Water production as a business: the basics of good money
Making drinking water is a profitable business idea that guarantees a stable income.
You need to start organizing production by looking for a source of raw materials and premises where the enterprise will be located. Then they start purchasing equipment, recruiting personnel and preparing documents.
After the launch of the project, they move on to searching for sales channels for products, studying the target audience. Each stage has features, the knowledge of which will help to build a business correctly and receive regular profits.
Is it profitable to sell water
The content of taps and wells is a product of dubious purity with an unknown composition. Tap liquid has a cloudy, yellow tint and smells damp. And in old pipes, there are often colonies of microbes - causative agents of dangerous diseases.
Many people prefer to buy filtered water. Consumers need it constantly and in large volumes. There is always a demand for drinking water. It can be sold to individuals and various organizations - offices, kindergartens.
The cost of 1 liter of water will be 3-4 rubles. And you can sell 1 liter at a price of 10 rubles. and more. For a standard order of 40 liters, the profit will be 240 rubles.
Further income depends on the level of productivity of the enterprise. And with the correct organization of the business, all opening costs will pay off within 1-1.5 years. Then you can count on the net profit.
Water quality requirements
Water of the highest category is extracted from springs and underground sources in places with perfectly clean ecology. Special requirements are imposed on it. The water should not contain:
- toxins ;
- salts ;
- heavy metals;
- organic substances;
- halogen free.
Excess harmful components are removed from the liquid by filtration. In conclusion, remineralization is carried out - the natural composition of water is restored by adding iodine and fluorine.
The production of drinking water is more relevant than ever in business today: the consumption of bottled water is increasing by several percent annually. This is due to the fact that water from city sewer pipes is not suitable for consumption or cooking, if it is not boiled and then additionally filtered. But even this does not guarantee its one hundred percent cleansing from harmful bacteria and pathogens of intestinal diseases.
The filtration option is permissible in an apartment, but if we consider the possibility of obtaining drinking water in private houses and at industrial enterprises, the question immediately arises of cleaning with industrial filters or purchasing a liquid ready to use. Only large manufacturing companies can purify tap water using filters, while carrying out the necessary studies for the purity of its composition. They usually have a laboratory engaged in chemical research and are always ready to provide papers on the chemical composition of water. Small firms constantly use the services of private companies that sell drinking water in large containers.
Drinking water production as a business is organized by both one entrepreneur and a group. The scale of the city in which it is worth doing business can be anything, since even with the existing competition, the quality of the product is the primary factor. The main condition for a successful business is good equipment that will allow for a complete water purification.
The positive side of this type of activity is the constant need of people for such products, which makes it possible to open a business even in a small settlement. The disadvantages can be considered a large initial investment and the presence of competitors. The production of drinking bottled water is the most profitable option for the enterprise, since in this case it is possible not only to filter the water, but also to sell it and deliver it to customers.
Equipment for the production of drinking water
If you buy water taken from sources, which requires filtration from impurities and chemical treatment, you will need a room to install all these bulky devices. To obtain drinking water you will need:
- tanks for liquid storage,
- devices for preliminary (mechanical) water purification,
- filters for deep purification from impurities, li >
- sterile tanks,
- conveyor machines for filling and sealing bottles,
- automatic labeling line.
A business that involves drilling its own well and filtering water from it is a costly production that will require the purchase of a plot of land. Drilling will be carried out on its territory. The drilling rig can be rented, after which a pumping station is installed on the site, pumping out water from the source, and several tanks into which water is poured. Delivery of water from the well to the workshop is carried out using trucks, so the company must have its own vehicle fleet or leased vehicles.
Water is delivered from the well to the workshop, where it is poured into large tanks. After that, it goes through the first stage of cleaning, according to the results of which all mechanical impurities and suspensions are removed. Further cleaning from suspensions takes place on expensive equipment using sand, carbon filters. Then the water is chemically completely purified from bacteria, parasites and all harmful substances. Next, the percentage of mineral salts in the water is adjusted, softened, saturated with oxygen, treated with ultraviolet rays or ionized. It is important to observe the percentage of chemicals in the composition of water (SanPiN 2... 16 02, GOST R 52109-2021).
Business plan - a smart approach to entrepreneurship
A business plan for the production of drinking water should include standard calculations and a description of the key aspects of opening this type of activity. It is important to understand that the actual payback period of a business can be shifted due to high costs for equipment or advertising.
SUMMARY OF THE PROJECT
The goal of the project is to create an enterprise for the extraction and bottling of artesian water. The feasibility of the project is due to the growing popularity of this product both for use in offices and for home use.
Production location - x. Pukhlyakovsky, Rostov region. Sales region - Rostov-on-Don and Rostov region. Price segment - "Standard +". The production facility is supposed to be leased, delivery is carried out by our own transport. Distribution is carried out through an affiliate network of stores. The VodoPukh trademark and trademark are registered.
The project is attractive for investment, which is confirmed by financial calculations and the resulting integral performance indicators (Table 1).
