PROJECT PROFILE ON PACKAGED DRINKING WATER
Packaged Drinking Water
NIC Code (1998)
57.55 lakh bottles (` 359.68 lakh)
Year of preparation
Micro Small and Medium Enterprises-Development Institute Govt. of India Kanjani Road Ayyanthole, Thrissur-680003 Tel. No. 0487-2360536/2360686 Email: [email protected]
Web site: www.msmedithrissur.gov.in
INTRODUCTION Water forms an essential part of every human being. Since it is a human necessity it makes best sense to do business in. As a normal human being requires an average of 2-3 liters of water everyday and world population is more than one billion (growing at 2-3% annually) the business opportunity is enormous and the potential is largely untapped. The bottled water industry is estimated to be a whopping `. 1600 crores business. It has grown at a rate of 38-40% annually over the past four years. Initially bottled water brands like the French manufactured Damone were promoted at clubs, fitness centers, cinemas, department stores, malls, ice-cream parlors, cafes and retail sports outlets, besides restaurants, hotels and supermarkets with a price tag of ` 70/- for 1 liter bottle. Other brands later began pitching for the larger middle class and lower middle class markets. PLANT CAPACITY PER ANNUM The unit is proposed to produce 57.55 lakh bottle (1 liter) of packaged drinking water per annum. MARKET & DEMAND ASPECTS Earlier bottled drinking water was privileged to high class, foreign tourist and highly health conscious people but the present decade has witnessed increasing popularity among average consumers, increasing living standards, disposable income, education and awareness among the consumers domestic and foreign tourist, sophisticated business houses and offices has increased rapidly the sales of bottled water in recent years. The growing demand for bottled water speaks volumes of the scarcity of clean drinking water and the quality of tap water. It has become an icon of healthy lifestyle emerging in India. Selling – ‘safety’ – i.e. pure and simple water has now become one of the fastest growing industries in India despite the harsh truth it is build on the foundation of bad governance, inequality and obvious exploitation. However, bottled water provides the 2
distance advantages of convenient packing, consistent quality and is ubiquitous. This particular industry in India has never looked back after the economic liberalization process of 1991-92. In fact the fastest growth in the consumption of bottled water in the world has been recorded in India according to a new study conducted by the US based earth policy institute. According to Bureau of Indian Standards (BIS), there are 1200 bottling plants (out of which 600 are in the state of Tamilnadu) and 200 brands of packed drinking water across the country (nearly 80% of which are local) hitting over the markets which thoroughly signifies the market is big, even by international standards. These are boom time for the Indian bottled water industry – more so because the economics are sound. India is the tenth largest bottled water consumer in the world. The consumption of smaller units of 500 ml has increased by around 140% perceptibly. Even school children are carrying the 500 ml packs in their school bags. The 20 liter bulk water jars have found phenomenal acceptance in house hold and at workplace. With the growing market size, one can imagine the employment opportunity being created with the surge in bottled water industry.
The bottled water market is dominated by major player such as Cococola, Pepsico, Parle K.K. Beverages, Manikkchand, Tata-Mount Everest. Although we have a large number of players, Parle was the pioneer among the major player when it was launched in India, 35 year s ago. Market segmentation of bottled water in India Segment Share (%) North 25 East 10 West 40 South 25 Source: Indiastar.com RAW MATERIALS 3
The main raw material is water which is purified and made into finished product. PROCESS OF MANUFACTURING The water is processed with multi stage purification processes such as – sand filter, activated carbon filter, ultraviolet disinfection, ultra filtration, Reverse Osmosis and Ozonization. Sand filter Eliminates load of total suspended solids in the raw water Activated carbon filter This filter removes most of the organic contamination and pesticide residuals from the water. It also controls taste and odor of water Ultraviolet disinfection (UV) Water is exposed to UV light of wavelength 245 nanometers (nm). A dosage of 16000 microwatt/sq.cm at 40˚ C for effective disinfection Ultra filtration A low pressure membrane process that removes dissolved organic macro molecules, viruses, pyrogen enzymes etc. Reverse Osmosis This process eliminates dissolved impurities like unwanted salts and retain minerals which are essential to human body Ozonization This is the strongest oxidizer and disinfection agent which acts on broad spectrum of microbiological organisms. Filtration This pumps water through a microscopic filter that is rated for a certain size organism. The standard size rating is the micron Capacity flow rate 1000 lit/hour Raw water quality (assumed) 1000 ppm as TDS Motive power 1KW
BASIS AND PRESUMPTIONS This project has been drawn on the basis of following presumptions: 1 2 3 4 5 6
7 8 9
Working hours per shift No. of shift /day No. of working days /annum Handling loss of Bottles per year Working efficiency Total Period for achieving maximum capacity utilization
8 3 300 5000 75% From the date of commencement of production Margin Money 25% pf capital investment Rate of interest of capital 14% per annum Constriction cost of building, coast of land, labor charges and cost of plant machinery and equipment have been considered as per prevailing rates in the market. Cost of installation and electrification of machinery and equipment has been taken at the rate of 10% of the cost of plant and machinery
PRODUCTION CAPACITY: It is assumed that the unit is utilizing 75% of the installed capacity. UTILITIES: Motive Power: 50 HP FINANCIAL ASPECTS A) Fixed Assets i) Land & Building Sl.No
Amount (in Rs. `) 5
Land 0.5 acres Built up area required for filtration, raw material storage, packaging material storage, machinery spare parts, store, finished goods, office, QC lab, Toilets, Electrical switch room and miscellaneous etc. 6500 sq.ft. @Rs.800 per sq. ft. Total
ii) Plant and Machinery Sl. No. 1. 2. 3. 4. 5. 6.
