Complete Guide To How To Start Water Bottle Business – Investment, Profit

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

  • The “Water Is Life” or “Jal Hi Jeevan Hai” slogan is used to convince people about the importance of water and to bring awareness among people to save water. Water is one of the most important commodities that supports life on earth but very few understand how hard is to get clean potable fresh water.
  • 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.
  • According to the Trade Promotion Council Of India, the packaged drinking water bottle market in India was valued at $24.1 billion in 2019. It was expected to reach $60.06 billion by the end of 2023 with a CAGR of 9%. But we all know how the demand for bottled water increased exponentially after the covid.
  • India ranks among the top 10 bottled water consumers in the world. According to Statista, In the year 2022, an average Indian consumed around 16.78 litres of packaged drinking water and is expected to be consumed 17.05 litres in 2023.
  • These growths for the bottled drinking water industry in India are because of awareness towards health and wellness. Yet, according to UNICEF, less than 50% of the Indian population has access to clean drinking water. So, now you know the potential to start water bottle business plan in India.

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

How To Start Water Bottle Business

    Mineral Water vs Packaged Drinking Water:-

    Before we go through the process to start water bottle 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 mineral water business for the 20-litre jar.

    • 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 and so on. 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 Start Water Bottle 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 water bottle plant is around 4000 sq ft. which can be divided for machinery, processing, and storage.
    • You can start it from beside your home and that place should have a good transport facility available and must have enough area to set up water bottle business.
    • The very important thing that most people in this business forget is you must have to take a small office in the central marketplace or like a godown so that customers can reach out to you easily.

    Water Bottle Business License-

    If you are keen to know how to start water bottle 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 :

    • Registration of your company
    • Pest control reports 
    • ISI certification by BIS
    • FSSAI
    • GST
    • Test report of raw and processed water
    • SSI registration
    • Trade license
    • Pollution control certificate from SPCB/CPCB

    Water Bottle Plant Machinery-

    This filtered water bottle is a very vast and rapidly growing business. So, in this water bottle business, you need advanced technology, mindset and machinery to be no.1 in this market.

    1. RO Purifier Plant
    2. Packaged Drinking RO Automatic Mineral Water Machine
    3. Water Bottle Cartoon Sealing Machine

    Water Bottle Business Cost

    Purification Process Of Mineral Water Bottle-

    Mineral bottled water goes through multiple purification processes starting from natural water sources and then going through multiple additions of chemicals to make water drinkable. Let’s look at these series;

    • Collect the water from natural sources, such as the ocean, groundwater, wells and springs, and municipal supplies.
    • The next step is the filtration process through techniques like reverse osmosis, seawater desalination, zonation, distillation, UV disinfection, and electro-deionization to remove the impurities of the water.
    • Then transfer the water into the chlorination tank for bubbling the chlorine gas process. It will disinfect the water.
    • Water that consists of a weird flavour or taste will leave a bad impact on the market. So, some water supplies use sand filtration to trap undissolved impurities in the water, then carbon filtration to remove odour and colour.
    • Now using bottle-filling machines fill the bottle with water. And after filling there is a use of ozone generator to seal the bottle with caps via the capping process.

    Labour/Man Power Required For Water Bottle Business-

    • 2 Skilled Labour
    • 5 Un-skilled labour for packaging
    • 10 labour for distribution

    Water Bottle Business Raw Materials-

    • Multiple sizes of bottles (0.5 ltr, 1ltr, 2ltr, 5ltr)
    • Caps
    • Chemicals
    • Packaging – Cartoon & Plastic bottle labelling

    Water Bottle Business Investment:-

    Now after the initial guide for the water bottle business in India, 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 the mineral water bottle business cost is quite similar. You have to do some investments in multiple assets. Here we have taken 3 major initial investments (Land rent, Machinery & License Fee). Let’s understand one by one;

    Total Set-up Cost₹14,60,000
    ParticularsAmount
    Land 4000 sqft.₹20,000
    RO Purifier Plant₹3,00,000
    Automatic Packaged RO Water Machine₹10,00,000
    Water Bottle Seal Packaging₹80,000
    Water Bottle License Fee₹50,000

    Calculation of 1Litre Water Bottle Business:-

    Raw material For 1000 bottles. Bottle @3 per piece, Cap @0.25 per piece, Packaging @10 per packet, Labelling @1.2 per piece.

    Total Raw Material Cost ₹5,550
    ItemsQuantity×Per Unit PriceAmount
    1ltr Bottle1000×3₹3,000
    1ltr Bottle Cap1000×0.25₹250
    Cartoon Packaging100×10₹1,000
    Labelling Sheet1000×1.2₹1,200
    Chemicals ₹100

    Water Bottle Business Profit-

    When you sell a bottle at the price of 15/- then the cost of 1 cartoon water bottle calculation will be;

    Price of 1 Cartoon = ₹36  (12 pcs × 3)

    Cap                        = ₹3 (12pcs × 0.25)

    Cartoon                 = ₹10

    Labeeling              = ₹15

    Chemical               = ₹2


    Total                      = ₹66/Cartoon

    So, if the 1 cartoon of 1 ltr water bottle cost is ₹66 then the price of 1 bottle will be;

        = ₹66÷12

        = ₹5.5/per bottle

    Now, if you sell 1 cartoon to a distributor @ 90 then you earn 90-66 = 24 in 1 cartoon per day.

