How to start a pure water production business.


 Pure water production: pure water is a very popular product in Nigeria. And it also in a very high demand. Millions of sachets are consumed on a daily basis. In urban centers almost everybody drinks at least two sachets of pure water in a day.


This is one business I will recommend to any smart individual provided he will do the required task. This business may require large sum of money to start up, but I can assure you that if the right marketing strategy is employed in less than two years you must have gotten your overhead back.

The major regular expenses in this business would be buying nylon (wrapping nylon) and fuel (for generator and distribution van).



Now let begin with the step by step process

(1)  Get your business plan:  your business plan as I have said is a written document that explains how you intend to go about your business. Which include your operational objectives, operational cost, equipments, marketing strategies, market research and management.

Your business plan can be used to get loan or grant from banks, in case you intend to borrow from the bank. Your business plan helps you in that it serves as a directional plan for your business. Develop a detailed business plan. A good detailed business plan may cost you some money.

(2) Get your premises:  One plot of land can serve. Something bigger will be cool especially if you want to build a large factory. Off course that will depend on your funding. A bungalow with stores and other offices in it. Buying a plot of land (100 by 100) in mararaba area would cost from N600,000 – N3,000,000 depending on the location. Building a bungalow, with stores and offices (direct labour) would cost N3,000,000 – N5,000,000 depending on the size. Which include sinking of bore hole.

(3) Distribution System:  After sinking your borehole the next thing would be setting up a water distillation system. Distribution is the most effective method of water purification. Other method would be reverse osmosis system, which is cheaper than the distillation system and are commonly used. The distillation system even though is a more expensive way of purifying water can remove biological waterborne contaminates.
Reverse osmosis is the most widely used in Nigeria which is also easier to install.




Picture of reverse osmosis water purification system



Picture of koyo water machines 3 stage table use ozone water purifier


                                                    

Simple distillation cost like N1,000,000 to N2,000,000, but a standard distillation system installation cost N10,000,000.

(4) Sealing Machine: An automatic sealing machine which seals about 40 sachets in one minute will be a good idea for your business. If you intend to produce more, then you may need 2 of this machine.the machine goes for N400,000 to N500,000. Koyo sachet water sealing machines uses micro processor and automatic photocell. 




                      Picture of Koyo water sachet sealing machine

(5) Your Generator: Because of the load involved your generator has to be like at least 25kva generator.

(6) Get License: In Nigeria NAFDAC is the body responsible for licensing prospective pure water company visit the NAFDAC office close to you. Get every detail required of you. It may take from 3 to 6 months before you will be licensed. The processing fee for water production is N40, 000. Now

(7)Buy a supply van: Get a very good supply van. When you want to get a truck consider carefully, because this is actually where most pure water companies make mistake. Get a good van.

(8) Staffing: below are all the basic staff you would need to start except if you are staring very big.
 Driver and Loader
 Security Men
 Operators and Packagers
 Marketers

Analysis base on assumption
Let assume that you have all your equipment ready.
Let also assume that you have two sealing machine.
Now: if one sealing machine can produce 40 sachets in one minute which is 2 bags of pure water then in one hour you will be producing 120 bags. Meaning that in 5 hours you will be producing 700 bags. Now let also assume that you only work for 5 hours a day. Meaning that the two sealing machine will produce 1,400 bags in a day. Now let multiply by the selling price, one bag goes for as high as N100 – N80 naira. 1,400 X 70 = N98,000.

Now the major aspect is the marketing area. After putting all of these things in place your next concern should be marketing. Do all you know to do to always increase sales, as more sale equals to more revenue.
Invite professional to help you do your branding. There is a ready market for this business all you need to do is just produce. This business requires little acquisition of raw material as water is already on the ground.   

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