The production of sachet water in Nigeria is a very profitable enterprise if you do the management properly. Many quantities are consumed on a daily basis and there is always demand for its supply. This is because there is increasing population in the country. When you enter any major Nigerian city, you will see the streets litred with pure water. This shows the daily consumption. Investors should know it is better to invest in products with a very high demand. This have brought in many investors to this enterprise.
Steps To Start Pure Water Production Business in Nigeria
The main thing to consider in the enterprise is to render service to humanity.
1. Get a place
You will require to get a property or rent a place or use your own property and then develop it. This is among the most preferable option since you save the cost. Ensure that the place you are going to operate this pure water enterprise will facilitate easy transportation of the products to the market. Choose places that are more convenient.
2. Register the name of your enterprise
You now name the pure water enterprise. Branding is important in many enterprise so after doing this, you can design a professional logo that you can use for your product. This will make your brand to stand out. The name for the enterprise should be unique name not used already by another pure water enterprise. Ensure that the name is unique to avoid unnecessary any confusion.
3. Get a borehole
For sachet water and pure water, the most common water source is borehole. This will ensure that there is constant supply of water in your factory. Make sure that the borehole is well sunk by technicians to avoid excessive costs involved in mending poorly sunk boreholes.
4. Get overhead tanks installed
This will be the reservoir that can supply water to the distillation. This should be kept overhead in order to make sure that there is proper pressure that can pump the distillation. Ensure that the overhead tank is a durable one. Make it clean to avoid dirtying the pure water. Pure water should maintain it’s name as a water that is pure and not otherwise.
5. Install distillation system
This can be cup filters and micro filters and this is dependent on the capacity of your start up, but if it happens that you will not be able to afford it, then the comprehensive distillation is your option. You can also use the purification process which is known as the Ultra Violet Sterilization bulb process. You will need to take your product after the distillation to the laboratory for the results. Ensure proper set up of the distillation system.
6. Obtain the NAFDAC endorsement
NAFDAC is the body in Nigeria that supervise drugs and foods. You will need their endorsement to engage in pure water enterprise in Nigeria. NAFDAC endorsement makes you a legitimate operator of the pure water enterprise in Nigeria otherwise your products will have an illegal status.
7. Get the Automatic Sealing Machine
The price of this machine ranges from N400000 to N1M. You should prefer the ones that produce or seal up to 40 sachets in one minute.
8. Get employees
You will have to employ up to 5 persons to operate this factory as a start up after which you increase it depending on the demand.
9. Mobilise for transportation
You will need a truck for this and you will have to buy your truck because renting can be expensive often. If you can afford a truck, then buy it.
10. Power supply
If your area does not have efficient power supply, then you will need a generator at standby. 25 KVA generator will do the job. When you have obtained all this, then you are good to go.
Sometimes depending on the start up and what you have already, you will require about 5 million naira to start so as to get the nylon, sealing machines and other items so as to pay your laborers before the profits start coming. If you are hiring trucks and renting the place, the costs tends to be higher.
The Profit Capacity Of Sachet Water Production
Let’s say you have just one automatic sealing machine that has the capacity to produce your sachet water and then you afford a delivery van for your product distribution. At 100% capacity utilisation capacity of one automatic machine the capacity is 40 sachets in one minute which is 2400 sachets in one hour and this is equivalent to up to 120 bags in an hour.
We now conclude that you can produce 100 bags in average on one hour assuming that you happen to operate 4 hours in one day and one machine produces 400 bags in a day. However an average factory producing water gets 700 bags to 800 bags for each machine in one day and this is dependent on how you operate. Now continuing with 400 bags per day and you sell a bag for N70.
When you sell 400 bags per day, you get 400 bags * N70 per day= 28000 in a day. When you multiply 28 wording days with N28000, you get N784,000 for a month and then you multiply it by 12 months of the year, you get N9,400,000.
Why Invest In Sachet Water Production Enterprise
a) The quantity of water provided by the government is not sufficient for the masses and the use of sachet water is a reasonable option.
b) There is increase in the population of Nigeria making more people to need drinking water which is the high demand for pure water.
c) Everyone will have to drink water on a daily basis and this is the most consumed and essential natural item.
d) Sachet water actually have no better substitute where majority prefer it to the expensive bottled water.
e) Sachet water is becoming more popular in Nigeria and this include villages and towns in Nigeria.
f) It generates revenue for the government and this have made them to encourage this.
g) There is not much different among consumers and this is acceptable among the poor and the rich is commonly used in parties and events.
i) There is no religious belief or law restriction like alcohol and other drinkable products
j) There is already a market for the products of sachet water enterprise.
k) The (ROI) Return on Investment is more than 50% and this can increase as the enterprise expand.
l) It does not require much raw materials since water is a natural free gift.
Now you have known how to start a pure water enterprise in Nigeria. Why not give it a try? You can ask questions if you have any using our comment box.