PACKAGED DRINKING WATER WITH PET BOTTLES
| Capacity
|
60000000 Nos. Bottles/Annum
|
Plant and Machinery cost
|
217.00
Lakhs
|
| Working Capital
|
0.00
|
Rate of Return (ROR)
|
45.00
%
|
| Break Even Point (BEP)
|
60.00
%
|
TCI
|
456.00
Lakhs
|
| Cost of Project
|
456.00Lakhs
|
Description:
Bottled Water means water intended for human consumption and which is sealed in bottles and other containers with no added ingredients except that it may occasionally contain safe anti-microbial agent. Now-a-days safe and pure drinking water is major necessity for human being. Bottled water industry, colloquially called, the mineral water industry, is a symbol of new life style emerging in India. While a large segment of the population is struggling to get access to potable water supply, a new generation - especially in the urban areas is getting accustomed to bottled water paying handsome prices. PET is the most extensively recycled plastic of the present time. Bottled water is available in differently sized packaging from 200 ml (popular on flights) to 500 ml (a huge hit among the youth) to 1 liter and 2 liter. Despite the large number of small producers, this industry is dominated by the big players – Parle, Bisleri, Coca-cola, Pepsico, Parle Agro, Mohan Meakins, SKN Breweries bottled water in the country when it introduced Bisleri in India 25 years ago. Apart from domestic and commercial use of packaged water, the Indian Railways is a huge potential market. According to officials at Cheerio, the railway ordered 10,000 cases (of 12 bottles each) a day. In coming years the demand of packaged drinking water will be increased very rapidly, so there is a huge scope for new entrepreneurs to venture into this project. The bottled water market is growing at a rapid rate of around 20% a year (down from 50 to 60%). At this growth rate, the Rs 7000 million per year market is estimated to overtake the soft drinks market soon. Multinationals, Coca-Cola, Pepsi, Nestle and others are trying to grab a significant share of the market. There are more than 180 brands in the unorganized sector. The small players account for nearly 19% of the total market. The government decided towards end of the year 2000 to bring about stringent guidelines for packaged water. All companies were made to sell their products only under the BIS (Bureau of Industrial Standards) certification mark. The BIS certification was made mandatory for the segment from April 1, 2001. The bottled water is to be classified as food and has been brought under the Prevention of Food Adulteration Act. They would have to adhere to rules pertaining to colour, odour, taste, turbidity, total dissolved solids and aerobic microbial count. There is a good scope and good market potential for new entrepreneurs to venture into this field. Few Indian Major Players are as under: Atco Corporation Ltd. Bikaji Marketing Ltd. Bio Green Inds. Ltd. Dharampal Satyapal Ltd. Golden Anchor Pvt. Ltd. Keventer Agro Ltd. Manchanda International Ltd. Mount Everest Mineral Water Ltd. N E P C Agro Foods Ltd. Nuway Organic Naturals India Ltd. Orient Beverages Ltd. Pondicherry Agro Service & Inds. Corpn. Ltd. Sparkle Foods Ltd. Sri Sarvaraya Sugars Ltd. Surat Beverages Ltd. Vijay Shanthi Builders Ltd.
|
Packaged Drinking Water with PET Bottles
| Capacity
|
|
Plant and Machinery cost
|
131.00
Lakhs
|
| Working Capital
|
0.00
|
Rate of Return (ROR)
|
40.00
%
|
| Break Even Point (BEP)
|
58.00
%
|
TCI
|
350.00
Lakhs
|
| Cost of Project
|
350.00Lakhs
|
Description:
Profile
Water forms an essential part of every human being. Since it is a human necessity it makes best sense to do business in. As a normal human being requires an average of 2 & 3 liters of water every day and world population is more than one billion (growing at 2 & 3% annually) the business opportunity is enormous and the potential is largely untapped. The water used for potable purposes should be free from undesirable impurities. As the name implies, the mineral water is the purified water fortified with requisite amounts of minerals such as Barium, Iron, Manganese, etc which can be absorbed by human body. It is either obtained from natural resources like spring and drilled wells or it is fortified artificially by blending and treating with mineral salts. The mineral water shall be manufactured and packed under hygienic conditions in properly washed and cleaned bottles in sterilized conditions.
