Setting Up a Water Bottling Business
You can set up a small factory with Rs 15 lakhs investment or opt for a large factory with high production capacity in Rs 75 lakhs. The licenses needed are small scale industries registration, ISI certification from Bureau of Indian Standards (BIS), and approvals from health regulatory agencies. First, have a business plan to estimate costs. Then, register the business and obtain necessary licenses and approvals. Next, build the actual factory.
Starting a Bottled Water Business
For a bottled water business, startup costs range from $6,500 to $15,000, depending on minimum order quantities from your manufacturer since initial inventory is the bulk of costs. Profit margins vary from 10-15% for small bottles to 30-40% for 5-liter jars.
Promoting Bottled Water
The production itself involves purifying water, filling it into bottles, capping, labeling, and packaging for distribution and sales. Proper labeling must show water source, treatment method, and regulatory compliance. Promoting bottled water requires branding and advertising to reach health-conscious consumers since the market is booming. Starting from scratch or buying an existing plant or franchise are options. Costs for a new bottled water plant range from $750,000 to over $1.5 million.
Cost of Starting a Water Bottling Company
The cost of opening a water bottle business can vary based on several factors. However for a water bottle business you can expect to spend $12 to $27,209 with an average cost of $13,936. The minimum startup costs for a water bottle business: $12. The maximum startup costs for a water bottle business: $27,209. Startup costs for a bottled water business range from $6,500 to $15,000. Your costs will depend on the minimum your manufacturer will allow you to order, since the bulk of your startup costs are for your initial inventory.
Steps to Start a Small Water Bottling Business
Taking the steps to start your own bottled water business can be a satisfying experience that allows you to make money while also helping your customers achieve a healthy lifestyle. Plan your Bottled Water Business, Form your Bottled Water Business into a Legal Entity.
Starting a Mineral Water Plant
Starting a mineral water plant requires an investment of Rs. 15-20 lakhs for a small plant up to Rs. 75 lakhs and above for a large plant. The normal profit margin for bottled water is between 50 and 200%.
Profitability of the Bottled Water Business
The profit margin of the mineral water business depends a lot. If you sell 500 ml, 1 liter and 5 liter jars, the average profit will be 10-15%. However, if you sell 5 liter jars, the average profit will be 30-40%.
Market Size and Leading Companies
The global bottled water market size was valued at USD 217.66 billion in 2020. The leading bottled water companies are Aquafina, Dasani, Nestlé, and Danone.
Starting Your Bottled Water Business
Learning how to start a business from scratch is certainly difficult, This step-by-step guide will help you get started. Doing market research isn’t a one-off thing: From creating your water bottle concept to putting them on the market, market research is vital at every stage.
Bottled Water Production Process
The process involved in production companies in the bottled water industry comprises of purifying water and then filling it into plastic and glass bottles for consumption. These bottles are then properly capped and labeled accordingly before being sold to the customers. Proper labeling must have the necessary information for customers.
Creating a Business Plan
Once relevant discoveries are conducted from the market research, one must write a solid business plan in order to include a detail of how you intend to run your bottled water business. The business plan should include an executive summary, financial projections, marketing strategy, operational strategy, management team, legal details, and location analysis.
Conclusion
With dedication, hard work, and the right business strategy, you can start a successful and profitable bottled water business.