By Tope Babatope
Start up cost:
N3million to N4million.
Advertising: Hand bills, complimentary cards, after NAFDAC approval- TV, Radio, newspaper adverts.
Why it’s a good business to start:
The demand for bottled water is greater than the supply. The table water project has great commercial prospects. The raw water or raw material is almost freely obtained from natural sources.
Our investigation revealed that the market is currently far from being saturated with the product. Table water is in high demand nowadays for both domestic and social use. You cannot liquidate, if in the business.
The person starting the business must possess managerial ability, marketing zeal and be hygienic. In house environmental scientists, microbiologists and so on would be of great assistance to you, if you are not science oriented. However, anybody can do the business but the basic academic qualification is needed.
Total number of workers needed to run the factory may not exceed 10 persons.
Equipment/Raw Materials Needed:
Water-borehole, factory, water treatment plant, PVC tanks, pipes, purification chemicals, composite filter and water deionizer, quality control laboratory, plant and machinery- 50kva generator.
When you want to establish a standard bottled water factory, you must also ensure that the source of the water is either a natural spring, municipal water or borehole. Considering the consumable nature of the product, our source explained that nearness to the market should be a major factor to be considered in setting up the factory.
After making up your mind to embark on table water factory, get in hand at least N2.5million to N3.5million. The capital outlay may be sealed up or down depending on the pocket of the investor.
A business consultant, explained that the project would make sense either as a typical family business, community project, senatorial special project, adding that, it really depends on the prevailing circumstances- the movies, availability of funds, risk adverseness , economies of scale among others”
From the sum at hand you will sink a borehole costing about N500000 or you go for municipal water but you will need PVC tanks for storage and not vulcanized tank because of its poisonousness. Get two standard plots, a small building costing about a million Naira or less or on leasehood .you need a generator that will serve as standby- a 50kva generator costing about N1million. You will equally need a treatment plant costing about N450000, containers of different suitable sizes specially designed to meet the needs of the middle and high income consumers will be needed for the business, so earmark about N200,000 for these and labeling .
A close source said for your plant and machinery , you can earmark about N1.5million. Our investigation revealed that a very small water processing plant could process and package up to 5 cubic meters or 5000 liters per day or 1.4 million liters per year under the assumption that there would be 280 working days in a year or a realistic capacity utilization of about 75 percent.
By this arrangement, the plant would produce and package about 250,000 cartons of the 60cl bottle per annum with an expectation of about N6.9m in revenue.
Bottom Line Advice:
In an interview with a Director of Feotamy Water Company, Mr Funso Akerele, he advised that anyone going into the business should endeavour to register their product with the National Agency for Food and Drug Administration and Control NAFDAC and try to comply with the agency’s guidelines and product standard specifications.
He pointed out that the investor must ensure he or she uses wholesome water that is safe for drinking. Another source advised that investors should not seek short cuts as these may boomerang.
How your name appears on the bottle and carton is also important, our source emphasized that a good printing attracts buyers because it is a good advertising strategy.