With the fall in the quality of clean water for potable use, the demand for mineral water plant businesses is increasing in India. Therefore, people who want to start a mineral water plant business are definitely going to skyrocket their earnings if they make a systematic approach and a dynamic business plan. In order to understand the scope of setting up a mineral water business, you first need to understand what a mineral water plant actually is. A mineral water plant is a mineral water manufacturing unit that certifies good and standardized water and sells it to the customers. Usually, the plant cleans the raw water and is packaged into a bottle, along with the standardized label on each one.
Starting a water treatment plant or a mineral water plant business can be extremely lucrative. The return on investment and the consumption of mineral water is expected to rise even more in the coming years. Therefore, if you start a mineral water business, you will grow quickly for sure.
Did you know? The mineral water consumption market is expected to grow from ₹160 billion to ₹403 billion in 2023?
The Distinction Between Mineral Water and Packaged Potable Water
Before we go through the steps of starting a mineral water plant business, you must first understand the distinction between packaged potable water and mineral water. A packaged potable water plant filtrates and processes borewell water with the aid of reverse osmosis and packages it into bottles. It is important to note that this kind of water is devoid of minerals. On the other hand, a mineral water plant makes use of water from natural resources and runs filtration processes on it. What is special about water from natural resources is the fact that it contains numerous minerals. The minerals that are present in the mineral water are potassium, calcium, sodium, and so on. Now that you know the differences between these two primary categories of water, you are ready to dive in and understand the technicalities that go into this business. .
Steps on How to Start a Mineral Water Plant Business in India
The idea of getting a water purifier plant is a promising one but you must be well informed about the technicalities and how to start and proceed with your plan. The water plant needs significant capital as well as an array of power for generating profitable returns of investment. Other than this, you need specific licenses and authorization to carry out the mineral water plant business in India. If you do not have the necessary licenses, you will end up getting caught in legal complications. To avoid all this, we have put together a list of instructions that one must consider before setting up a mineral water plant.
- Obtain all the vital documents and licenses: This is the most noteworthy point of starting any business in India, let alone the water plant business. You need to prove that your business is legal. For the same, you are required to procure specific licenses in order to execute your work seamlessly and without legal headaches. Apart from licenses, you must have all the legal terms and contracts in hand. Acquiring licenses will also help you attract the right set of audiences to your business. Therefore, if you are planning to start your business in a full-blown manner, then obtain all the permits that are essential for starting a mineral water plant business. There are various types of licenses and certifications needed, depending upon the nature of your commodities you acquire for your business. The licenses and certifications vary with the nature of your business as well. For example, the license obtained for food-related business will be different from the license required for mineral water plant business.
- Trademark registration: This step is not compulsory but trademark registration protects the identity of your business and ensures that nobody can use the same name as your brand in the same or similar business class without your prior approval.
- Estimate of the total funding the plant needs: The first question you need to ask before setting up a mineral water plant business should be “What is the total cost involved in establishing the mineral water plant?” The total cost of funding your plant may require is not just the cost of a water filter or water purifier, but it comprises a lot more than that. You will need to evaluate the investment of every single asset needed to start a water plant. Here’s a list to get started:
- Water purifier/filter
- Cost of utilities
- Government license costs
- Chemicals and additives
- Infrastructural expenses
- Transformers, generators, compressors, and so on
- Water tanks and reservoirs
The Land Requirement for Setting up a Mineral Water Plant Business
Selecting the best and a suitable location is another vital aspect of setting up a mineral water plant business. There should be specific areas to be allocated for both production as well as the office premises. When finalizing the location, take the following points into consideration:
- The preferred location should be a place where water resources are readily available. Do not choose a place where water is scarce. The place you have finalized should have a consistent supply of water as well as electricity. If either of the two is missing, your mineral water plant business will not function smoothly and you will face huge losses.
- Your plant should be near the market area. It should be well connected to the market for supply runs in tough situations and in case of emergencies.
- The chosen location should have easy road accessibility.
Determine the Source of Water and Place for the Storage of the Same
This is one of the most imperative aspects to keep in mind when setting up a mineral water plant business in India. You should be aware of the fact that mineral water plants usually make use of water from natural resources such as spring water, ponds, mountain runoff, and so on. Natural resources are counted as one of the best as the water from such sources has various important minerals like iron, magnesium, calcium, and so on. This kind of water is beneficial for human consumption. After identifying the source of water for your water plant, make sure that the chosen area has a substantially big spot to store a large amount of water. A large reservoir is ideal.
Invest in the Required Tools and Equipments in Your Water Purifying Business in India
The machinery and other necessary equipment are extremely important before starting a mineral water plant. Those who have a flexible budget can easily invest in all the equipment and machine requirements. However, if you have a tight budget, you can easily lease or rent the needed machinery and equipments. We have compiled a list of all the necessary tools and equipments you need when setting up a mineral water plant business:
- Water treatment machine
- Water sterilizers
- Water dispensers and filling machines
- Water storage tanks as per the size of your mineral water plant
- Conveyors and sealers
- Bottle loading machines
- Trucks for the stock distribution
Hire Active and Dynamic Workforce
The success of every business is directly proportional to the efforts put in by the team working for it. Setting up a mineral water business is easy but consistently working to make it better is the real deal. The very first thing you will require to start a business is a team comprising the right kind of workforce. Hire people who are efficient, active, and dedicated to delivering sufficient output in your plant.
Find Sufficient Water Bottle Suppliers
Since you are going to set up a mineral water plant business, you will without a doubt supply water to the customers. Hence, you need to put effort into finding a decent amount of water bottle suppliers. They will act as conduits between you and your customers. If you have a large plant but not enough suppliers, you will face grave losses. You also need to make sure that your bottle suppliers are readily available at any time of the day.
The Scope of Setting up a Mineral Water Plant Business in India
- In India, the consumption of bottled water is mainly due to the absence of safe drinking water. Your water plant can strive to eliminate this.
- High demand for bottled water offers a lower risk.
- Water business offers quick and guaranteed returns on investment.
- Water plant business offers high-profit margins.
- People are never going to stop consuming potable water.
The production of mineral water is a complicated process where untreated water undergoes numerous filtration processes. The cost of setting up a mineral water plant business is proportional to the volume of pure water that you wish to produce. Hence, it is recommended that you dig deep and avail more clarity on your business plan before investing capital in your venture. Apart from the high-profit margin, what makes this business more satisfactory is the fact that you can open employment opportunities in your locality. You will be able to employ the people who are in need and supply your customers with clean and safe drinking water.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.