QUALITY AND STANDARDS

ISI Specification for packaged drinking water is IS14543:199 8 and for package d natural mineral water is IS13 428:1 998. The Project is for processing and bottling of plain drinking and mineral water of 5000 bottles (one litre) per shift of 8 hrs. The total quantity of water processed and packed will be 15000 Litres/day in three shifts.

PRODUCTION CAPACITY

MONTH AND YEAR OF PREPARATION PREPARED BY

: March, 2003 : Small Industries Service Institute 111 and 112, B.T. Road, Kolkata - 35 (W. B.) Phone: 577-0595, 2596, 0597 and 0598. Fax: 577-5531. E-Mail- gram-smallindben

INTRODUCTION
It is needles s to mentio n that wate r, a compound of Hydrogen and Oxygen is a preciou s natura l gift which is very essentia l for surviva l of mankin d including animals. The water used for potable purposes should be free from undesirabl e impurities . Th e wate r available from untreated sources such as Well, Borehole s and Sprin g is generally not hygienic and safe for drinking. Thus it is desirable and necessary to purify the wate r and suppl y unde r hygienic condition s for huma n drinkin g purpose. As the nam e implies , the minera l water is th e purifie d wate r fortifie d with requisite amounts of minerals such as Barium , Iron , Manganese , etc. which

can be absorbed by human body. It is eithe r obtaine d from natura l resource s like spring and drilled wells or it is fortified artificially by blending and treating with minera l salts . The minera l wate r shall be m anufacture d and packe d unde r hygienic condition s in properl y washe d and cleaned bottles in sterilised conditions.

MARKET POTENTIAL
Unfortunately sufficient safe potable water is not available everywhere in the country , eithe r har mful chemica l substances are found in the layers of earth which enter into water or it may be contaminate d due to pathogenic microorganisms . If suc h wate r is consumed, the body suffers from water born diseases . Due to this , it has becom e

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P ACKAGED DRINKING WA TER/MINERAL WA TER

imperative to process and bottle safe potabl e wate r for th e mankin d in prevailing conditions. The deman d for purifie d wate r becomes more during summer season. Althoug h few com panie s hav e already entered in the bottling of safe potable wate r and mineralise d wate r, but still huge gap is there in between demand and suppl y at all metropolitan-citie s and towns. The product is widely accepted in offices, restaurants, railway stations, airport , bus stands , hospital s and to some extent even in rich house-holds. So there is good scope for establishing the unit s for processin g and bottling plain and mineralised drinking water in different parts of the country.

B ASIS AND PRESUMPTIONS

1 2 3 4 5 6 7 8 This project has been drawn on the basis of following presumptions. Working hours : 10 per shift Number of : 2 shift/day Number of : 365 Working days per annum Total number of : 72 working hours Working : 75 % efficiency Total period for : Third year achieving from maximu m the date of capacity commencement utilisatio n of production. Margin money : 25% of Capital Investment Rate of Interest : 15% per annum of Capital

9 Construction Cost of Building, Cost of Land, Labour Charges and Cost of Plant, Machinery considere d as per prevailing rates in the market.

and Equipment

hav e

bee n

10 Cost of Installatio n and Electrification of Machiner y and Equipmen t has been taken at the rate of 10% of the cost of Plant and Machinery. 11 Operative period of the project has been considered as 7 years.

IMPLEMENTA TION SCHEDULE

It is expected that total time of about 9 m onths will be taken from the date of approva l of the schem e for complete implementation . Break-u p of th e activities and relative time for each of them is shown below: Natur e of Activity 1. Preparation of Project 2. SSI Provisional Registration 3. Sanction of Loan Time Period (in months) 0-1 month and its approval 1-3 months 2-5 months

4. Clearance from 2-5 months Pollution Control Board and taking permission from Municipal Health Authority/BIS etc. 5. Placement Order for 6. Installation of machin7. Power connection Electricity Board 4-6 months machiner y of equipm ent 6-8 months ery and equipment from 2-6 months arrangement

P ACKAGED DRINKING WATER/MINERAL WA TER

10 1 8. Appointment of staff etc. 9. Trial run 10 . Commencement of registration/marketing 5-8 months 8-9 months 9m onths Production and perma-

onwards

nen t

TECHNICAL ASPECTS
Processin g and Bottling Raw wate r to be processe d is collected in tanks. A known quantity is pum ped into the above tank where the wate r is doze d with alum for coagulation with heav y metal s or insoluabl e matters. The water after coagulation is allowed to settl e for an hou r. The impuritie s may be remove d by Revers e Osmosi s techniques also. The supe rnatant water is taken to the chlorination tank where primar y disinfectio n is brough t abou t by bubblin g chlorin e gas. The wate r is then passed through sand filters for trapping of undissolve d impurities . The wate r after san d filteratio n is passe d throug h Carbon filters for removal of odou r, colour and also for dechlorination . It is the n passed throug h serie s of micr o fillers comprising 5 micron , 1 micro n and 0.4 micro n filter followe d by ultraviole t disinfection syste m for termina l disinfection . Packing is done in PET bottles of 1 litre capacity throug h an automati c rinsing , filling, and capping machine fitted with an Ozone generato r. The bottles after capping are shrink wrapped (Optional) and packed in corrugate d boxe s of one doze n each. Qualit y Contro l and Standards The plain drinkin g wate r has to be bottle d in pe t bottl e as per (IS:14543:1998 : Package d Drinkin g Wate ran d IS Specification s

