*The article is over 8 years old. May contain outdated data
Calculator for calculating the profitability of this business
Ready ideas for your business
Business in the field of public utility services has many pitfalls that a beginner needs to know about. The director of the Domovoy company, Yaroslav Butenko, shared his experience of creating a business.
The popularity of pizza has a “side”: there are a large number of pizzerias in every city. But there are practically no outlets selling Kono-pizza. You can eat this pizza on the go.
This financial calculation reveals some guidelines for opening a quail farm on your own premises with a productivity of 400 kg. quails per month (about 2000 heads, with a carcass weight of 200 grams).
Growing all these plants is quite a profitable endeavor. The flower growing business is very highly profitable, and sometimes it amounts to several hundred percent, but only if the level...
A business growing greens for sale does not require a large start-up capital. The demand for such products is stable, and the profitability of such a business is over 65%. The key problem is the organ...
Now there is not a single company on the market that would purchase used mobile phones and would not repair them.
It is well known that drinking water is a food product and is properly purified and filtered water from artesian wells. The packaging for it can be either plastic or glass containers.
Today in Russia the opportunities for starting your own, real income-generating business related to the production and sale of drinking water are truly colossal. Due to the fact that the quality of tap water has long left much to be desired, and population incomes are growing year by year, the market for artesian water consumption has a clear tendency to expand by 15-17% annually.
Necessary equipment
In order to determine the types of equipment for bottling water, it is necessary to determine its chemical composition in the well itself, as well as determine the expected production volumes. However, most often, in order to bottle drinking bottled water, the following equipment is needed:
- For injection and cleaning (water aeration and reagent dosing system) - from 100,000 rubles;
- For bottling water into containers (the price of bottling equipment is from 100,000 rubles. The cost of automatic lines starts from 600,000 rubles);
- For blowing (manufacturing) bottles - from 400,000 rubles. It is quite possible to do without this type of equipment, but it can significantly increase the profitability of water production, but not always in the case of bottles (read below).
Bottled water production
When producing bottled water, the whole process is the same, except for one thing - here the bottles are reused, so this additionally requires a machine to wash them. The process looks like this:
Such bottles are not always produced by water manufacturers. The fact is that this requires considerable additional financial resources for equipment and raw materials. As a matter of fact, that’s why the bottles cost about 500 rubles apiece. In addition, if you constantly serve approximately the same number of enterprises, and they, in turn, constantly order approximately the same amount of bottled water, then your production equipment will very often be idle.
Technology
The actual production scheme for this water is carried out in several stages:
- They are drilling artesian wells;
- Water is purified by passing it through special carbon or sand filters;
- The content of certain minerals is adjusted;
- Water is treated using ultraviolet rays in order to disinfect it;
- The water is ozonized;
- Prepare containers for bottling;
- Bottling.
The quality of the water obtained in the above way must be in accordance with the requirements of SanPiN 2.1.4.1116-02 and GOST R52109-2003.
An enterprise specializing in the production of drinking water has special requirements. Firstly, it should include such areas as:
- Mining area;
- Cleaning area;
- Bottling area;
- Premises for sanitary and domestic purposes for employees of this enterprise;
- Warehouse for storing products.
Secondly, the workshop premises themselves must comply with SanPin for food production, as well as meet fire safety requirements for industrial enterprises.
Payback period
It's no secret that the sale of drinking water is characterized by a certain seasonality. Thus, in the warmest time of the year from May to August inclusive, consumption volumes undergo a period of noticeable growth and, as a result, it is at this time that water production brings the greatest income.
Buyers of these products include both legal entities and individuals. It is worth considering that among customers the lion's share is still made up of legal entities and they make up 90% of all consumers, and, unlike individuals, these customers pay for goods by bank transfer, i.e. transferring the required amount to the seller's account. Individuals most often pay in cash after delivery of products.
Through simple economic calculations, it is easy to come to the conclusion that the production of bottled water can bring its owner good income, since its gross profitability can be about 700%. In this case, the main costs for water production will be the so-called total costs; in general, the costs should include the costs of chemical treatment, the costs of container production and the energy consumption of this production.
