Inmoisture Project Report (PDWP)
Inmoisture Project Report (PDWP)
Inmoisture Project Report (PDWP)
[BOTTLED WATER]
CONTENTS Page
No.
PROJECT REPORT 1-29
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Packaged Drinking Water Project Report
Address of the
Project/Proposed
Location
Own/ Under
Lease Rent
Agreement
2. PROMOTER’S BACKGROUND :
Name of the
Promoter
Age
Communication
Address
Educational
Qualification
Work Experience
Special Training
Attended, If Any
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Packaged Drinking Water Project Report
3. PROJECT INTRODUCTION :
Rampant water, land and air pollution has taken its negative toll on the earth.
Dumping untreated waste directly into the waterways has reduced the quality of
water. It is definitely unsafe to consume water from lakes and ponds. Untreated
water is not safe for consumption. It contains germs, dust and pollutants which plays
havoc to our health. Thus, it is mandatory to drink treated and filtered water,
obtained from clean source. It is this awareness among the growing population about
the importance of safe drinking water for maintaining good health, along with a sharp
rise in per capita income is creating a demand for bottled water in India. Bottled
water is extremely convenient to carry especially for employees, traveller, and
students. It keeps them hydrated irrespective of their proximity to the water
supply. With the consumption of water increases due to the growing population, it is
quite imperative that the world would require a greater number of water purification
units. This is where the bottled water business players are benefitting from. Soda
water, also known as club soda is water containing carbon dioxide, which bubbles
out and makes the drinks tasty and peculiar. Soda water is prepared by adding high
pressure carbon-dioxide to a solution of pure water. There are around 5,735 licensed
bottlers for packaged drinking water across India, alongside uncountable unbranded
ones. However, penetration of packaged drinking water is low in rural India. Bottled
water business comprises purifying the water, bottling them for consumption and
selling them. This is evergreen business and there is place for everyone who wants
to step into this opportunity. Opening a Packaged Drinking Water plant requires quite
a substantial investment and cannot be started with low investment. If one does not
have sufficient funds and resources, then it is better to opt for dealerships or
franchise.
In India, the demand for bottled water is majorly due to unavailability of safe drinking
water because of enormous increase in the population, inflow of foreign students and
tourists, poor quality of tap water and ease of availability of bottled water and rise of
health awareness. As the government has failed to provide clean drinking water at all
places, private players have not just filled the gap but also created a robust
business. The best mineral water companies in India are focussing on augmenting
their market shares by implementing effective marketing strategies and attractive
packaging. The market is expected to reach US$ 60.06 billion by the end of 2023.
The major strength of India as a market is of course its population which is 17.6% of
the global population. The market for the supply of Packaged Drinking Water is wide.
In all the cities and towns of India, the product is widely accepted in offices,
restaurants, railway stations, bus stands and hospitals. Bottled water is also
available in all “A”, “B” and “C” class Retail outlets, Bakeries and Sweet shops,
Pharmacies, Petrol Pumps and through Street Hawkers. Many households have
resorted to purchasing purified water in Jars.
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Packaged Drinking Water Project Report
The growing population, increasing urbanization and rising consumerism has fuelled
the demand for FMCG products in the market. Based on distribution channel, the
Consumer market is segmented into Super Markets, Departmental Stores, General
Retail stores and others. Increasing internet penetration is also leading consumers to
buy FMCG Products through online channels thus contributing to the growth in the
Consumer market. The target market for the proposed set-up is retail stores in all the
densely populated cities and all tier II/III cities / towns across the country.
Dealing with the Distributor and Super Stockist.
Going on live with the Social Marketing.
Marketing plan of the proposed project would include the following measures;
Marketing objective would be to enter into long term contracts with the
retailers and traders to achieve that optimum level of capacity utilization at an
early date.
Once a few long-term contracts are established and a presence is built in the
market such that the market perceives the benefits being offered by the
service, then the incremental effort required to secure new clients would be
minimal. In addition to direct marketing to the potential clients, the business
would be advertising in trade journals and similar publications communicating
the benefits of the service and educating the customers.
Successful and sustainable operation of this MSME business unit would depend on
the following main critical factors:
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Packaged Drinking Water Project Report
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Packaged Drinking Water Project Report
The final stage is bottling. Several types of apparatus are available for the
purpose, the bigger ones can deal with a dozen bottles at a time, the smaller
ones with one at a time. The bottle is nearly filled up with sodi-bicarb solution
and inserted into the machine. Small rubber rings and glass balls are used to
stop the mouth of the bottles. More carbon dioxide at high pressure is pumped
into the bottle, then the flow of the gas is suddenly stopped and the glass ball
flies into the rubber ring and is firmly fixed there. Now-a-days crown corks are
preferred over glass balls.