Application
Packaged drinking water ensures safe, clean, potable water for human consumption. Mineral water is bottled under very hygienic conditions under strict quality control before being marketed. Its major use is in five star Hotels and Hospitals where good quality pure water is required for potable purposes. It is marketed at places and regions where hygienic drinking water is not freely available.
Market Scenario
The global bottled water sales have increased dramatically over the past several decades. The growing demand for bottled water speaks volumes of the scarcity of clean drinking water and the quality of tap water. It has become an icon of healthy lifestyle emerging in India. Selling safety i.e. pure and simple water has now become one of the fastest growing industries in India despite the harsh truth it is build on the foundation of bad governance, inequality and obvious exploitation. However, bottled water provides the 3 distance advantages of convenient packing, consistent quality and is ubiquitous. These are boom time for the Indian bottled water industry more so because the economics are sound. India is the tenth largest bottled water consumer in the world. The consumption of smaller units of 500 ml has increased by around 140% perceptibly.
Capacity :
108 Lakh Pouches (200 ml)/Annum
52.2 Lakh Bottles (500 ml)/Annum
26.1 Lakh Bottles (1 L)/Annum
26.1 Lakh Bottles (2 L)/Annum
14.4 Lakh Bottles (5 L)/Annum
5.1 Lakh Cans (25 L)/Annum
|
Packaged Drinking Water With PET Bottles
| Capacity
|
40000 Ltrs./Day
|
Plant and Machinery cost
|
59.00
Lakhs
|
| Working Capital
|
0.00
|
Rate of Return (ROR)
|
29.00
%
|
| Break Even Point (BEP)
|
63.00
%
|
TCI
|
171.00
Lakhs
|
| Cost of Project
|
171.00Lakhs
|
Description:
Water is the necessity of our daily life, it’s so important for us that we need clean, safe and sanitary water every day, and usually there’s a more strict inspection standard in the more advanced country.
Potable spring waters containing, sulphur iron, magnesium and other mineral salts occurring in certain regions are claimed to be beneficial to human metabolism. The therapitic value of such waters is questionable carbonated mineral waters also contain lithium salts.
There are two kinds of drinking water in the market. One is the natural water, which is called mineral water. The other is processed water coming from underground or from the pipe of water plant, which is called R.O. water, space water or pure water.
Uses and Application
Mineral water is bottled under very hygienic conditions under strict quality control before being marketed. Its major use is in five star Hotels and Hospitals where good quality pure water is required for potable purposes. It is marketed at places and regions where hygienic drinking water is not freely available.
Market Survey
The bottled water market is growing at a rapid rate of around 20% a year (down from 50 to 60%). At this growth rate, the market is estimated to overtake the soft drinks market soon. Multi nationals Coca Cola, Pepsi, Nestle and others are trying to grab a significant share of the market. There are more than 1800 brands in the unorganized sector. The small players account for nearly 19% of the total market.
Bottled water industry, colloquially called, the mineral water industry, is a symbol of a new lifestyle and health consciousness emerging in India. While a large segment of the population is struggling to get access to potable water supply, a new generation especially in the urban areas is getting accustomed to bottled water paying handsome prices.
The growth trends in packaged drinking water and a growing demand is indicative of the fact that water and its variants will be the single largest beverage category, growing and becoming at least 20 times of the current market size within the next 10 12 years.
There is a very good scope for this product and it is the right time for new entrepreneurs to venture into this field.
Few Indian Major Players are as Under :
Ajay Enterprises Ltd.
Akash Housing Ltd. [Merged]
Aradhana Snack Foods Co.
Bikaji Marketing Ltd.
Bisleri International Pvt. Ltd.
Durgapur Projects Ltd.
G E I Foods Ltd.
Golden Anchor Pvt. Ltd.
Jagatjit Industries Ltd.
Keventer Agro Ltd.
Mohan Meakin Ltd.
Mount Everest Mineral Water Ltd.
N E P C Agro Foods Ltd.
Nuway Organic Naturals India Ltd.
Orient Beverages Ltd.
Parle Bisleri Pvt. Ltd. [Merged]
Parle International Pvt. Ltd.
Pepsico India Holdings Pvt. Ltd.
Pondicherry Agro Service & Inds. Corpn. Ltd.
Rose Valley Inds. Ltd.
Sparkle Foods Ltd.
Sri Sarvaraya Sugars Ltd.
Surat Beverages Ltd.
Vaarad Ventures Ltd.
Vijay Shanthi Builders Ltd.
|