Many countries in South America, Africa and Asia
experience clean water shortage. Drinking water is in high demand and water
sachet producers have sustained and regular demand.
If you are in a location with serious water shortage then
sachet water business is your best bet. The business is so lucrative that practitioners
tend to acquire large fortunes.
The business requires huge startup capital, manpower and
effective strategy. Moving water is stressful and challenging and you need
proper logistics to succeed. There are a few things to consider before starting
the business.
Why Start
a Sachet Water Business
There are lots of reasons to start this business. The
primary reason is huge profit potential and other economic reasons.
Others include poor infrastructure by government and
inadequate water supply. More indicators are increase in population, essential
commodity, affordability and prevention of waterborne diseases.
Startup
Costs
The startup costs depend on the scope and size of the
enterprise. Other cost considerations are land procurement, equipment costs,
labor, transportation and marketing.
Sachet
Water Factory Site
Make sure you choose a location that has serious drinking
water challenges. The factory should have proper utilities, piping, machinery
and storage equipment.
The factory should be accessible with good road network
to accommodate heavy vehicles. Ideal locations are within residential areas and
highly populated areas.
Water
Sources
The location could be close to a natural water source,
spring, lake or dam. You could source the water by digging boreholes, wells or
create a reservoir.
Make sure the site
is far from contaminated soil, refuse dumps, and fuel deports. More bad
locations are close to septic treatment plants, pit latrines and fuel deports.
Water
Source
- natural water source
- spring
- lake
- dam
- digging boreholes
- wells
- Create a reservoir.
Register the Business
Register the business as a sole proprietorship or limited
liability company. You need tax identification number and trade license.
Your products are subjected to quality test and
registration by NAFDAC. Once approved the National Agency of Food and
Administration would provide a NAFDAC number.
- limited liability company
- tax identification number
- trade license
- NAFDAC number
- NFDAC approval
Sachet
Water Making Equipment
Most sachet water companies dig boreholes and install
water treatment units. More are equipment are boiler, filter units.
They install overhead tanks, automated filling/sealing
machines and nylon materials. They have heavy duty trucks that carry and
distribute the product.
The companies outsource printing of the logos to local
screen printers. You need a generating set, small fork lift (optional).
An average factory is capable of producing 120 bags per
hour equivalent to 400-500 bags a day at full capacity.
Equipment
- dig boreholes
- pumping machine
- water treatment units
- boiler
- filter units
- heavy duty trucks
- overhead tanks
- wooden pallet
- automated filling/sealing machines.
Pricing
You need to consider point of entry costs, production
costs and utility. Others are transportation costs, handling, materials and
staff wages. The price of the product is moderated by the local association.
Water is sold at predetermined prices by members and cuts
across the particular local government. Therefore the price of the product is
uniform to avoid undue competitiveness and underhanded practices.
The water is packaged in 20 pieces of 500ml sachets in a
large nylon bag. Staff.
Hire
Staff
A small water sachet producer requires man labor to
carryout the distribution and loading. They could purchase a forklift or load
trucks manually.
Staff requirements
include drivers, machine operator, and accountant. Others are driver assistant,
cleaner and security guards.
Factory
Staff
- Forklift driver
- casual laborers
- drivers
- machine operator
- accountant
- driver assistant
- cleaner and security guards.
Marketing
The major challenge in sachet water business is
distribution and getting new customers. The business is highly competitive and
there are many players.
To secure buyers you need a delivery truck and marketing
strategy. Hire sales representatives to find retailers and shop owners in your
locality. Producers also sell to private individuals who purchase in bulk.
How
to Start Sachet Water Production
- Secure a business premises
- Incorporate the business
- Sink a bore hole
- Install overhead tanks
- Equip a distillation system
- Apply for NAFDAC approval
- Purchase sealing equipment
- Install a generator
- Nylon bags
- Packaging material
- Employ staff
- Market the products
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