The plant will automatically stop when product water tank is full (high
level).
The plant will automatically restart when the product water tank level
reaches a certain limit (low level).
The plant will be provided with an audio-visual alarm when the quality
of water reduces below the stipulated limit.
The plant will trip up on supply of high voltage
pH 6.5 to 8.5
Total dissolved solids <500ppm
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Packaged Drinking Water Project Report
In assessing the proposed operational capacity, due consideration has been given to
technological and financial factors, marketing considerations, availability of
consumables, infrastructure facilities and economic viability. The detailed
requirement of the machinery and equipment‟s to achieve the operational capacity
has been assessed through technical feasibility aspect. While arriving at the
requirement of various type of machinery and equipment‟s required for the unit, due
considerations has been given to the following points.
a) Minimum Wastage.
b) High Efficiency.
c) Maximum flexibility in operation.
d) Adequate stock by provision wherever necessary.
The operational capacity of the business unit per annum at 100% capacity utilisation
is as follows;
Product Percentage
500 ml Bottle PDW 20%
1 Litre Bottle PDW 60%
2 Litres Bottle PDW 10%
20 Litres Jar PDW 5%
300 ml Bottle PDW 5%
For the purpose of carrying out this economic viability of the proposed project, it is
assumed that the Unit will operate at following efficiencies (Capacity Utilisation)
during the first 5 (Five) Years.
Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Capacity 50% 60% 70% 70% 70%
Utilization
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Packaged Drinking Water Project Report
Regeneration Chemicals
Water
Membrane
Activated Carbon
Sand
Cartridges
Pre-form/LDPE for Bottling
Labels
Dispenser Caps
Secondary Packing Cartons & Straps
Other Consumables etc.
Among the mentioned Raw Material and Consumables, all are easily available
locally but it is advisable to have some firm supply arrangements beforehand to
ensure timely supply. Secondary Packaging Materials will be required for packing of
finished goods.
12.1. POWER: The total connected load requirement of power is 150 HP for
the Project.
12.2. UTILITY: Utilities include Fuel etc. those should be available locally.
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Packaged Drinking Water Project Report
The period of implementation of the Business will depend on the time taken for the
sanction of financial assistance if applicable and the subsequent period of delivery of
the Machine and Raw-material Inventory from the respective suppliers. The delivery
period of the same would be 30 days to 90 days from the date of placement of firm
order. Some of the project activities shall be carried out concurrently. Based on the
above assumptions, the major activities under the tentative implementation schedule
are as follows:
Sl. Activities/Time 1
st
2
nd
3
rd
4
th
5
th
6
th
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Packaged Drinking Water Project Report
While deriving figures and projections in this Project Report, following Basis and
Presumptions have been made.
14.1. The project is based on a single shift basis and 300 days of working schedule
in a year, working for 10 hours a day, 25 days a month.
14.2. The project cost and other projections etc. have been made on present
market conditions and the sources available within our sources only and
therefore it may vary on account of market fluctuations and with different
suppliers and qualities.
14.5. Contingencies and Escalation has been considered on Civil Work, Plant &
Machineries and Fixed Assets to provide safeguard against escalation of
prices or any other unforeseen expenditure.
14.6. Power rate is assumed at Rs.6.70 per unit and monthly fixed rental
charges. Water would be available
14.7. Manpower requirement for the project has been planned considering the size
of the unit. The Salaries/Wages are taken as per prevailing rates in this type
of industry.
14.8. Interest rate is considered 15.00% on Term loan and 16% on Working capital
loan for financial assistance. For repayment, a period of 5 years is planned.
14.14. At the plant site, availability of unskilled labour is not a problem. Skilled and
unskilled labour can be recruited for operating the plant. Initial training will be
required for smooth and efficient running of the plant. It is felt that the skilled
manpower available locally having some experience in operation can be
recruited to satisfy the manpower need.
14.15. Project would be set up at a site that is well connected by road and there will
be uninterrupted supply of power and adequate availability of water without
any difficulty at the project site.
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Packaged Drinking Water Project Report
Particulars Area
Rate (Rs.) Amount (Rs.)
(Sq. Ft)
Site Development, Approach Road, Nil
-- --
Boundary etc. (Own Space/ On Lease)
Say (Rs. in Lacs) 0.00
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Packaged Drinking Water Project Report
Contingencies and Escalation has been assumed @ 2% of the Building & Civil
Works, Plant & Machinery and Miscellaneous Fixed Assets expenses.
