1.
PLANT COST
Whenever you’re taking a Decision to establish a Mineral Water
Plant, obliviously few questions will come to your mind like :
To know the Profit Margin please refer the Chart BelowCost of
Production/ 1 Ltr Bottle
The Table highlights the Cost incurred per 1 ltr bottle.
Kindly Note, that the costs are not exact, also vary from plant to plant, season to
season also. You are suggested to to talk to your Turn-key supplier to get these.
Sr. No.
Description
Cost [Rs.]
1.
Cost of Bottle + Cap
2.90
2.
Shrink Label
0.30
3.
Shrink Cap
0.80
4.
R.O. Water
0.16
5.
Misc Cost
0.10
6.
packing Cost
0.20
7.
Interest on Capital
0.05
8.
Operating Cost
3.79
9.
Selling Cost
5.50
Margin
1.71
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2.
Cost of Production/250 ml Pouch
The Table highlights the Cost incurred per 250 ml Pouch.
Kindly Note , that the costs are not exact, also vary from plant to plant, season to
season also. You are suggested to to talk to your Turn-key supplier to get these.
Sr. No.
Description
Cost [Rs.]
1.
Empty Pouch with Printing
0.14
2.
Water Cost
0.02
3.
Transportation
0.02
4.
Misc Cost
0.03
5.
Interest on Capital
0.03
6.
Operating Cost
0.23
7.
Selling Cost
0.35
Margin
0.12
Cost of Production/20 ltr Jar
The Table highlights the Cost incurred per 20 ltr Jar.
Kindly Note , that the costs are not exact, also vary from plant to plant, season to
season also. You are suggested to to talk to your Turn-key supplier to get these.
Sr. No.
Description
Cost [Rs.]
1.
Cost of Water
0.60
2.
Cost of Maintenance
1.00
3.
Transportation
1.00
4.
Interest on Capital
0.60
5.
Misc. Cost
0.40
6.
Operating Cost
3.60
7.
Selling Cost
20.00
Margin
16.40
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3.
2. How much is the investment?
The investment truly depends upon the type of plant & the Capacity of plant Let
me explain this in details.
• Type of Plant :
Some people may look at a prosperous Jar Market, at the same time some
other may feel that they should go for bottles, jars & Pouches. Some of you may
feel that they will start with just bottle filling. Empty Bottles bought out where as
some will want to have complete bottle making Set as well.
Cost for Major 3 Plant Types
Plant Types
2000 LPH Std Plant
2000 LPH Economy
Plant
Just Jars Plant
If you are starting out new mineral water plant in india , which is called as a
packaged drinking water plant , your further decisions will depend upon what
exactly you wish to start . In fact you have the following plant options :2000 LPH Std Plant
Bottles,Jar, Pouch , with
Bottle, Jar, Pouch ,
Bottle Making Machine
WITHOUT Bottle Making
also.
Description
2000 LPH Economy Plant
Machine
3000 Sft ( 24 Lakhs)
2000 Sft ( 16 Lakhs )
40 Lakhs
26 Lakhs
Building Cost
Cal.@ Rs.800/per Sq ft.
Machinery
1. Water Treatment Plant
2. Bottle Blowing Unit
1. Water Treatment Plant
List of
3. Bottle Filling Machine
2. Bottle Filling Machine 18
Machinery
30 BPM Auto
BPM Semi Auto
4. Pouch Packing Machine 3. Pouch Packing Machine
5. Ink Jet Coder
Just Jars Plant
Just 20 Ltr Jar
Filling Line
2000 Sft ( 16
Lakhs)
20 Lakhs
1. Water Treatment
Plant
2. Jar Rinse-FillCapping
Machine [Auto]
Focused, but not
Notable Points
Most Feasible
Bottle Cost High as No
equipped to handle
Blowing Facility
all types of
demands
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4.