IS:13428:1998 : Package d Minera l Water). The details of the specification can be obtained from Bureau of Indian Standard, Manak Bhawan, 9, Bahadur Shah Zafar Marg, New Delhi 110002. P r oductio n Capacity Quantity : 45 lakh Bottles per annum Value : Rs. 281.25 lakh. Motive Power 50 H. P. Pollutio n Control

Although this unit will not affect the environment , but the enterpreneur s are advise d to obtain , No Objectio n Certificate from competent authority of Stat e Pollutio n Contro l Board . They should develop Kitchen Garden in the factory premises to utilise waste water from the plant. Energ y Conservation Suitabl e m easure s shoul d be adopted to use appropriate amount of fuel and electricity . The promoter s shoul d arrange periodic auditing of electrical consumption , as the uni t will be running in three shifts. Unnecessary operation of machine s shoul d be controlle d to avoid exces s consumptio n of electricity. Natura l ventilatio n in productio n prem s may be mad e availabl e to avoid use of electrica l ise powe r durin g day hours.

FINANCIAL ASPECTS
A. Fixed Capital
i) Lan d an d Buildin g 1. Land 0.5 Acres Amoun t (Rs. in lakh) 1.00

2. Total covered area required for 26.00 filteration, raw material storage, packaging material storage, machinery, Spare

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P ACKAGED DRINKING WA TER/MINERAL WA TER

Land and Buildin g

Amoun t (Rs. in lakh)

parts, store, Finished goods, Office, Quality Control Lab, Toilets, Electrica l Switch room and miscellaneous etc. 6500 Sq. ft. @ Rs 400 per Sq. ft. 3. Boundary wall and Civil Works Tota l Sl. Particular s i) iii) iv) vi) Alum. Treatmen t tank s Plant 2000 Lit/ Chlorinatio n tank s Sand filter Micron filters (5, 1 and 0.4 Mic) Ind. -do-do 3 2 1 3 1 1 1 1.20 ii) 3.00 on gate etc. 30.00 ii) Plant and Machinery Ind. / Qty . Total No. Imp -do(Rs . in lakhs ) 1 3.20

Reverse Osmosis

0.80 m ade of S. Steel 0.50 v) 0.40 0.32 system 0.30 ix) 3.15 xi) Electroni c dose r Raw and Purified 2 4 0.30 1.60 Activated Carbon filter -do 0.60

vii) Ultraviole t disinfectan t viii) Electronic doser for alumfor Chlorine x)

Ozone Generator wate r collection tanks with m otor and accessories

xii) Automati c rinsin g filling xiii) Shrin k wrapping machine for bottle

7.50 and cappin g m achine 0.15

xiv) Miscellaneou s tools 1.50 equipm ents , pipelin e etc. and Plastic crates etc. xv) Laboratory testing and 1.50 Qualit y Control, Micro-biological instrument s etc. Electrificatio n and Installatio n charge s @ 10% of plant and Machinery 2.30 Total 25.32

iii) Othe r Fixed Asset s i) ii) Cost of furniture , furnishin g Cost of deep bore tubewell 0.88 and Official accessories 1.30 for water reservoir 1.00

Tota l (Rs. in lakhs)

iii) Securit y Deposi t to Electricit y Deptt. etc.

iv) Preliminary and Pre-operative 1.50 Expense s includin g Company Formation, Project Preparation, Interest during constructio n period , Start-up Expenses etc. v) Delivery van and contingency etc. 5

Technica l Consultancy , Travelling Expenses,

Total iv) Total Fixed Cost 1. Land and Building 2. Plant & Machinery 3. Other fixed assets Tota l (Rs. in lakhs) 30.00 25.32 9.68 Total

9.68

65.00

B. Workin g Capita l (per month)

i) Raw Materia l 1. PET/PVC bottl e includin g cap (3.75 lakh bottles) 2. Chemical s and Reagent s etc. (L.S.) 3. Corrugate d boxes , stri p, tap etc. Tota l a) Administrative Sl . Designatio n No. 1. Factory Manager 2. Clerk-cu m Typist and Supervisor No. Salar y Amoun t (In Rs.) 1 1 600 0 250 0 250 0 300 0 100 0 6,000 2,500 2,500 3,000 1,000 Total 5 15,000 13.50 labels etc. 1 lit. size @ 3.60 0.50 3.10 17.10 ii) Salary and Wages Tota l (Rs. in lakhs)