Table 1. Integral indicators of project efficiency
COMPANY AND INDUSTRY DESCRIPTION
The company carries out activities for the extraction and bottling of artesian water in 19-liter bottles. The main consumers of this product are organizations of any field of activity and of any size; the use of bottled water for household needs in our country is insignificantly developed, but it is gaining more and more popularity. Today, according to various sources, in Russia the consumption of bottled water per person is about 40 liters per month; in Europe, this figure is in the range of 100-150 liters. Thus, we can confidently speak about the significant growth potential of the industry. It should also be taken into account that Russia and, in particular, the Rostov region, have large reserves of fresh water, which has a positive effect on the cost of the final product.
According to Rosstat, more than 5,000 small and medium-sized businesses operate in the Rostov region. If we take the average number of the company at 20 people, this amounts to 100,000 potential customers. Based on the monthly water consumption of 40 liters per month, of which about 75% of the person consumes at the workplace, the total need for water supply of organizations is 100,000 * 40 * 0.75 = 3,000,000 liters per month. It is extremely difficult to estimate the number of households and their water consumption, but we can say that it is not less than the water consumption by organizations.
The competitive environment in the region is represented by the three largest suppliers, two of which both produce and distribute through a network of their own stores (1 and 3 own brands, respectively), and one is an aggregator distributor that brings water into the region from other regions (7 brands in different price segments); in addition, there are about 10 regional manufacturers in the region that produce products of the budget segment and carry out distribution through the village grocery stores, in large cities of the region they, as a rule, are not present.
The technological process includes lifting water from a pre-drilled well, cleaning it, softening and decontaminating it, and then bottling it. After that, the water is delivered to the points of sale by our own transport. The sale is carried out through a network of partner stores. The competitiveness of the enterprise is ensured by the high quality of purification and organoleptic properties of water, provided by high-quality water treatment.
The company extracts water from an artesian well located in the Pukhlyakovsky farm in the Rostov region. The water of this region is characterized by high softness, as well as low acidity and content of metal impurities. By processing on special equipment, the water is filtered, disinfected, and its organoleptic properties are increased.
The quality of bottled drinking water is regulated by SanPiN 2.. ... 116-02. According to this regulation, all drinking water is divided into two categories: 1st category and the highest category. "VodoPukh" belongs to the highest category, which will increase the profitability of the enterprise due to the higher selling price, and, accordingly, increase the company's marginal income.
Any food and liquid must be of good quality so that a person does not face serious poisoning and illness. The requirements for water are even tougher, because no life is possible without it. But there are few reserves of pure natural water that can be drunk without preliminary treatment. The tap liquid has to be passed through a filter, defended or boiled. But, when thirst torments, there is no time and desire for such procedures. It's easier to buy bottled water at a store or order it home through a delivery service. There is never enough drinking water, but the demand is growing. This enables the entrepreneur to develop a business plan for the production of drinking water and offer his assortment on the market.
To understand what investments are needed to implement the idea, it is advisable to prepare a business plan for the production of drinking water with calculations. It can be presented as an illustrative example for banks or other partners who decide to help financially.
It is planned to launch the production of carbonated and non-carbonated drinking water without any additives. The main activity is aimed at the production of soft drinks.
Raw materials will come from a personal well. The deposit was found, the quality and composition of the water was determined in the state laboratory. The well is located in a wooded area. There is no opportunity to establish production directly at the source. Therefore, water will be pumped into reservoirs and delivered to a production facility located in the suburbs.
Premises: 2-storey building with adjoining territory. The area of the premises is 300 sq. m. On the 1st floor there will be a workshop and a warehouse, on the 2nd floor there will be rooms for staff and administration. The building requires repair and redevelopment, communications.
Form of activity: LLC (limited liability company). Activity code No. 11. 7 - "Production of soft drinks, various drinking water in bottles".
Taxation - simplified (STS).
List of services
Production: daily from 09.0 to 19.0.
The quality of the water supplied by the central water supply is poor. Everyone knows that this is far from the highest quality and environmentally friendly product. Tap water is often cloudy, yellow and smells damp. In addition, colonies of microbes can develop in old water pipes, which later become the cause of the development of many diseases. Therefore, its use is undesirable without additional filtering.
How demand is generated
In order to prevent unpleasant consequences, many residents of our country buy bottled water. And since demand creates supply, the drinking water business is truly a gold mine.
And if you decide to use water production as a business, then first of all you should decide from which source this resource will be extracted. The purchase of equipment necessary for conducting such activities directly depends on this.
The main sources of drinking water production are:
- Own well.
- City water utility.
- Spring water.
It should be understood that regardless of the chosen option for water extraction, it must be filtered using high-quality industrial equipment. The final product must be free of all impurities, being absolutely safe for human health.
The specifics of business on water
To build a profitable drinking water business, there are a number of important things to consider. And to understand the specifics of this activity, one should consider its advantages and disadvantages. Business has the following advantages:
- Water is the main product for maintaining human life. It is an essential product that is not only consumed in its pure form, but also used to prepare a number of dishes. Therefore, a business based on the production of drinking water will be profitable.
- Such a business can be organized in almost any locality. Using modern filtration systems, it is possible to purify water obtained from almost any source.
- The water business does not require significant financial costs. This is especially true of those entrepreneurs who are engaged only in the sale of a product, not related to its production.
- Fast payback. With the right approach, you can reliably gain a foothold in the drinking water market and very quickly recoup all costs, having received a stable profit.