The payback period for investments in a water production business is directly dependent on the available markets for its sales, the methods of water purification used, as well as the parameters of the equipment. However, it is known that on average they can be 2-2.5 years.
The post has been changed:
It's no secret that the quality of ordinary tap water, especially in big cities, leaves much to be desired. Let’s leave the reasons for this “disgrace” on the conscience of housing and communal services and other responsible organizations, and think: is it possible to make some profit from this? Of course you can! And the profit from the sale of clean water in cities is quite good money. And by the way, from year to year the quality of tap water does not improve at all, but rather the opposite. Therefore, the market for the sale of clean water can only expand.
The production of bottled water in containers of various sizes is not a new idea, but it remains a very promising one. By the way, do you want to know how things are with this business in the same States? There, water from springs is not sold in five-liter “cylinders” or one and a half liter bottles. In the States, it is bottled in small bottles of two or three hundred grams, and costs from $2.50 per container. However, the price of ordinary drinking water is approximately a dollar per liter.
Why do people buy bottled water?
These people are strange creatures after all! They heavily poison themselves with nicotine and alcohol, lead a sedentary lifestyle, engage in sedentary work, do not always eat healthy food, do not control many other things, and at the same time, care about the quality of drinking water. Try this portrait on yourself, and you will understand that this is the “naked” truth.
One way or another, the demand for clean water was, is, and will always be. Profits from bottled water cannot be called huge, or even simply large, but they are stable. The payback period for this business is approximately 2-3 years. Everything, of course, depends on the scale of production and positioning of your product on the market. What do you think is the most significant difference between ordinary drinking water in five- or ten-liter bottles, say, Lipetskaya, and a one and a half liter bottle of Aqua Minerale? Correct answer: in the volume of the container and the label. Well, in price, of course.
You are unlikely to find real “Aqua” on the shelves of ordinary Russian supermarkets. But people are still “led” by the brand, and continue to buy “environmentally friendly” products, including water, with enviable persistence.
Bottled water production resource
Do you know what is needed to produce bottled water? That's right - water! This means that the production business must also include the technology for its extraction. In principle, you can take regular tap water, or even water from a puddle, and purify it using standard purification methods so that it is drinkable. But this will be so-called “dead” water. Have you ever tried distilled water? The same.
But the “living” product is water extracted from special wells, artesian (underground) wells. In general, such a well can theoretically be drilled anywhere. However, some nuances get in the way. Firstly, the well must be deep enough so that melt water does not get into it. Secondly, the well itself, the space around it: soil, earth layers, are carefully examined by specialists from the sanitary-epidemiological service. Just like the production premises themselves, they are checked for noise levels (!) and vibration (!), hygienic conditions, availability of ventilation, and compliance with many other conditions. The finished product must comply with SanPin and GOST standards. By the way, information about artesian water deposits on the territory of the Russian Federation can be obtained from a special Groundwater Cadastre.
It is because of all these “difficulties” that many entrepreneurs prefer to produce bottled water from those wells in which it does not require any additional purification, so to speak, is produced in a “ready” form, or requires a minor “additional purification” process. Or, without “bothering” at all, they clean simple water “sources”. What you do is up to you.
Room
In fact, to produce bottled water, only two premises (rooms) in the building are enough. In one of them the water will undergo purification, in the second - bottling into containers will be carried out. True, we will also need premises for staff and premises for a warehouse for finished products.
As I said above, the premises must comply with SanPin requirements for food production and fire safety standards. Of course, ideally, the production of bottled water should take place in close proximity to the artesian well where production will take place. Otherwise, you can lose a lot on logistics costs.
Necessary equipment
To organize the production of bottled water, you will need the following technological lines (taking into account your own water production from an artesian well):
- Borehole deep-well pump.
- Special filter for rough water purification. As a rule, these are carbon and/or sand filters.
- Special filter for fine water purification. Such filters purify water from excess mineral salts, silver, fluorine, sodium, etc., or, conversely, if they are deficient, they saturate the water with them.
- Ozonizing devices designed for water disinfection. Sometimes, for the same purposes, water is first exposed to ultraviolet rays.
- Sterilized containers for storing water.