3. Stor e cum-Purchas e Office r 1 4. Accountan t-cum-Cashie r 5. Sweeper (part time) 1 1

P ACKAGED DRINKING WATER/MINERAL WA TER

10 3
b) Technical Staff Sl. Designatio n No. 1 2 3 4 5 6 Productio n Manager Lab. Assistant Productio n Superviso r Skilled Workers, and Mechanic Driver Un-skille d Worker s Chowkida r Total Salary and Wages Rs. 56,000 + Rs. 15,000 and wages Total Say iii) Utilities i) Electricity 40 0.746 20 25 2.75 0.41 0.04 Total iv) Othe r Contingen t Expense s 1 2 3 4 5 6 7 8 9 Postage and Stationery Telephone/Fax Charges Amoun t (In Rs.) 50 0 50 0 1000 1000 2500 50 0 30 0 3200 50 0 1000 0.45 77,000 0.7 7 lakh Tota l (Rs. in lakh) No. Salar y Amoun t (In Rs.) 1 1 3 9 3 3 600 0 200 0 300 0 300 0 200 0 200 0 6,000 cum-Chie f Chemist 2,000 9,000 27,000 6,000 6,000 Total 71,000 Perks and benefits @ 8.5% of salary 6,000 20 56,000 includin g Electricians

ii) Fuels and other

Consumabl e Store s Repairing and Maintenance Transport Charges Advertisemen t and Publicity Insurance and Taxes

Sales Expenses Licence and other Fees

10 Miscellaneou s Expenses

v) Workin g Capita l (per month ) 1 Raw Materials/Packaging Materials 2 Salary and Wages 3 Utilitie s 4 Recurrin g Expense s Total Working capita l for 3 months 18.4 3 3 =

Tota l (Rs. in lakhs) 17.10 0.77 0.45 0.11 18.43

Rs 55.2 9 lakh

C. Total Capita l Investment

Tota l (Rs. in lakh) i) Fixed Assets Total 65.00 ii) Working Capital (for 3 months) 120.29 55.29

FINANCIAL ANALYSIS
1) Cost of Productio n (per annum ) i) Working Capital for One year Tota l (Rs. in lakh) 221.16 3.50 18.04 Total 244.15 ii) Depreciation on Building @ 5% p.a. 1.45 iii)

Depreciation on Plant and Machinery and M iscellaneous @ 10% p.a. iv) Interest on Total Capital Investment @ 15%

Total Say

11,000 0.1 1 lakh

2) Turnove r By sale of 45 lakh bottles @ Rs 75 per crate (Factory premises)

Amoun t (Rs . in lakhs) 281.25 (3.75 lakh crate s of 12 bottles

3) Profit (pe r annum) Profit = Turnover Cost of Production = 281.25 244.15

= Rs 37.1 0 lakh

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P ACKAGED DRINKING WA TER/MINERAL WA TER

4) Net Profi t Ratio = = = 13.19% Profit 100 Sales Turn over 37.10 100 281.25

5) Rate of Return = = = 3710 120.29 30.84% Say 31% 6) Break-eve n Point i) Fixed Cost (per annum ) i) Total Depreciatio n 3.70 iv) 40% Utilities and other expenses 0.10 Total B.E. P. = Fixed Cost 100 Fixed cost + Annual Profit = = = 29.43 100 29.43 + 37.10 2943 66.53 44.24 Say 44% 29.43 4.95 ii) Amount(Rs . in lakh) Profit 100 Tota l Investment

Total Interest 18.04 iii) 40% Salary and Wages 2.64 v) Tax and Insurance fees etc.

Addresse s of Plant and Machinery Supplier s 1. M/s. Sonalifabs 71, Biren Roy Road (West) Kolkata-61. 2. M/s. Enviro Tech Utility, 32A, Main Patel Road, Opposite Wings Show Room, West Patel Naga r, New Delhi-11 0 008. 3. M/s. Watrio n Water and Filter Engg. Pvt. Ltd. 1 Harsiva n Apartment , Ground Floo r, (Behind Canara Bank), West J.P. Road, Andheri (West), P.B. No. 7372, Mumbai-70 0 059. 4. M/s. Rital Agencies 55 III Main Road, Gandhi Naga r, Chennai-70 0 020. 5. M/s. Ion Exchange India Ltd. Ticcon House, Dr. E. Houses Road, Mahalaxmi, Mumbai-40 0 011. 6. M/s. Alpha Engineering 158 , Pocket-E-20 , Sector-II , Rohini , Delhi-11 0 085.