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Packaged Drinking Water Project Report
Total expenses on Raw materials and Consumables at 100% capacity utilization are
estimated as below;
15.2.2. MANPOWER
Total expenses on Manpower Salary in the 1st year are estimated as given below. It
is assumed that salary expenses will increase @ 10.0% every subsequent year;
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Packaged Drinking Water Project Report
B) Light/Fan/Pump/Motor = 11 KW
Total = 27,575 KW
With Power Factor .90
Conversion into Units 24,818.00 KW
Cost of Power Rs. 6.7 Per Unit
= Rs. 1,66,281.00
Fixed Rate @ Rs. 275 Per KW Per Month
Rs. 275 X 110.3 KW X 1 MonthRs. = Rs. 30,333.00
Year 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
Capacity 50% 60% 70% 70% 70%
Utilisation
Total
Annual
Power 11,79,684.0 14,15,620.0 16,51,557.0 16,51,557.0 16,51,557.0
Cost 0 0 0 0 0
(Rs.)
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Packaged Drinking Water Project Report
A total expense on Repair and Maintenance in the First year is estimated as given
below. It is assumed that expenses on Repair & Maintenance will increase @ 2%
every subsequent year.
Year 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
Capacity 50% 60% 70% 70% 70%
Utilisation
Total Annual
Repair & 300,000.00 3,78,000.00 4,41,000.00 4,41,000.00 4,41,000.00
Maintenance
Cost (Rs.)
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Packaged Drinking Water Project Report
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
and Stock
Period 50% 60% 70% 70% 70%
(1 Month)
(1 Month)
Finished 2,36,960.00 2,74,969.00 3,13,005.00 3,14,090.00 3,15,196.00
Goods
(5 Days)
Receivables 1,78,240.00 1,50,187.00 1,21,969.00 1,15,462.00 1,08,826.00
(-LS-)
Total 64,18,537.00 76,29,161.00 88,39,645.00 88,39,645.00 88,39,645.00
Working
Capital
Required
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Packaged Drinking Water Project Report
DEBT
Loan from Banks/ FIs
75% 216.37
EQUITY
Own Capital including Margin Money
Subsidy from Central/ State Govt. 25% 72.13
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Packaged Drinking Water Project Report
Average Ex-Factory
Bottle Sizes Price Per Unit (Rs.)
500 ML Bottles 5.00
1 Litre Bottles 8.00
2 Litre Bottles 14.00
20 Litre Jars (Refundable Jars) 20.00
300 ML Bottles 4.00
Year 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
Capacity 50% 60% 70% 70% 70%
Utilisation
Total
Annual 3,30,48,000.00 3,96,57,600.00 4,62,48,300.00 4,62,48,300.00 4,62,48,300.00
Income
(Rs.)
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Packaged Drinking Water Project Report
Year 01 02 03 04 05
1. Capacity 50% 60% 70% 70% 70%
Utilisation
2. Earnings 21,600.00 25,920.00 30,240.00 30,240.00 30,240.00
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Packaged Drinking Water Project Report
9. 720.65 720.65 720.65 720.65 720.65
Depreciation
10. Profit 3,545.76 5,072.70 6,831.35 6,893.18 6,953.67
Before Tax
11. Taxes 1,069.20 1,283.04 1,496.89 1,496.89 1,496.89
Year 01 02 03 04 05
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Packaged Drinking Water Project Report
Depreciation has been calculated by straight line method. The details of calculation
are given below.
1. Building 5% 86.87
720.65
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Packaged Drinking Water Project Report
Duration of Term Loan repayment has been considered for a period of 7 Years after
rmoratorium period of 6 Months with equal monthly instalments. The details of
calculation are given below.
