Initial Investment and Profit Margin
To start a pure water business in Nigeria, a start-up capital of about three million naira is needed. If you sell 500 ml, 1 liter, and 5 liter jars, the average profit will be 10-15%. Costs to consider include:
- Start-up inventory (supply of well-branded sachets, water purifying chemicals, and fueling, et al) – N150,000.
- License from the FDA and a permit from your state health department.
Facility and Equipment Costs
Constructing or leasing a 2500+ sq ft manufacturing facility is necessary to house equipment and operations for a small water bottling plant. This requires capital investment in the building, construction/renovation, and installation of required utilities and structures. Costs vary based on factors like bottle size, sourcing, and options, but this provides a realistic benchmark for investments to start a mineral water bottling plant. Keep in mind that equipment is only one portion of startup costs and other expenses can be equally significant.
Planning and Execution
Passion, hard work, and money are essential to start this business. Conduct market research to understand prospects, potential sales, branding approaches, and more. This research is vital at every stage. Steps to take include:
- Applying for an approved extraction permit from authorities for your water source, specifying volumes based on production needs.
- Installing bottle-filling equipment.
- Testing water samples at accredited labs for standards compliance.
Selling safe drinking water at low cost can be very profitable if sold in high volumes. Enhance your brand’s visibility by personalizing bottles and promoting through social media. With proper planning and execution, a pure water business can be rewarding in Nigeria.