    So for 1000 cartoons:  24x 1000 = ₹24,000/day

    Monthly Income:    24000x 30 = ₹7,20,000/month

    Total Monthly Expenses₹2,65,000
    Now here are the monthly expenses:
    Monthly Rent₹20,000
    Advertisement₹5,000
    Salary (17 Staff × 10000)₹1,70,000
    Electricity Bill₹30,000
    Transportation₹20,000
    Miscellaneous Expenses₹20,000

    So, your final Profit in Water Bottle Business by selling 1000 cartons per day & 30000 cartons per month (1000×30) will be;

    Total Profit  = ₹7,20,000 – ₹2,65,000

                         = ₹4,55,000/month

    And if you can expand your production to 2x and produce ‘2000 cartons per day’ or ‘60000 cartons per month’, then;

    Monthly Profit =  ₹4,55,000 x 2 

                              = ₹9,10,000


    Marketing Strategy For Water Bottle Business:-

    So, there is a very famous quote for marketing;

    “Instead of interrupting, work on attracting.”

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

    • Supreme Hygiene And Cleanliness
    • Ads in Local Newspaper
    • Awareness Campaigns
    • Event Sponsorships
    • A Good Presence On Social Media
    • Tie up with Hotels, Restaurants, Stores, Etc.
    • Strong Distribution System

    Problems In Water Bottle Business:-

    • Lack of Water Bottle Business Plan
    • Low Sell
    • Competition
    • Cash Crisis (Credit & Capital)
    • Natural Factors

    Solutions To Problems In Water Bottle Business:-

    • Lack of Water Bottle Business Plan 
    1. Planning about how to start water bottle 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 water bottle business plan, like, initial set-up cost, target customer, location for your business, pricing, multiple sizes of water bottles, quality, etc.
    • Low Sell

    First, do proper research in the market why you are facing low sales also take feedback from your existing customers or the customers who dropped your service. As we mentioned above in the how to sell water bottle part, If you face low sales in your business you should focus on the taste of the water, event sponsorships, organising events, brand awareness, branding, storytelling, social media presence, billboard ads, etc.

    • Competition

    As this water bottle industry is becoming very lucrative and because of increasing the demand for potable water and people are getting more health conscious, many players are entering this water bottle business. But as I always say competition in any business is very fair. Because it provides you with more ways to enhance your skill to be in the market. So, take competition as a new learning opportunity.

    • Cash Crisis (Credit & Capital)

    The water bottle business is the kind of business where it takes a high investment to start and also takes time to stable in the market. Initially, you also might have to distribute the water bottles at a credit facility to the stores by giving them a competitive price. So, make sure you have enough capital for the runway for your business or set a limit of expenditure/credit limit facility. So, work smartly with proper planning and eventually, you can grow your business.

    • Natural Factors

    Water Crisis & Drought are the two main natural factors that can affect your water bottle business. So, you should have to choose your plant location very carefully. You can choose nearby groundwater, wells and springs, and municipal supplies. And 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 water bottle business will be a good business idea. However, running this business needs high investment and 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 water bottle business cost is proportional to the volume of pure water that you wish to produce. If you have any doubts regarding how to start water bottle business you can contact us. Good luck!

    FAQs:-

    Q. Is water bottle business profitable?

    Ans. Both packaged drinking water bottle and mineral water are profitable businesses. So, the water bottle business profit will completely depend on your sales and what kind of market you are targeting. And the ideal profit margin you can expect from small bottles is approximately 25% and for large bottles, it is around 60%.

    Q. How much does it cost to start a water bottle company?

    Ans. The initial setup cost of starting a water bottle business depends on the size and kind of business you want to start. Although you can start with ₹13 lakhs including machinery and licensing.

    Q. Are water bottles in high demand?

    Ans. Due to global efforts to educate citizens about the importance of recycling and upcycling plastic to reduce the use of plastic bottles, reusable plastic water bottles are in high demand and are made up of polyethylene terephthalate (PET).

    Q. How can I start a water bottle business in India?

    Ans. To start a water bottle business in India first, you have to understand the market need, location, potential consumers and customers, taste & odour, investment, profit, marketing techniques, etc. that we have discussed in our article.

    Q. How much profit in bottle water?

    Ans. Well, the average profit margin in the water bottle business easily starts from 20-30% and can go up beyond your thinking if you make it at a large scale. You can assume as high as 60% for large bottle production and as low as 15% for small bottles.

    Q. How much should I charge for a bottle of water?

    Ans. On average the fair market price for a 1-litre water bottle ranges from ₹15 – ₹20.

    Q. What kind of plastic is used to sell bottled water?

    Ans. Most bottled water is sold in reusable plastic bottles that are known as polyethylene terephthalate (PET).

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