Alum doses 3 liter/hr dosage 2 nos. pump (1 W +IS) (SS) Activated carbon filter flow rate 2000 lit/hr Pressure sand filter flow rate:2000 lit./hr Softener Reverse Osmosis system permeate flow 500 lit/hr consist of 5 micron filter SS-304 PP H.P. Pump with 3 HP Motor Membrane 4 nos. Pressure vessel Ozone generator Capacity – 1 gm/hr Flow fate – 1000 lit/hr UV disinfectant flow rate-1000 lit/hr Storage tank for pure water capacity :1000lit Bottling section
Amount (in Rs. `)
1 1 1 1 1
1561906.75 Say 1562000
Stainless Steel Conveyor: Made of S.S, 8 meter long for conveying of empty washed bottles onto the filling machine. The different operations like rinsing, filling, capping are done on the conveyor. Electrical Details: 0.5 H.P. with variable speed drive.. Rinsing, Filling, Capping: This machine is designed to fill 24 bottles per minute for 1 ltr bottle & is capable to fill 500 ml, 1000 ml, 1500 ml bottles. Machine speed is depended on the volume to be filled. The bottles are hold in groups of 6 & moved on the conveyor together. These grouped bottles are rinsed by means of spraying pressurized water inside the bottle. After Ringing the bottles are again placed on the conveyor & are loaded on the filling & capping machine one by one. Filling & capping takes place by indexing mechanism. There are total 8 indexes. Change parts for 500 ml and 1500 ml 1 set each Spare for item 2 for 2 years
1 set each
1499025 say 1500000/-
Shrink Tunnel: This is fitted on the online conveyor to shrink labels and neck sleeves. The labels & neck sleeves are to be manually inserted on the bottle. Machine will be provided with suitable capacity Heaters, Blower, Reduction Gear Box and Electric Motor, complete in all respects ready to use. Printing Machine ( for mfg. Date & batch nos.) Semiautomatic machine is proposed. This is a table top coding machine with a printing area of 35 mm x 25 mm & capable of printing 3 variable line message on labels or caps. Electrification and installation charges @ 10% of plant and machinery Total
ii) Sl.No 1 2 3 4 5
Other fixed Assets Description Cost of furniture Cost of deep bore tube well for water reservoirs Security deposit to Electricity Deptt. Preliminary and pre-operative expenses Delivery van Total
Total Fixed Cost 8
Amount (in Rs.) 50000 150000 100000 150000 350000 800000
Sl.No 1. 2. 3.
Description Land and building Plant and machinery Other fixed assets Total
Amount (in Rs.) 5500000 3592658 800000 9892658
B) Working capital (per month) i) Sl.No 1 2 3
Raw material Description PET/PVC bottle including cap labels etc. 1 lit size @ 4/- 4.80 lakhs bottles Chemicals and Reagents etc. (L.S.) Corrugated boxes, strips tap etc. Total
Salary and Wages Designation
Sl. No. 1. 2. 3.
4. 5. 6. 7. 8.
Factory Manager Clerk-cum Typist Store cum purchase officer Accountant cum cashier Sweeper Production Manager Lab Assistant Supervisor
Amount (in Rs.) 1920000 50000 250000 2220000
1 1 1
8000 6000 5500
Amount (in `) 8000 6000 5500
1 1 1 1
2000 10000 5000 6000
2000 10000 5000 6000
Skilled worker Unskilled worker
Total Perks and benefits @ 8.5% of salary and wages Total say
14000 10000 73500 6248 80000
iii) Utilities Sl.No 1. 2.
Description Electricity Fuels and others Total
Amount (in Rs.) 100000 5000 105000
iv) Other contingent expenses Sl.No 1. 2. 3. 4. 5. 6. 7. 8.
Description Postage and stationery Telephone/Fax charges Consumable stores Repairing and maintenance Transport Charges Advertisement and Publicity Insurance & Taxes Other Expenses Total
Amount (in `) 500 5000 1000 5000 2500 5000 500 10000 29500
Working capital per month Sl.No 1. 2. 3. 4.
Description Raw material Salaries & wages Utilities Other contingent expenses Total
Amount (in Rs.) 222000 80000 105000 29,500 2434500 10
Total capital investment Sl.No 1. 2.