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Packaged Drinking Water Project Report
Particulars 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
A. Cash Accruals
B. Debt-Service Requirements
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Packaged Drinking Water Project Report
------------------------------------------------------------
15,746.92
Contribution : Rs. 5,637.08
Semi-Variable Cost and Fixed Cost:
a) Interest & Govt. Charge : 1,008.00
b) Depreciation : 720.65
c) Repairs & Maintenance : 148.78
d) Administrative Expenses : 384.00
(40%)
3,128.07
3,128.07 X 50
BEP=
-------------------------------------------------------------------
5,637.08
= 27.75%
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Packaged Drinking Water Project Report
= 24.77%
B) On Total Earnings
= 11.58%
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Packaged Drinking Water Project Report
Sl. Description 00 Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
No. Construction
Period
A. Sources of Fund
1. Profit Before 5,836.80 7,744.35 9,650.61 9,582.44 9,512.93
Interest & Tax
2. Depreciation 720.65 720.65 720.65 720.65 720.65
Add Back
3. Increase in 2,200.00 -- -- -- -- --
Equity
4. Increase in 6,600.00 -- -- -- -- --
Term Loan
5. Increase in --- -- 1,400.00 200.00 -- --
Cash Credit
6. Increase in --- 1,200.00 -- -- -- --
Security from
Distributors
7. Pre. Ex. W/O --- 32.49 32.49 32.49 32.49 32.49
Total 8,800.00 7,789.94 9,897.49 10,603.75 10,335.58 10,266.07
B. Disposition of Fund
1. Preliminary & 324.89
Pre-operative
Expenses
2. Capital 8,075.11
Expenditure
3. Increase in 400.00 1,200.00 200.00 200.00 -- --
Current Assets
4. Repayment of -- 500.00 1,000.00 1,000.00 1,000.00 1,000.00
Term Loan
5. Interest & Govt. -- 1,008.00 1,132.00 1,023.00 893.00 763.00
Charge Paid
6. Taxes -- 1,069.20 1,283.04 1,496.89 1,496.89 1,496.89
7. Royalty -- 1,283.04 1,539.65 1,796.26 1,796.26 1,796.26
Total 8,800.00 5,060.24 5,154.69 5,516.15 5,186.15 5,056.15
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Packaged Drinking Water Project Report
Sl. Description 00 Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
No.
Construction
Period
Liabilities
1. Equity 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
2. Reserve & -- 2,476.56 6,266.22 11,600.68 16,996.97 22,453.75
Surplus
3. Term Loan 6,600.00 6,100.00 5,100.00 4,100.00 3,100.00 2,100.00
4. Cash Credit -- -- 1,400.00 1,600.00 1,600.00 1,600.00
5. Security -- 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
from
Distributors
Total 8,800.00 11,976.56 16,166.22 20,700.68 25,096.97 29,553.75
Assets
1. Net Fixed 8075.11 7,354.46 6,633.81 5,913.16 5,192.51 4,471.86
Assets
2. Pre- 324.89 292.40 259.91 227.42 194.93 162.44
operative
Expenses
3. Current 400.00 1,600.00 1,800.00 2,000.00 2,000.00 2,000.00
Assets
4. Cash & -- 2,729.70 7,472.50 12,560.10 17,709.53 22,919.45
Bank
Total 8,800.00 11,976.56 16,166.22 20,700.68 25,096.97 29,553.75
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Packaged Drinking Water Project Report
00 Year 8,075.11
1st Year 1,600.00 3,197.21 1,597.21
2nd 1,800.00 4,510.31 2,710.31
Year
3rd Year 2,000.00 6,055.11 4,055.11
4th Year 2,000.00 6,116.94 4,116.94
5th Year 2,000.00 6,177.43 4,177.43
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Packaged Drinking Water Project Report
ANNEXURE- I
While starting a business, one needs to obtain several permissions and licenses
from different authorities. The various statutory permits/clearances and business
licenses required for compliance is mentioned below: –
Apply for the Trade License from the Municipal Authority/ Local Authority.
Documents required for obtaining trade license;
Pan Card.
A bank statement of the establishment of the trade.
Certificate of establishment.
Premises proof in the form of either electricity bill, water bill or sale
deed.
Colour photograph, ID proof and Address Proof of the
owner/partners.
Front facing photograph of the trading business with goods that are
traded in proper display.
Obtain the GST Registration. Every business is required to pay tax and
register itself under GST, as it deals with the sale of goods. On registration,
the project will get a GSTIN, a 15 digit code which is a unique GST
identification number.
Procedure: The procedure for application is online and varies a little depending
on the type of application and also includes an online payment to be made as
registration charge, thus generating a Challan and the registration is generated
post verification by the concerned authorities. FSSAI application or a registration
is carried out by the submission of the necessary documents to the designated
authorities and includes the submission of Form A and B.
Medical Certificate for Workers - The owner of the firm must obtain health
reports of each employee. The owner needs to ensure that the workers are
not suffering from any communicable disease. Otherwise, the health
department will not give the license.
Apply for the „Consent to Establish‟ and “Consent to Operate” from the
Pollution Control Board.
Fire Safety Permit/NOC from the State Fire Department – There will be
some types of equipments which can easily catch fire easily, therefore Fire
and safety license is also a must for while initiating any business . This Fire
Safety Certificate can be obtained from the Fire department.
Trade Mark Registration –As the market for business grows further, the
competition will also grow. Obtaining a trademark registration will not only
help the business to create its unique identity in the market but will also aid in
the protection of its brand. The owner of the business must file an application
for registration of the name, style or logo as its intellectual property with which
its brand could be identified and which could not be used by any other brand.
