So, I ran into a couple of people arguing “Is sachet water business profitable”?
The sachet water production is a formidable business. The profitability is unquestionable as this product is consumed in large quantity on a daily basis by citizens of this country, it is sure to yield profits if it is well managed, the demand of pure water supply is always on the rise.
It is an imperative fact that the product to deal in is the one with high demand.
Setting the business up is not a herculean task if all the resources are in place, I am here to give you the low down;
- Land- You need to acquire land either by ownership, rent or lease, all production processes will be executed on it. This step is compulsory and has to be adequately prepared for.
- Register your business name
The name that will appear on all your products has to be registered to avoid legal implications. Asides that it is a step in the branding of your goods which is very important for most businesses. Branding is very important in business, so in addition to your business name, design a very professional logo for your product because they say what a person perceives about a product is what sells the product to him!
- Sink a Borehole- The borehole remains the best method to access clean water that can be easily purified, the borehole will supply water constantly and must be available and within the premises.
- Install Tanks- This serves as a reservoir for the water from the borehole to the distillation system, it has to be meters above ground level to make sure there is enough pressure to be able to push water down the distillation chamber.
- Install Distillation System- Distillation systems widely used in Nigeria are usually micro filters and cup filters, using an advanced distillation system depends on how much is being invested in the business, if the cost is within budget, then it can be installed.
But in absence of such a system, a widely used purification process known as Ultra Violet sterilization bulbs process is adopted. After distillation, you need to take your product to the laboratory for an array of tests.
- Get NAFDAC Approved- To start any business that sells consumables to the public, it has to be approved by NAFDAC. Water is consumable and the product this business offers is consumed by a significant part of the population, hence, proper steps have to be in place prior to the release of such products to the public one of which ascertainment by NAFDAC that the product is fit for consumption is one of it.
- Acquire Equipment- Equipment needed for the production of sachet water asides from the water distillation and purification equipment is an automatic sealing machine, it seals the nylons after they have been filled.
- Employ Staff – Labor is an important factor of production and cannot be overlooked, especially in this venture. A minimum of 6 persons is required to run the production plant smoothly, this might increase in the long run.
- Distribution- The product will have to be distributed by the company too, a truck or lorry will serve this purpose.
- Power Supply- The state of power supply in this country is news to nobody, a standby generator that can work perfectly while powering all the equipment used must be acquired.
So to answer their questions as asked earlier, “Is sachet water business profitable”? Yes, it is.
HOW TO START A SACHET WATER PRODUCTION BUSINESS?
A bag of water costs #100. The profitability of this business solely depends on the amount of sachets produced per minute and this is directly dependent on the amount and efficiency of the equipment.
One sealing machine will seal 40 sachets per minute, which is 2 bags, in an hour, that is 120 bags, and depending on how many hours you set up for production at your plant you can have 800 – 1300 bags per day, you can make a profit of 80,000 – 130,000 a day, if all bags are sold, now the daily sale of bags depends on your distribution, marketing your product is one important part of the distribution and getting them to their buyers is another, if your van can get 1300 bags to customers in a day then that is 130,000 per day. Now imagine if you have double the equipment with matching marketing efforts and strategies, the profit only doubles, although some costs show up intermittently like fuel for all engines used in the company and maintenance of equipment.
How To Download The Sachet Water and Bottled Water Business Plan Template
Above is a part of the sachet water and bottled water business plan template in Nigeria. If you want the complete business plan with the full financial plan, calculations, and more, follow the procedures to download it.
Pay the sum of N5000 (Five thousand naira only) to the account detail below:
Name: Oyewole Abidemi (I am putting my name and not our company account so you know we are real people and you can trust us)
Thereafter, send us your email address through text message to +234 701 754 2853. The text must contain the title of the business plan you want and also your email address. Immediately after the confirmation of your payment, we will send the sachet water and bottled water business plan in Nigeria to your email address where you can easily download it.
IS SACHET WATER BUSINESS PROFITABLE?