- Automatic line for filling water into containers.
- Semi-automatic machine for capping water bottles.
- Label machine.
In order to reduce the cost of finished products, it would also be advisable to purchase a line for the production of plastic containers for water.
A bit expensive? Yes, but do not forget about the scale of production and the profits received. Currently, according to Rosstat, the supply of bottled water meets market demand by only 30%. Analysts have drawn figures according to which every year this percentage will rise by 5-10 points. This means that you should hurry up in order to have time to position your “water” brand on the market.
Manufacturing process
Although the technological process for producing bottled water can be understood from the components of the necessary equipment, I will still break it down:
- Drilling an artesian well.
- Extracting water from a well.
- Cleaning with coarse filters.
- Cleaning with fine filters.
- Exposure to ultraviolet light.
- Ozonation.
- Treatment (by ozonation) of containers and stoppers.
- Pouring water.
- Sending finished products to the warehouse.
A few words about the staff. I deliberately did not separate this into a separate section, because little really needs to be said: to service a bottled water production plant, 20 people are enough, of which at least a third should be familiar with the equipment.
The availability of water from a tap in your apartment or from a well in rural areas is not always an indicator of the availability of high-quality liquid that can be consumed in its pure form without additional processing. Unpleasant smell, color and taste are the least evil that awaits people when trying to quench their thirst. There may be the presence of microbes and viruses that cause dangerous diseases. Therefore, many today do not want to drink homemade water, believing that the bottled option is safer. The demand for liquid from a store or from a manufacturer is growing and gives citizens reason to think about how to start drinking water production from scratch? The competition is tough, but there is an opportunity to make money if you approach the matter correctly. Our step-by-step instructions will help you understand where to start a water business, what documents to collect, how much money and effort to invest.
How to organize
For many, this business idea will seem like a simple and easily implemented idea. He received permission to sell water from a specific source, put it through a purification system, poured it into a bottle and sent it to store shelves. But that's not true. Water is a product that receives special attention from regulatory authorities, especially the SES. If the liquid does not meet the content requirements, the consumer will never see it.
Before equipping production areas, you need to find a source from which water will be collected. The sample is sent to the laboratory for analysis. After a positive conclusion about the quality, you can obtain permission to use it to produce water that will reach the buyer.
Starting production is possible after determining the type of source:
- Through the water supply tap, crashing into the general system.
- Drilling your own well.
- Having found a spring or spring with good water in sufficient volume.
The entrepreneur chooses his option and begins collecting documents for the implementation of the project. It may take a lot of time.
What documentation will you need to collect?
Having chosen the source of raw material extraction, we collect the liquid into a container and take it to a private or public laboratory. We determine the quality of water, the presence of microorganisms, and harmful substances. The conclusion will show how difficult the further stage of purification and enrichment of the product with useful additives will be. If the composition does not meet your goals, you need to continue searching for a source or enter into an agreement for the supply of raw materials from a trusted raw water producer.
- We enter into an agreement with a partner or obtain permission to drill our own well.
- We contact the energy company to sign an agreement for the use of a separate line for water production.
- We receive a conclusion from the SES on the condition of the premises, compliance of the equipment with sanitary requirements (absence of materials that emit harmful substances that can get into the water during processing and bottling).
- Ready-to-drink water will also have to receive a separate quality certificate from the SES after production starts. Inspections will be carried out frequently and at every stage of activity to ensure that no violations occur.
- Lease agreement for the premises in which the production will be located. If the building is owned, then you need to provide a certificate.
- Documents on the legality of the business are drawn up at the Federal Tax Service, where, after registration, an individual entrepreneur or LLC certificate is issued. You choose the registration form yourself, taking into account your personal circumstances. Let’s not forget to indicate the type of activity according to OKVED. In our case, we choose No. 11.07 - “Production of soft drinks, various bottled drinking waters.”
- A conclusion from the fire department will be required regarding permission to produce water in the selected premises.
This is the main list of documents that will have to be collected to start water production and further work.
