I have written article on how to start sachet water production in Nigeria before which you can find Here. However, I decided to write this additional information and clarifications which I think will be important to you as you make effort to start your pure water business. While the first article dealt mostly with merits and benefit of the business, this one will take care of the costs of the materials and breakdown of resources involved.
Pure water business in Nigeria is very profitable but requires good amount of money. If you wish to invest in this business, I can assure you of the profit provided you do your home work very well which includes properly setting up of your business and applying good marketing strategy.
What You Need To Get Started In Pure Water Business
If you are ready, here is the complete list of what is needed to start a pure water production business in Nigeria. Feel free to drop your question after reading and let’s further expand the article through discussion. If there is something you know about pure water production that is not included in this article, add it through comment.
This estimated list deals with medium scale pure water production plant, but you can use it for all size and vary the cost according to your size. WealthResult.com will keep bringing you more tips on how to excel in pure water business.
1. Write your business plan – While this article will help form the basis for your business plan, it does not replace it. You have to carefully write your business plan and how you plan to achieve your goal in the business. A detailed business plan should include everything about the business such as: The cost analysis, Market Research, Marketing, and Management. You may hire a professional consultant to help write your plan.
In case you don’t know what business plan is – Business plan is a written document that includes all details of your pure water business startup and operational objectives and strategies. Startup and operating costs, marketing advertising and sales strategies, pricing and profit margins, supplier lists, insurance information and other topics are included to give you blueprint of your business.
Your pure water production business plan can be used for obtaining business loans, securing investors and for other analytical purposes, and may be modified as the business matures to better outline and guide future operations. So, it is a very important document you must not do without. Cost of market research and business plan = N100,000
2. Purchase Land – Minimum of one plot will do for your business, except you are going for something much more bigger. But if it’s a small scale pure water production plant, you will be good with one plot of land. A plot of land in Lagos outskirts such as Ikorodu and Epe cost from N500,000 to N3M
Land may be cheaper in other states. You must go out there and ask for the prices of lands in the location you wish to setup your pure water production plant. Over all, budget N3M to N5M for land if you wants to situate your plant close to urban area. It is important to document your property. Hence, Price of land, Survey, C of O, and other documents = N5 million – N7 million
3. Construct Bungalow – To construct a bungalow that will serve as your factory together with fencing, finishing and furnishing, digging of borehole, and interlocking the compound. Depending on the size of the building, everything will take N5 million – N10 million.
4. Distillation System – Distillation is the single most effective method of water purification for pure water production and can be used on all types of incoming water. Unlike other treatment methods such as carbon filters and reverse osmosis, distillation systems are effective on virtually all contaminants and are not dependent on water pressure, water temperature, pH, or chlorine and can even be used on water containing bacteria and parasites and still produce safe, 99.9% pure water.
Distilled water is water that has been heated to the boiling point so that impurities are separated from the water, which itself becomes vapor or steam. Steam is then condensed back into pure liquid form. The impurities remain as residue and are removed.
Pure Water Distillation Systems remove waterborne biological contaminants such as bacteria, viruses, organic and inorganic chemicals, heavy metals, volatile gases, cysts and other contaminants. Distilled water contains virtually no solids, minerals or trace elements. It is clean, natural and healthy. Steam distilled water is the standard by which all other waters are measured.
Nevertheless, Reverse Osmosis is one of the most widely used and easier to install. Reverse Osmosis also produces water with highest level of purity and very perfect for your pure water production if you can afford it.
Most pure water makers in Nigeria use just ultra violet bulb for purification which is not that effective but cheaper. And below is what ultra violet bulb treatment system look like.
You may use simple distillation machine which cost within one million naira or install standard distillation system that could take up to ten million naira. The projected amount you should budget for distillation system = N1 million to N10 million
If you can’t afford any of those, then go for Ultra Violet Filtration. It is the most commonly used in Nigeria by small to medium scale pure water makers. It cost very little compare to the others, less than N100,000
5. Automatic Sealing Machine – Another important equipment which is the engine of your production line is Automatic sealing machine. You need just one but if you are planning for a very high volume production, you will need like two or three but on a normal production, one is very okay.
Koyo sachet water sealing machine type is very ideal. This machine is high precision packing machine and the one of most advanced liquid compound packaging machine available, which stands at the size of a double door refrigerator, three side sealing and intermittent. It can automatically complete Bag making, filling, sealing, printing, cutting and counting. Controlled by microprocessor and automatic photocell.
The price is between N400,000 – N650,000 and can take care of your entire production on daily basis. It works automatically and does it’s work efficiently.
6. Buy a Supply Truck – Your next big budget acquisition after the sealing machine is a supply truck. Do not be economical in your budget when it comes to supply truck. You know the condition of Nigerian roads and in most cases, you will be going deep into the developing areas to supply. There is nothing as bad as buying a truck that breaks down so frequent, it can kill your business.
A decent European used truck with good history is what you need. N3 million can get you a very good Mitsubishi Canter.
7. Staffing – This is one of the most sensitive aspect of your business. Human resources is the lifeblood that drives the whole mechanism of your production. Be careful in your selection. Below are the personals your company needs.
One Driver and one attending Loader
Two Security men
A Manager who may double as cashier unless you can afford the extra personnel.
8. NAFDAC Approval – Finally you have come to this level, your final step before production. How is this done?
Start by going to the NAFDAC office to obtain and fill the relevant forms. The process will take you as much as three months and up to six months before you get the certificate.
The best thing you need to do now is to Download the Application Requirement. Read it and start following the procedures as outline. You are not going to produce nor sell until your production is approved
I must tell you that NAFDAC Approval is the most difficult of it all and take much times. N30,000 is the processing fee for sachet pure water.
These are what your entire production line involves. At this point, I want to stop and let’s carry on the conversation through commenting. Drop your comments and let’s take it from there.