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Packaged Drinking Water Project Report
ANNEXURE-II
IMPORTANT STEPS TO
START MSME BUSINESS UNIT
Let us discuss about some of the important steps in setting up of the business.
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Packaged Drinking Water Project Report
8. Target Market : Market size matters a lot. You can‟t plan a strategy or make an
investment without understanding key facts about the target market. Do your
research and start by looking for options to sell your product at. Get your hands on
the available documents you can get that can help you in the business. Carefully
do this process, a type of market option you choose can determine how you would
gain.
10. Quality Check and Control : Unwanted adulteration can creep in at various
stages of business and can lower the quality of the end product. Hence, a periodic
quality check is indispensable to any business setup. All the precautionary
measures should be practiced to ensure good quality control.
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Packaged Drinking Water Project Report
ANNEXURE- III
For any project planning process first step is the identification of Project Site on
which the physical facilities are to be built up. Selection of site for any project has
great impact on the utilization of facilities, layouts and design. While selecting the
site, care should be taken to select a site at an elevation free from inundation and
well connected by road and other communication facilities to both production and
consumption centres.
Therefore, while selecting a location for the business, the following factors should be
duly considered;
7. Equipment‟s Security.
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Packaged Drinking Water Project Report
ANNEXURE- IV
Smart tips to follow while starting/running a Packaged Drinking Water business are
as follows;
2. Malls, Fairs, Events – As the footfall in big malls, movie auditoriums, fair and
events us high, setting up stalls in these places will ensure high sale.
3. Restaurants and Café – There is no way to ensure that the quality of water,
served at the cafes and restaurants is good. So, most people go for mineral
bottled water. A deal with café and restaurant owners will also prove to be
beneficial.
4. Beverage and Grocery stores – Make sure that your water is available in all
beverage and grocery stores. This will increase exposure and saleability of
the product.
5. Sell at domestic level – Many health conscious people try to cook food in
mineral water. They opt for 20 liter water jars. Thus, selling these purified
water jars at domestic level will boost your sale.
3. Making use of Social Media – Social networks are potent platforms for
getting in touch with the target clients. Maintaining a separate account for the
brand will keep people posted about the upcoming events and launches. It
also increases exposure that is a must for promotion and business.
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Packaged Drinking Water Project Report
4. Adequate Quality Control – Another risk, closely associated with the mineral
water business is inability to maintain high quality of water. It is the
responsibility of the R&D department to carry out batch tests to make sure
that purification and addition of preservatives have been done accurately.
D. Waste Management :
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PROJECT REPORT/ BUSINESS PLAN
This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to
Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation
and Finally Printing the Report) to be presented as a Ready Project Proposal immediately under any
Central/State Govt. Self-Employment Schemes as well as Business Loan Schemes under SC-STs/PSU Banks/
NBFCs/ MFIs/Private Banks thereby saving precious time of the promoter in the process of completing requisite
formalities in anticipation of setting up the business project.
The Report so presented assumes an ideal scenario of an economy sized unit but flexible provisions are there for
editing, customising calculations, modifying estimations as per personal preferences. Accordingly, following
Project Templates has been deliberately left blank in order to facilitate customisation by the perspective
entrepreneurs based on personal requirements and furnish necessary information on actual basis.
This Project Report/ Business Plan covers all the important aspects of the Project containing Highlights of the
Project, Introduction, Market Analysis, Production Aspects, Technical Aspects and Financial Aspects. The
Financial Aspects contains Capital Investment Estimates with detail Project Economics, Computation of Working
Capital Requirement, Estimated Cost of the Project, Proposed Means of Project Financing, Estimated Annual
Sales Turnover, Projected Profitability Statement, Calculation of Interest Amount, Depreciation Schedule, Term
Loan Repayment Schedule, Debt Service Coverage Ratio, Break-Even Analysis, Projected Cash Flow
Statement, Projected Balance Sheet, Internal Rate Return and Pay Back Period. The presentation also
supplements with important facts and useful information (In Annexures) covering the areas namely Statutory
Permits and Business Licenses Required for the Project, Important Steps to Start a MSME Business Unit,
Tips to Identify Suitable Project Location and Smart Tips to Follow in Packaged Drinking Water Business.
Hereby, the Report contains detail requisite information to quickly start with the various time consuming
government formalities connected with planning and commercial operation of the proposed business project.
Following are some of the indicative areas where the Ready Reports may be utilised as a Project Document;
This would help in identifying in advance the infrastructure/resources required for the Project and approach the
concerned government agencies accordingly. Hence, it becomes a complete document for further action towards
realising the dream of becoming an entrepreneur.