Project Specifications
In order for water to be of high quality in taste and composition, you must not skimp on the premises and its equipment. Typically, production is located near a well, tap or other source of raw materials. Some manufacturers choose to transport raw water separately to a processing facility and bottle it. The equipment must have a modern multi-stage filtration system to eliminate the risk of obtaining an incompletely purified product. This can contribute to rapid spoilage of water and the appearance of a musty odor. It is better to choose an automatic full-cycle line from filling raw materials to filling into containers.
At the initial stage, you should not spend money on additional enrichment of water with salts, minerals, gas, or sweeteners. You need to understand whether production in the region is profitable and can compete with other companies. The premises must have enough space for a workshop, staff rooms, administrative sector, and storage areas. The workshop area must be clean and sterile. Therefore, it won’t hurt to make cosmetic repairs. Raw materials must be stored in special containers that are tightly closed and do not react when in contact with water.
A separate issue is the supply of packaging. Many entrepreneurs make plastic containers on their own, purchasing special equipment for blowing bottles from blanks. This eliminates the risk of microbes entering the container and makes it possible to choose the shape and color of the water packaging yourself.
The cost of equipment depends on the configuration and manufacturer. There are many offers on the market. It is worth considering what a small water production business is aimed at - small batches of drinking water without gas or a multi-functional workshop (sparkling water, mineral, sweet, medicinal). But it’s not worth saving on equipping the production line. Don’t forget about consumables (filters and other devices) that need to be changed in a timely manner so that the quality of the water does not decrease.
Positive and negative aspects of the enterprise
In any business there are pros and cons that you need to see in advance and try to find your benefit. Let us note the most noticeable shortcomings in this segment of small business:
- Dependence on inspection authorities. The SES monitors water quality, forcing samples to be submitted for testing. If the quality decreases or microbes or viruses are found, production will be closed until the problems are resolved.
- Tough competition. With a wide range of products in stores, from famous brands to little-known ones, it's not easy to find your place.
- The need to search for raw materials that would not require a large number of purification steps. The water should be to the taste of the consumer (such sources are not available in every region).
- The high cost of equipment may be unaffordable for a young entrepreneur if he cannot find an investor.
- Large-scale production requires large areas, which are not always available within the boundaries of a populated area. The further away the workshop is, the higher the cost of transporting products, which can increase the final price of water.
The advantages include the following points:
- Demand for purchasing bottled water is increasing because the quality of tap water in many homes leaves much to be desired.
- Quick payback and high profitability if consumers like the water.
- Possibility of expanding the range at any time, if there is enough space for installation of additional equipment.
- The water production procedure is simple and does not require special skills if you hire a good process engineer.
Eventually
It is possible to open the production of drinking water if there is a good water source, funds to purchase an automated line and distribution channels so that the products do not sit in a warehouse. More complete information on this type of business can be obtained from the business plan for the production of drinking water, posted on our website.
Any products and liquids must be of good quality so that a person is not at risk of serious poisoning and illness. The requirements for water are even stricter, because without it no life is possible. But there are few reserves of pure natural water that can be drunk without pre-treatment. The tap liquid has to be passed through a filter, settled or boiled. But when you are thirsty, there is no time or desire for such procedures. It’s easier to buy bottled water in a store or order it home through a delivery service. There is never enough drinking water, and demand is growing. This enables the entrepreneur to develop a business plan for the production of drinking water and offer his range on the market.
To understand what investments are needed to implement the idea, it is advisable to prepare a business plan for the production of drinking water with calculations. It can be presented as a clear example to banks or other partners who decide to help financially.
Summary
It is planned to launch the production of carbonated and still drinking water without any additives. The main activity is aimed at the production of soft drinks.
The raw materials will come from a personal well. The deposit was found, the quality and composition of the water was determined in the state laboratory. The well is located in a forested area. There is no opportunity to establish production directly at the source. Therefore, water will be pumped into reservoirs and delivered to production located in the suburbs.
Premises: 2-storey building with adjacent territory. The area of the premises is 300 sq. m. On the 1st floor there will be a workshop and warehouse, on the 2nd floor there will be rooms for staff and administration. The building requires repairs, redevelopment, and communications.
Form of activity: LLC (limited liability company). Activity code No. 11.07 – “Production of soft drinks, various bottled drinking waters.”
