Packaged water business is very lucrative. That’s why there are many water business around now. But you can create a packaged water targeted at certain markets like party and events markets. If you create your water products for specific audience you will win
Water is one of the most vital elements of life. We drink it among a variety of other uses. Because a majority, about 65% of our body is made up of water. The brain is a vital organ in humans and is also made up of water.
Packaged water production involves the acquiring, purifying and packaging of this vital element called water. Moreover, it’s a very lucrative business as everyone drinks water five to ten times a day.
Since the advent of satchel water, 98% of Nigerians buy packaged water everyday. It’s one business that can target everybody and every market. Don’t you wonder how Eva, Nestle, Pax, RevUp waters are being sold all over the country?
The demand for water is high and not many brands understand how to tap into the huge packaged water business. However, in this article I will be showing how to start packaged water now more profitable than existing competitors.
✅ Is Packaged Water Business Profitable?
Packaged water production business is profitable like many businesses. Meanwhile, it has some challenges like many other businesses. But these challenges are not so huge but if not taken care of, they can cost the life of the business.
There is good demand for sachet and bottled water because they are affordable means to get pure water. And since more people are getting concerned about their health, they would seek out pure water to drink.
Because water is in continuous demand, competition would not put you out of business, as long as you have your target.
Also, you need a business plan before starting this business and you need education. You would need to recruit people for help. An installer for example would install your equipment for you. Get a good one. They would also advise on what other machine you need.
You need to know how to run the equipment by yourself when the installer leaves so stay with them through the process and ask questions.
✅ How Packaged Water Business Works
Water can be packaged in sachets and bottles. The production processes are similar and only differ in the packaging.
- How to start a packaged water production company in Nigeria
Learn the business
- Know the authorities over packaged water production, regulations, how the business works and how to handle the business and all that you need to know.
- Know what you should know. This is a key step if you want to start this business.
Get a Building
You can get a building on lease or build your building. It all depends on your budget. The price varies with location. It would be more expensive than in some areas than some other areas. It should have a fence to keep out unnecessary traffic within the company.
Do not rush while picking your business name. The idea of a business name might not come easily. Coupled with the fact that there is a great number of businesses already registered in Nigeria.
After getting a unique name, register your business with the CAC – Corporate Affairs Commission. Business registration does not only make your business secured but also allows you to lawfully own and run your business.
Tax number and NAFDAC registration
You can get your tax identification number from a revenue office so you can hand out your tax when it is due. There is no way around this if you want to be a law-abiding citizen of Nigeria. It may lead to avoidable issues with the government if your business does not have one.
Like every other food item consumed, packaged water must be inspected and approved by NAFDAC. It is important and failure to do this may lead to a company being closed down by the government. Get your company registered under NAFDAC.
✅ Constructing a Water Borehole
A borehole provides you with clean water throughout the year, even during the dry season and at any time you need it. The price of drilling a borehole largely depends on the soil’s quality and the location.
Have an Overhead Tank
To store water, you need an overhead tank. Plastic storage is better than a metal one because a metal tank rusts over time, cutting its life short.
Water Purification System
Even if the water looks clean, it must still be treated. The rules guarding packaged water production and distribution are against selling out untreated water.
There are 2 kinds of water purification systems:
- Ultraviolet build system
- Reverse osmosis distillation system
The reverse osmosis distillation system is said to be the most effective but is also the most expensive. The Ultraviolet build system also works efficiently and is not as expensive.
Automatic Sealing Machine
The sealing machine you get would increase your rate of production. This is why an automatic one is more recommended than a manual one.
The type and capacity of the automatic sealing machine you get would influence the number of seals that can be done and your overall production. Some can produce as much as 20,000 seals every 8 hours.
Source of Stable Electricity
As light is unstable in many parts of Nigeria, it is wise to have a generator that can power all your machines so that your working time is not hindered. This means that fuel has to be made available to power the generator.
Packaging and Distribution
The way your product is packaged is the first thing consumers would notice and also, the durability of the package. But the package can either be polythene sachets as in sachet water or bottles as in bottled water.
However, the package should show the name of the business boldly with the words well spelt. The packaging should keep the products together and withstand the movements it would face during the distribution process.
Remember, your brand matters a lot, it answers whether or not people would trust you with their health and life.
Quality Checks and Balances
Retain the quality of your water. There should be a system put in place to check that the quality of water does not reduce. This would not only jeopardize your brand but also make you lose the trust of consumers.
Retaining the water’s quality would keep your customers with you, causing your gain to increase, not decrease.
Get feedback from distributors and consumers to find out if there’s something you’re not doing right or if there’s a decline in quality.
Regular Maintenance of Machines
The machines used should be given due maintenance to keep them working at a top-notch rate so that your production is not affected.
Construct Security Fencing
Like I earlier mentioned, the factory building should be sealed by a fence. Also, security guards should be made available to keep the building and equipment safe, preventing loss.
✅ Packaged Water Production Business Plan
A packaged water production business plan is necessary to get you started on all that your business should be about. And it is useful if you want to apply for grants or loans from banks.
However, it should include the following headings: an executive summary, a business description, definition of the market, product description, organization structure, financial management and conclusion.
✅ Packaged Water Regulation
Packaged water production is regulated by NAFDAC in Nigeria. They assess the water you produce and the equipment you use to check if it is safe to be consumed by living, breathing human beings. And animals too.
A NAFDAC number on your products certifies you and gives you the trust of your consumers.
Starting Costs on Small Scale
The following are estimated prices that make up the starting cost:
- Automatic sealing machine – N350,000 – N450,000
- Drilling the borehole – N300,000 – N400,000 (depends on your location and the soil type)
- Truck for distribution – N1,000,000 – N 2,000,000
- Distilling machine – N5,000,000 – N7,000,000
- Generator – the cost depends on the size and model.
- Business registration – varies depending on the kind of business registration.
- Factory building – depends on the location.
Note: Cost is subject to verification, as it might change with time. However, its better to package a proper business plan or hire a consultant to do that for you.
✅ Packaged Water Production Process
Water, which is the main raw material involved in packaged water production, goes through the purification processes to ensure that it is clean and pure following NAFDAC approved standards. Afterwards, it passes through the various machines which fill it into bottles or sachets, is sealed and then packaged.
✅ Plan Your Marketing Process
Study the market. Check for how things are done, the prices, the time other pure water factories go around with their packets of water and use it to your advantage. For example, do they sell at N99? Remove N1 from it and sell yours at N98. It may not look like much but when bought in bulk, the difference would show.
Also, take your packets of water around earlier than others. Some water factories drop their products as early as 4 am. Think of different packaging to brand your water and attract certain target markets.
Like a new driver joins a busy road for the first time, so also do. But do not let fear prevent you from infiltrating the market. Rather do it despite any fear.
Finally, water is life that’s why it sells faster. If you are looking for daily income business, packaged water business is one of them. Meanwhile you can start wisely by producing special packaged water water for hotels, restaurants and events to grow your business from small scale, before targeting a larger consumer market.
Also, if you would like to start your packaged water production company, start by asking relevant questions? Let’s read your chat in the comments.