Complete Guide To How To Start Mineral Water Business – Investment, Profit.

Hello curious businessman, I know you eagerly want to know about how to start mineral water business. But before we go deep down into this let’s understand some brief points about the 20L jar mineral water plant industry. Also here is the table of contents available, by which you can directly go to the part you want to know about.

  • Our body has 70% of water and 71% of the earth’s surface has water on it. And fresh water makes up under 3% of all water on earth, out of which 2% is frozen in the form of ice caps and glaciers. We can only use the rest 1% of the water for our daily needs.
  • As the people of India are becoming more health conscious. So instead of regular tap water, people are moving towards mineral and packaged drinking water for the safety of their health.
  • Not only this but the increase in disposable income of the common middle-class families, because of the social effect and promotion by the big industry players, the demand for mineral water has reached an exponential level today.
  • According to BlueWeave Consulting, the India wastewater treatment plants market stood at USD 2.6 billion in 2020 and is further projected to reach USD 5.3 billion by the year 2027, growing at a CAGR of 10.8% in the forecast period. So, now you know the potential to start mineral water plant business plan in India.

So if you are thinking of mineral water plant business ideas and want to make your own mineral water brand then lets us know how to start mineral water plant business in this article of Bazaar Neeti. Let’s Go!

How To Start Mineral Water BusinessMineral Water vs Packaged Drinking Water:-

Before we go through the process to start mineral water business, you must first have to understand the difference between mineral water and packaged drinking water. Well, here you can learn about how to start packaged mineral water bottle business.

  • Mineral Water: Natural mineral water is water from underground sources. It is the water that contains minerals. The minerals can be added artificially or can naturally in the water. It runs through a natural process of filtration and coagulation that contains numerous minerals like potassium, calcium, sodium, magnesium, etc. Aluminium sulphate or other sulphate minerals are used to treat it. Natural mineral water is fit for human consumption because of its rich minerals without giving off any problems.
  • Packaged Drinking Water: On the other hand, packaged drinking water is water derived from any source of drinking water and has to be treated under different stages of the filtration process, including cartridge filter, activated carbon filtration, or any other method with the aid of reverse osmosis and packages it into bottles to fulfil the underlying norms and packed. You must have to know that this kind of water is devoid of minerals and because of the disinfecting process it is chemically filtered and treated, most commonly through chlorination.

Initial Guide to How to Mineral Water Business:-

Location-

  • Since water is a basic need for every living being and is available everywhere around us. But from a business perspective, you must have to find a place where good quality and a good amount of water can be used for further filtration.
  • The minimum area needed for the mineral water plant is around 1000 sq ft. which can be divided for machinery, processing, and storage.
  • You can start it from your home as well, but for this, you assure that you have enough area to set up mineral water plant business.
  • The very important thing that most people in this business forget is you must have to take a small shop in the central marketplace or like a godown so that customers can reach out to you easily.

License Need For Mineral Water Plant Business-

If you are keen to know how to start mineral water business you should focus on some mandatory licenses, that can protect your business in future. Never avoid this. You have to be well-informed about the current regulations of the city you are operating in. And have to follow several rules and regulations laid down by the local authorities. Failure to which can attract penalties and challans. Here are some of them :

  • FSSAI
  • Test reports of raw and processed water
  • Pollution Control Certification from SPCB
  • Pest control certification
  • Trade License
  • Legal Functioning: MSME (Udyam Registration)
  • SSI Registration for government subsidy and other benefits

Mineral Water Plant Machinery-

  1. Plastic Tank (2000 ltr) 3 Layers
  2. 1465 Vessels
  3. 40 NB Multiport Values
  4. Sand Bag
  5. Carbon Bags
  6. Raw Water Pump (1HP)
  7. Dozing Pump
  8. SS Skid (40mm) (SS304)
  9. Flow Meters
  10. Pressure Gauges
  11. Panel Board
  12. Filter Housings (Jumbo-20 inch)
  13. Jumbo Filters
  14. High-Pressure Pump
  15. Membrane Housing 8040
  16. Membrane
  17. SS Tank
  18. Pipe Fittings
  19. UV System (1 meter)
  20. Commercial Floats
  21. Dosing Chemical
  22. TDS Meters
  23. High & Low-Pressure Switch
Mineral Water Business Investment

Purification Process Of Mineral Water-

Mineral drinking water systems use different water treatment processes to provide safe drinking water for the communities. Coagulation, Flocculation, Sedimentation, Filtration, and Disinfection are the series of water treatment steps.

  • Coagulation is the very first step in water treatment, after water accumulation in the storage tank. In the coagulation process, positive charge chemicals are added to the water, which neutralizes the negative charge of dirt and other dissolved particles in the water. Salts, Iron, and Aluminium are some specific types of chemicals used in this process.
  • Flocculation is after the process of coagulation. Flocculation forms heavier and larger particles called flocs by the gentle mixing of the water. Some water treatment plants add additional chemicals to form flocs.
  • Sedimentation is when the flocculated water flows to the next major unit of sedimentation. Its main purpose is to separate out the solid particles that are denser (heavier) than water to reduce the load on filters. This sedimentation process removes almost 90% of the solids in the water. Then the clearer water on the surface is collected in the launder tubes that direct the water to the filter gallery to remove the remaining 10% of solids.
  • Disinfection, Before entering the filtration facility chlorine is added to the water at the pre-chlorination point to begin the disinfection process. The disinfection process is designed to kill or inactivate most microorganisms in water, including essentially all pathogenic organisms whether they are from bacteria, viruses or intestinal parasites.
  • Filtration is the process of passing water through material such as a bed of coal, sand, or other granular substance to remove particulate impurities that were not removed during the sedimentation process. These filters remove dissolved particles and germs, such as dust, chemicals, parasites, bacteria, and viruses. Activated carbon filters also remove any bad odours. The filters are comprised of a top layer of anthracite, a middle layer of filter sand and then a bottom layer of garnet sand and an underdrain system that collects the filtered water.