Taxation – simplified (STS).
Service list
- Production of drinking water, carbonated and still.
- Wholesale sales to grocery stores and supermarkets.
- Targeted delivery to customers upon call.
Production mode
Production: daily from 09.00 to 19.00.
Address delivery service: from 08.00 to 20.00.
Preparation of documents
Based on the fact that the raw materials will be used from your own well, you need to draw up documents for this site. Having received permission and the right to work, we submit the water for testing to a state laboratory. The expert report is in hand. The water does not contain large impurities, which will reduce the number of purification steps. The worse the water, the more expensive it will be to produce and the more difficult it will be to compete with water with better taste.
- Permission from the administration to open a drinking water plant.
- Lease agreement for premises in which drinking water production will be located.
- Conclusion of the SES on the possibility of opening a workshop in the selected area.
- Conclusion of the fire department on safety conditions.
- Quality certificates for equipment that will be used at the enterprise.
- Certificate of quality of water that will be supplied to the consumer. Without this passport, stores will not accept the goods on their shelves.
- An agreement with a power supply company to connect a high-power line, because the production line is fully automated.
- Employees must have a health certificate and an employment contract.
Project estimate
Let's move on to the important part of the business plan - calculations. This will allow you to determine the costs that will arise during the preparation phase for launching a bottled water line. Expense items are shown in the table:
| Type of expenses | Amount of investment, thousand rubles. |
| Collection of documentation and business registration (water analysis, well registration, approval by inspection agencies, product licensing) | 250 |
| Equipment of the production area | – |
| Automatic blow molding machine for plastic bottles from 0.5 to 10 l | 800 |
| Molds for containers | 50 |
| Line for automatic filling of water into containers (up to 3 thousand bottles per hour) | 900 |
| Apparatus for gluing labels on bottles and stamps with production date | 300 |
| Device for screwing caps on bottles | 150 |
| Saturator (apparatus for the formation of gases in water) | 300 |
| General PET Film Bottle Packing Machine for Transport | 400 |
| Submersible pump for pumping water from a well into a tank | 100 |
| Accessories for underground water supply connecting pump and reservoir | 500 |
| Water containers | 300 |
| Ozonator for disinfection and saturation of water with oxygen | 150 |
| Coarse and fine filters | 250 |
| Industrial water treatment station | 2 500 |
| Total | 6 million 150 thousand |
These are the costs of equipping a well and a water production workshop with equipment. Additionally, funds will be required for cosmetic finishing, furnishings, and communications.
Investment information is preliminary. The cost of equipment, finishing materials, and various services may vary because performers and suppliers have not yet been selected. But first, to launch the production of drinking water, investments of more than 10 million rubles are required. Transportation costs for moving raw materials from the well to the plant, delivering products to customers, and funds for production until the first profit is not taken into account are not taken into account. Let's add 1.5 million rubles to these costs. The final estimate is 11.5 million rubles.
Personnel issue
Manufacturing requires employees to work at the groundwater extraction site and in the plant. For full operation of the complex you will need:
- Specialists in underground water extraction – 2 people.
- Driver for transportation of raw materials and bottled water – 2 people.
- Equipment adjustment engineer – 2 people, shift work schedule.
- Operator for water production line – 2 people. in shifts.
- Operator for a container blowing machine – 2 people. in shifts.
- Manager of finished products warehouse – 2 people. in shifts.
- Sales manager – 1 person, working mode 5/2
- Dispatcher for receiving individual applications – 2 people. in shifts.
- Production manager – 1 person.
- Accountant with HR functions – 1 person.
- General workers – 4 people.
- Cleaner of production and office areas – 2 people.
