Wednesday, 30 November 2011

Start a Packaged Drinking Water Unit

   
 (234)Start a Packaged Drinking Water Unit

        

Production Capacity::45 lakh bottles of 1L capacity/annum
Uploaded on:April 2009
Product and its Applications
Most of the water borne diseases emanate from unclean water. Packaged drinking water ensures safe, clean, potable water for human consumption.
2.0 Market Potential
Though a large number of manufacturers have recently taken up production of packaged drinking water, yet there exists a wide gap between demand and supply. A number of units can be set up in different parts of the country to meet the local demand in institutions, hotels, restaurants, offices, tourists, households and individuals.
3.0 Basis and Presumption
a) The unit will work for 300 days per annum on 3 shifts basis.
b) The unit can achieve its full capacity utilization during the 2nd year of operation.
c) The wages for skilled workers are taken as per prevailing rates in this type of industry.
d) Interest rate for total capital investment is calculated @ 12% per annum.
e) The entrepreneur is expected to raise 20-25% of the capital as margin money.
f) The unit would construct its own building.
g) Costs of machinery and equipment are based on average prices of machinery manufacturers.
4.0 IMPLEMENTATION SCHEDULE  
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
Scheme preparation and approval
:
01 month
SSI provisional registration
:
1-2 months
Sanction of financial supports etc
:
2-5 months
Installation of machinery and power connection
:
6-8 months
Trial run and production
:
01 month
5.0 Technical Aspects
5.1 Location
The plant can be located at any suitable place where availability of clean water, power, PET bottles and market access is ensured.
5.2 Process of Manufacture
The process consists of following steps:
5.3 Quality Control and Standards: As per BIS requirements
6.0 Pollution Control
There is no major pollution problem associated with this industry except for disposal of waste water which should be managed appropriately. The entrepreneurs are advised to take “No Objection Certificate” from the State Pollution Control Board.
7.0 Energy Conservation
Suitable measures shall be taken to conserve electricity.
8.0 Production Capacity
Quantity
45 lakh litre/annum (15,000 L/day)
Installed capacity
20,000 L/day
Optimum capacity utilization
70%
Working days
300/annum (3 shifts)
Manpower
17
Utilities

Motive Power
40 kW
Water
25 kL/day
9.0 Financial Aspects
9.1 Fixed Capital
9.1.1 Land & Building
Particulars
Amount (Rs. lakh)
Land 2000 m 2
02.25
Built up area 700 m 2
42.75
Total cost of land and building
45.00
9.1.2 Machinery and Equipment
Description

Amount (Rs. lakh)
UF based purification system (Sand filter, chlorination unit, UF membranes, sterilisation unit, SS silverisation unit, skid, electronic doser, ozone generator, water collection tanks, Quality control laboratory, deep bore well, delivery van, PC
:
42.00
Erection & electrification of machinery & equipment @10% cost
:
04.20
Office furniture & fixtures
:
02.80
Total
:
49.00
9.1.3 Pre-operative Expenses
Consultancy fee, project report, deposits with electricity department etc
05.00 (Rs. lakh)
9.1.4 Total Fixed Capital
(9.1.1+9.1.2+9.1.3)
99.00 (Rs. lakh)
9.2 Recurring expenses per annum
9.2.1 Personnel
Designation
No.
Salary Per month
Amount (Rs. lakh)
Factory Manager
1
13,000
01,56
Production Manager/Chemist
1
09,000
01.08
Supervisory staff
4
07,000
03.36
Office Assistant
2
05,000
01.20
Skilled workers
4
03,750
01.80
Unskilled workers
5
03,000
01.80



10.80
Perquisites @15 %


01.62
Total  
17

12.42
9.2.2 Raw Material including packaging materials
Particulars
Qty
Rate (Rs.)
Amount (Rs. lakh)
Pet bottles 1L size including caps, labels
45 lakh
3.80 each
171.00
Chemicals
LS
LS
008.00
Corrugated boxes
1,88,000/24
23
043.24
Total
222.24
9.2.3 Utilities
Particulars
Amount (Rs. lakh)
Power 140,000 kW
06.10
Water 25 kL/day
00.40
Total
06.50
9.2.4 Other Contingent Expenses
Particulars
Amount (Rs. lakh)
Repairs and maintenance @10%
04.90
Consumables & spares, others
01.90
Transport & travel
00.70
Publicity, postage, telephone
00.24
Insurance @1%
00.90
Total
08.64
9.2.5 Total Recurring Expenditure
(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4)  
241.80 (Rs. lakh)
9.3 Working Capital
Recurring expenses for 3 months
60.45 (Rs. lakh)
9.4 Total Capital Investment
Fixed capital (Refer 9.1.4)
099.00 (Rs. lakh)
Working capital (Refer 9.3)
060.45
Total
159.45
10.0 Financial Analysis
10.1 Cost of Production (per annum)Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5)
241.80
Depreciation on building @ 5%
002.18
Depreciation on machinery @10%
004.62
Depreciation on furniture @ 20%
000.56
Interest on Capital Investment @ 12%
019.14
Total
268.30
10.2 Sale Proceeds / Annual turnover
10.2 Sale Proceeds (Turnover) per year
Item
Qty
Rate (Rs.)
Amount (Rs. lakh)
Packaged drinking water in PET bottles cap. 1L, packed in cartons of 24 bottles each
45 lakh bottles
7.00
315.00

10.3 Net Profit per year
=
Sales – Cost of production
=
315 – 268.30
=
Rs. 46.70 lakh
10.4 Net Profit Ratio
=
Net profit X 100
---------------------------
Sales
=
46.70X 100
----------------
315
=
14.8 %
10.5 Rate of Return on Investment
=
Net profit X 100
--------------------------
Capital Investment
=
46.70X 100
-----------------
159.45
=
29.3%
10.6 Annual Fixed Cost
Amount (Rs. Lakh)
All depreciation
07.36
Interest
19.14
40% of salary, wages, utility, contingency
11.03
Insurance
00.90
Total
38.43


10.7 Break even Point
=
Annual Fixed Cost X 100
-----------------------------------
Annual Fixed Cost + Profit
=
38.43 X 100
---------------------
38.43 +46.70
=
45.1%
11.0 Addresses of Machinery and Equipment Suppliers  
Water Treatment Equipments, Pune
26/6, Gururaj Housing Society, Apte Colony, Bhosari
Pune - 411 039, Maharashtra, India
Email contact@watertreatmentindia.net sales@watertreatmentindia.net
Water treatments Expert Inc.
5, Main Road , Khichripur, Opposite Reliance Fresh,
Delhi-11009
Email:wtexpert@gmail.com
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 – 400 059
Sonalifabs
71, Biren Roy Road (West)
Kolkata – 700 061
Enviro Tech Utility,
32A, Main Patel Nagar Road ,
Opposite Wings Show Room, West Patel Nagar
New Delhi – 110 008
Rital Agencies
55 III Main Road , Gandhi Nagar,
Chennai – 600 020
Ion Exchange India Ltd.
Ticcon House, Dr. E.Houses Road , Mahalaxmi,
Mumbai – 400 011
Alpha Engineering
158, Pocket E-20, Sector-II,Rohini,
Delhi – 110 085

2 comments:

  1. Nice information. Thanks for sharing the article in the blog.

    thank you

    ReplyDelete