Labour/Man Power Required For Mineral Water Plant Business-

Well, most business people took the wrong step here by thinking they alone can do it all by themselves or just help with their family members. But keep this in mind hire at least 2 staff for the mineral water plant business, who can help you with the distribution of your water jar by driving your vehicle.

Mineral Water Plant Business Raw Materials-

  • Raw Water
  • Some Chemicals For Purification

Mineral Water Business Investment:-

Now after choosing the best location for your mineral water business. You have to do some investments in multiple assets. We will all take a rough idea, so it might be something different in your numbers but yes the calculation for mineral water business investment is quite similar. Let’s understand one by one;

Total Set-up Cost₹5,00,000
ParticularsAmount
Machinery₹1,80,000 – ₹3,00,000
2nd Hand Vehicle₹3,00,000
20 ltr Jar (150 pcs×100)₹15,000
Other Expenses₹5,000

Jar Cap’s usual price is ₹400 for 1000 pcs.

  • So, Raw Material & Caps = ₹5,000
  • License Cost =                      ₹20,000
  • Labour Cost =                       ₹20,000
  • Electricity =                           ₹10,000

Mineral Water Business Profit Calculation-

If you are selling daily 200 jars @ ₹20 per Jar. then your daily sales will be ₹4000.

Daily Fuel Prices = ₹500

Packaging Caps = ₹100

Other Expenses = ₹400


Total Making Cost     = ₹1000

Mineral Water Business Profit-

Profit = Selling Cost – Making Cost

₹4,000 – ₹1,000

₹3,000

If the daily profit is ₹3,000 by selling 200 jars, then the monthly calculation will be ₹3,000 × 30 days = ₹90,000.

Electricity         = ₹10,000

Staff                 = ₹20,000

Other Expenses= ₹10,000



So, Total Sales = ₹90,000

Total Expenses = ₹40,000

Total Profit      = ₹90,000 – ₹40,000

                         = ₹50,000/Monthly

Marketing Strategy For Mineral Water Business:-

So, there is a very famous quote for marketing;

“Advertising brings in customers, but word-of-mouth brings in the best customers.”

To increase sales of your mineral water business you have to keep these points always in your mind.

  • Supreme Hygiene And Cleanliness
  • Ads in Local Newspaper
  • Awareness Campaigns
  • Event Sponsorships
  • Tie up with Hotels, Restaurants, Apartments, Houses, Party Functions, Hospitals, Etc.

Challenges in Mineral Water Business:-

  • Lack of Mineral Water Business Plan
  • Laws & Regulations
  • Water Crisis
  • Employees Management
  • Natural Factors

Solutions to Problems in the Mineral Water Business:-

  • Lack of Mineral Water Business Plan
  1. Planning about how to start mineral water business is the very core term you must keep in mind. You should have a clear vision of your business’s present position and its future position, where you want to see your business be reached.
  2. Start writing about your complete mineral water business plan, like, initial set-up cost, target customer, location for your business, pricing for your 20 ltr jar, quality, etc.
  • Laws & Regulations

As we have touched on some of the required licensing for the mineral water business. Also, you must have to aware of your local authorities and regulations to start any kind of business. All you can do is get in touch with a government official for more details.

  • Water Crisis

What actually happens is after some time of business running, the depth of water from the source is tardily decreasing or comes to an end. So, you should have to choose your plant location very carefully. You can choose it nearby Borewell, River, etc.

  • Employees Management
  1. Don’t rush to hire. Take your time and hire trusted and hard-working employees.
  2. And to retain your employees you should focus on their pain points. Make a good relationship with them.
  • Natural Factors

The most common natural factor that can affect the mineral water business is drought. So, you should be ready to pivot the water source location and be prepared financially for natural disasters.

Conclusion:-

To sum up, considering all these points, a mineral water plant business will be a good business idea. However, running this business needs a lot of groundwork like complicated steps where untreated water undergoes numerous filtration processes. So, it is advisable to dig down and avail more clarity on your business goal because the cost of setting up a mineral water plant business is proportional to the volume of pure water that you wish to produce. If you have any doubts regarding how to start mineral water business you can contact us. Good luck!

FAQs:-

Q. Is mineral water business profitable?

Ans. So, mineral water business profit completely depends on your sales and what kind of market you are targeting. And the ideal profit margin to be set in the mineral water plant business is somewhere between 25% to 40%.

Q. How much money is required to start a mineral water plant?

Ans. So, as we discussed in our article if you set up a 20ltr jar mineral water plant business then the ideal capital required to start is ₹2,00,000.

Q. How do I start a mineral water business?

Ans. 1) Finding a good location for water sourcing 2) Obtain mandatory licensing 3) Machinery 4) Investment 5) Marketing 6) Profit.

Q. Is setting up a mineral water plant business a good idea?

Ans. Well, the best ever time to start this business and grow exponentially is in February and March month because of the summer weather. But if you start mineral water business in other months you can easily earn a profit margin of up to 40%.

Q. How do you make mineral water rich?

Ans. You can first choose a good source of underground water that is already rich in minerals and if can’t, you can add Epsom salt, which is also known as magnesium sulfate, Water filtration system, Electrolyte Powder, etc.

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