It may be necessary to expand the staff as the plant develops. Salary costs are shown in the table:
| Employee category | Quantity, pcs. units | Salary | TOTAL |
| Water extraction specialist | 2 | 15000 | 30000 |
| Driver | 2 | 18000 | 36000 |
| Engineer | 2 | 20000 | 40000 |
| Operator | 4 | 15000 | 60000 |
| Warehouse Manager | 2 | 10000 | 20000 |
| Manager | 1 | 20000 | 20000 |
| Dispatcher | 2 | 10000 | 20000 |
| Production Manager | 1 | 30000 | 30000 |
| Accountant | 1 | 25000 | 25000 |
| Handyman | 4 | 12000 | 48000 |
| Cleaning woman | 2 | 8000 | 16000 |
| FZP | 23 | – | 345000 |
| Contributions | – | – | 103500 |
| General expenses | 448500 |
The plant provides a shift work schedule for some employees. This is due to the daily work of production in order to quickly reach the required profitability of the enterprise.
We are planning preparations for the opening
So that the preparation process does not drag on, we will set a time frame for each stage and follow this plan:
It will take about 6 months for the workshop to operate at full capacity. Perhaps the deadlines will shift due to unforeseen circumstances. It is desirable that water becomes available to consumers in the summer season. At this time, the demand for bottled water increases due to high air temperatures and increased thirst. You can quickly make a profit and analyze the profitability of your business.
Range and price level of water
The production is young and has not yet found its client. Therefore, you should not open a line of a wide range of bottled water. The list of products and prices are shown in the table:
As we reach the breakeven point, water for children and mineral water may be added to the range.
What do we get as a result?
Let's calculate the possible profit that water production should bring to an entrepreneur. We will take as a basis the sale of the entire assortment, provided that there will be a daily shipment of 2000 bottles of different sizes.
| Product type | Quantity, pcs. | Price per one. rub. | Revenue per day, rub. |
| Drinking water, still, volume 0.5 l | 250 | 15 | 3750 |
| Drinking water, still, volume 1 l | 250 | 20 | 5000 |
| Drinking water, still, volume 1.5 l | 300 | 28 | 8400 |
| Drinking water, still, volume 5 l | 250 | 80 | 20000 |
| Drinking water, still, volume 10 l | 300 | 140 | 42000 |
| Drinking water, carbonated, volume 0.5 l | 100 | 18 | 1800 |
| Drinking water, carbonated, volume 1 l | 200 | 22 | 4400 |
| Drinking water, carbonated, volume 1.5 l | 200 | 32 | 6400 |
| Drinking water, still, volume 2 l | 150 | 40 | 6000 |
| RESULT | 97750 |
Provided that daily revenue is 98,000 rubles and shipments are made at least 5 times a week, monthly revenue is planned to be 1,960,000 rubles. Now you can calculate the profitability and net profit that will be received per month. Income and expenses are reflected in the table:
At the initial stage, investments were made in the amount of 11.5 million rubles. The company will reach payback in 2.5 years. The deadline may change if the monthly turnover is higher than that taken as the basis for the calculation in the business plan.
We are strengthening our position in the segment
There are many drinking water producers on the market, so there is a serious struggle ahead. You need to think over a strategy to consolidate your position in the market and attract an audience that already buys bottled water. You will need the help of a specialist who knows the state of the niche and the positions of other manufacturers. We will turn our attention to the production side to provide people with quality water.
At the initial stage, our main focus is on delivering water upon individual request, so that local residents learn about our products. For this:
- Together with the supplier, we will launch a promotion designed for a large volume of supplies. For example, every 3rd bottle is free, or with a one-time payment of 10 bottles of water, a 10% discount on the entire volume.
- Conduct a water tasting in a supermarket so that consumers evaluate the quality and submit an application.
- Send electronic and written messages about cooperation with enterprises and offices on favorable terms.
- Offer services to kindergartens, schools, and universities at a reduced price for a one-time application of at least 5 bottles.
- Design a website on which to post information about your production and favorable terms of cooperation for retail and wholesale customers.
Monitor the pricing policies of your competitors so as not to get out of line with the excessive cost of drinking water.
Eventually
It is possible to earn substantial capital in the production of drinking water if you have the finances for this, a good source of groundwater and territory for a workshop. The investments required are huge, because the process of purifying raw materials requires only a high-quality automated line. Don't be afraid of competition. Consumers usually prefer water from local producers, believing that it is not profitable for a businessman to deceive his fellow countrymen. But you should be prepared for frequent SES checks on the quality and composition of products so that there is no threat to the health of consumers.