Are you looking out for detailed Machinery Specifications ? We are Offering
them in our Training Course. Just Look at them here :1000,2000 & 5000 LPH Plant Specifications
Water Treatment Plant Specs
Filling Machine
Bottle Blowing Machine
Lab Equipment List as per IS : 14543
& Also other plenty of useful material for your mineral water plant.
So the decision of “ Which type of Plant” Truly depends upon your targeted
Market segments. Once you decide what to have in your product mix, you can
decide
the
machinery
and
other
things.
Read
this
article
http://mineralwaterprojectinformation.org/ to get an idea of how to decide the
plant Capacity.
Now to arrive at the Mineral Water Plant Cost, These are the elements which are
combined each other.
Machinery & Equipment
All machines like Water Treatment, Bottling, Lab equipment etc. will come under this.
Utilities : Water Electricity Air Conditioning, air Compressor etc.
Liaison Expenses : ISI License & other Government License expenditure.
Consultancy Charges : Like ISI Consultancy project funding etc.
Building Cost : Construction, interior cost
3. How much is the ROI (Return on Investment)?
Usually , if the business is run professionally , the invested money will be returned
to the investor by the business in 3.5 years. So you can say that ROI is 30 % per
annum. We have a Sample
FREE Project Report for Download
(http://forms.aweber.com/form/78/2105049878.htm), from where you will get a
projected figure also. Work with this with your CA.
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5.
4. What are the Risk Factors ?
After working closely in this industry, I have observed that the TOP risk factor in
this business is Improfessional Management of the business. I will highlight main
elements in this :-
a. Execution Failure :Such a plant calls for detailed steps to get executed in time, with detailed
clear-cut duties explained. If not, there is a mess of things & plant fails to get
executed in time, in turn you will be left with LOSSES.
b. No Proper Co-ordination :After
you
finalize
the
plant
supplier
http://mineralwaterprojectinformation.org/article/10-point-checklist-to-findthe-right-mineral-water-plant-manufacturers-for-your-mineral-water-project/)
failing to do a proper co-ordination with him is the major reason. Non-appointment
of a Project Guy OR not maintaining schedules will result in delay in execution
c. No Documentation :People go by intuition, without doing proper study on what they have to sell,
what market they have, how are they going about it etc. And they do not keep any
documentation about this. Then misunderstandings, and all……
d. Absence of Parallel execution system :It means , at a time you will need to carry out various cycles, absence of this
will again increase project period.
e. Habit of doing everything on your own :Keep in mind, you are a businessman, and a businessman delegates, does
not do everything. As an entrepreneur, your job is to get people, tools. And giving
the tools to the best people who are going to do that. Watch this interview with
Richard Branson ( http://mineralwaterprojectinformation.org/article/interview-ofrichard-branson/), who owns over 300 companies now.
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6.
5. How to minimize the Risk Factors ?
I know, 100 % risks can’t be avoided, but can be reduced to a great extent, no
doubts. Here is how you can do it :a. Invest in Education :
Just keep eyes around you, there are many people conducting
courses in Packaged Drinking Water Business from time to time.
Keep an eye on that. Even we also do have a Training Course
http://mineralwaterprojectinformation.org/Course/ on
Packaged Drinking Water . The course is fully online, has a
great content. The best part is:- It’s delivered through mail,
so you can learn at your own pace.
b. Do a proper project execution planstep by step. Prepare an excel sheet, note down all duties, steps etc, who to
do what, what date etc. If you do not want to spend time and need readymade
steps for a packaged drinking water plant, we also have an execution plan
software, it is included in the course above mentioned
http://mineralwaterprojectinformation.org/Course/But you can see a video demo
(http://mineralwaterprojectinformation.org/article/video-of-how-to-execute-amineral-water-plant/) of the course over here.
c. Read this article
on what 5 steps you can take to avoid the risks involved in a packaged
drinking water plant.
Conclusion:
It is advisable to properly study the market, then appoint best possible turn key
project consultant.
*****
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