Description Fixed assets Working capital (for 3 months) Total
Amount (in Rs.) 9892658 7303500 171,96.158
FINANCIAL ANALYSIS A)
Cost of production per annum
Sl.No 1. 2. 3.
Description Working capital (for 1 year) Depreciation on building @ 5% p.a. Depreciation on plant and machinery @ 10% Depreciation on furniture @ 20% Interest on TCI @ 14% Total Say Turnover
Amount (in Rs.) 292,14,000 2,60,000 3,59,265
Description By sale of 57.55 lakh bottles @ 6.25/bottle
Amount (in Rs.) 3,59,68,750
B) Sl.No 1.
C) Sl.No 1.
10,000 24,07,462 322,50,727 3,22,50,000
Profit (per annum) Description Profit = Turnover- Cost of production ie; 359,68,000 – 3,22,50,000 Net Profit ratio 11
Amount (in Rs.) 37,18,000
E) Sl.No 1.
Description Net Profit ratio = Profit x 100 / Turnover ie; 37,18,750 x 100 / 3,59,68,750
Value (in %) 10.34
Rate of return Description Rate of return = Profit x 100 / Total capital investment ie; 37,18,750 x 100 / 1,71,96,158
Value (in %) 21.63
F) Fixed Cost Sl.No 1. 2. 3. 4. 5. 6. 7.
Description Depreciation on building @ 5% p.a. Depreciation on plant and machinery @10% Depreciation on furniture @20% 40% of salary and wages 40% utilities and other expenses Total interest Tax and insurance Total
Amount (in Rs.) 2,60,000 3,59,265 10,000 3,84,000 6,39,600 24,07,462 6000 40,66,327
G) Break Even Point Sl.No 1.
Description Break even point = Fixed cost x 100 / Fixed cost + Profit ie; 40,66,327 x 100 / 40,66,327 + 37,18,750 = 40,66,32,700 / 77,85,077 12
Value (in %) 52.23
ADDRESSES OF PLANT & MACHINERY SUPPLIERS 1.
MR VINOD D V-TECH WATER TECHNOLOGIES (I) PVT LTD NO 10, NEAR LIONS CLUB KALYANAMANDAPAM, VALLUVAR STREET,SIVANANDHA COLONY, GANDHIPURAM, COIMBATORE – 641012 TEL: +(91)-(422)-4213005 , +(91)-9842424499 FAX: +(91)-(422)2493736 EMAIL: [email protected] [email protected]
I - TECH SYSTEMS 473, C. S. R. BUILDING, BROUGH ROAD, ERODE - 638 001, INDIA PHONE: +(91)-(424)-2265188/2260238 FAX: +(91)-(424)4020098 MOBILE / CELL PHONE: +(91)-9787778888 WEBSITE: HTTP://WWW.THEWATERMILLS.COM/
TOOL TECH NO.21, C. I. E. GANDHI NAGER, BALA NAGAR, HYDERABAD - 500 037, PHONE: +(91)-(40)-65271840/23081849 FAX: +(91)-(40)23083366 MOBILE / CELL PHONE: +(91)-9849015365 WEBSITE: HTTP://WWW.INDIAMART.COM/TOOLTECHINDIA/
INNOVATIVE SOLUTIONS FOR WATER TREATMENT ADDRESS: 4-4-70/46, KOUNDINYA NAGAR, NACHARAM, RANGAREDDY - 501507, HYDERABAD - 500 076, INDIA MOBILE / CELL PHONE: +(91)-9885655133/9848655133 WEBSITE: HTTP://WWW.INDIAMART.COM/INNOVATIVESOLUTIONS/
M/S. SONALIFABS 71, BIREN ROY ROAD (WEST) KOLKATA-61. 13
M/S. ENVIRO TECH UTILITY, 32A, MAIN PATEL ROAD, OPPOSITE WINGS SHOW ROOM, WEST PATEL NAGAR, NEW DELHI-110 008.
M/S. WATRION WATER AND FILTER ENGG. PVT. LTD. 1 HARSIVAN APARTMENT, GROUND FLOOR, (BEHIND CANARA BANK), WEST J.P. ROAD, ANDHERI (WEST), P.B. NO. 7372, MUMBAI-700 059.
M/S. RITAL AGENCIES 55 III MAIN ROAD, GANDHI NAGAR, CHENNAI-700 020.
M/S. ION EXCHANGE INDIA LTD. TICCON HOUSE, DR. E. HOUSES ROAD, MAHALAXMI, MUMBAI-400 011.
M/S. ALPHA ENGINEERING 158, POCKET-E-20, SECTOR-II, ROHINI, DELHI-110 085.
RESOURCE CENTER OF TECHNOLOGY: 1. Centre For Water Resources Development And Management Kunnamangalam, Kozhikode-673 571 , Kerala , India Tel: +91 495 2357151, 2351803, 2351804 Fax: +91 495 2351808 E-mail: [email protected]
Url : www.cwrdm.org
2. Centre for Environment Development (CED) Thozhuvancode, Vattiyoorkavu P.O Thiruvananthapuram – 695 013