you achieve 50% of your income potential in the first year, you’ll be talking about N29 million profit. I have not worked out the income and returns on bottled water.

You however need a good and comprehensive business plan to show you how to effectively market and promote your packaged water products, build a strong and effective business and technical architecture and evolve a workable corporate strategy for overall business success, competitive advantage and customer growth.