AQUA COLD

Proprietor : Shri Ritupan Sensua

PROJECT REPORT ON PACKAGED DRINKING WATER

Location: Mini Industrial Estate, Moran, Dibrugarh.

Product NIC Code (2004) Product Code (ASICC2004)

: : :

Packaged Drinking Water 15521 15543

Production Capacity (@100%) p.a. :

1 Ltr. Bottle 2 Ltrs. Bottle 20 Ltrs. Jar 21,60,000 8,40,000 48,000

Prepared by

ARVIND VARMA Chartered Accountant Khaliamari Road Dibrugarh.

CHAPTER - I PROJECT SUMMARY 1. 2. 3. 4. 5. 6. Name of the Firm Constitution Proprietor Address Size of Plot Location : : : : : : AQUA COLD Proprietorship Mr. Ritupan Sensua East Milan Nagar, P.O. C.R. Building, Dibrugarh, Assam. 8,000 sq. ft. Mini Industrial Estate, Moran, Dibrugarh, Assam. 447.10 sq. mtrs. Packaged Drinking Water 16,000 Litres Water and various chemicals 50 KW 10 Persons (Rs. Lakhs) Leasehold 16.28 63.00 8.10 4.35 0.60 0.75 1.50 2.80 97.38 Lakhs

7. 8. 9. 10. 11. 12. 13.

Covered Area Proposed Project to be set-up Daily Capacity Major Raw Materials Power Load Required Employment Total Fixed Cost of the Project a. b. c. d. e. f. g. h. i. Cost of Plot Building & Structures Plant & Machinery Electrification 2 nos. Delivery Vans Computers Furniture & Fittings Other Assets Margin Money for Working Capital Total :

: : : : : : : : : : : : : : : : :

14.

Means of Finance a. Term Loan from Bank : - Term Loan b. Promoters Contribution towards: - Fixed Cost 31.38 97.38 66.00

Total

97.38 Lakhs

Promoters Share to Project Cost Debt-Equity Ratio 15. Annual Profitability (1st Year) a. Annual Revenues b. Net Profit c. Percentage Profit on sales d. Annual Return on Investment e. Average Break-even-Point f. Debt-service Coverage Ratio

: :

32.22 % 2.10 : 1

: : : : : :

Rs. 99.13 Lakhs Rs. 9.69 Lakhs 9.77% 9.95% 32.85% 2.08

CHAPTER - II INTRODUCTION Water forms an essential part of every human being. Since it is a human necessity it makes best sense to do business in. As a normal human being requires an average of 2-3 liters of water every day and world population is growing at 2-3% annually, the business opportunity is enormous and the potential is largely untapped. The bottled water industry is estimated to be a whopping Rs.1,600 crores business. It has grown at a rate of 38-40% annually over the past four years. Initially bottled water brands like the French manufactured Damone were promoted at clubs, fitness centers, cinemas, department stores, malls, ice-cream parlors, cafes and retail sports outlets, besides restaurants, hotels and supermarkets with a price tag of Rs. 70/- for 1 liter bottle. Other brands later began pitching for the larger middle class and lower middle class markets.

PLANT CAPACITY PER ANNUM

The unit is proposed to produce packaged drinking water at 100% per annum as follows: (i) 21,60,000 bottles of 1 Litre; (ii) 8,40,000 bottles of 2 Litres and (iii) 48,000 Jars of 20 Litres each

MARKET & DEMAND ASPECTS

Earlier bottled drinking water was privileged to high class, foreign tourist and highly health conscious people but the present decade has witnessed increasing popularity among average consumers, increasing living standards, disposable income, education and awareness among the consumers domestic and foreign tourist, sophisticated business houses and offices has increased rapidly the sales of bottled water in recent years. The growing demand for bottled water speaks volumes of the scarcity of clean drinking water and the quality of tap water. It has become an icon of healthy lifestyle emerging in India. Selling safety i.e. pure and simple water has now become one of the fastest growing industries in India despite the harsh truth it is build on the foundation of bad governance, inequality and obvious exploitation. However, bottled water provides the distance advantages of convenient packing, consistent quality and is ubiquitous. This particular industry in India has never looked back after the economic liberalization process of 1991-92. In fact the fastest growth in the consumption of bottled water in the world has been recorded in India according to a new study conducted by the US based earth policy institute. According to Bureau of Indian Standards (BIS), there are 1200 bottling plants (out of which 600 are in the state of Tamilnadu) and 200 brands of packed drinking water across the

country (nearly 80% of which are local) hitting over the markets which thoroughly signifies the market is big, even by international standards. These are boom time for the Indian bottled water industry more so because the economics are sound. India is the tenth largest bottled water consumer in the world. The 20 litre bulk water jars have found phenomenal acceptance in house hold and at workplace. With the growing market size, one can imagine the employment opportunity being created with the surge in bottled water industry. The bottled water market is dominated by major player such as Coco-cola, Pepsico, Parle, K.K. Beverages, Manikkchand, Tata-Mount Everest. Although we have a large number of players, Parle was the pioneer among the major player when it was launched in India, 35 years ago. Market segmentation of bottled water in India Segment North East West South Share (%) 25 10 40 25

C H A P T E R - III ABOUT THE FIRM / PROMOTER

Aqua Cold is a proprietorship firm. The promoter of the project is a B.Sc. Gradutae, financially sound and possess rich experience in business. At present he is carrying the business of (i) Maruti Service Centre at Amollapatty, Dibrugarh, Assam and (ii) Contractors. After thorough study of the market demand of packaged drinking water, he is keen to set up the project.

Bio-data of the promoter is as under :BIODATA Name Address : : Shri Ritupan Sensua East Milan Nagar, P.O. C.R.Building, Dibrugarh, Assam. Experience : Possess rich experience in business activities. Sound (Balance Sheets enclosed)

Financial Background

C H A P T E R - IV PROCESS FLOW CHART

RAW MATERIALS
The main raw material is water which is purified and made into finished product.

PROCESS OF MANUFACTURING
The water is processed with multi stage purification processes such as Big Blue Filter for Sedimentation, Sand Filter, Activated Carbon Filter, Iron Removal Filter, Ultra Filtration, Reverse Osmosis and Ozonization. Big Blue Filter for Sedimentation Sand filter The filter is for larger bits of sediment and the deals with smaller viruses and chemicals. Eliminates load of total suspended solids in the raw water. This filter removes most of the organic contamination and pesticide residuals from the water. It also controls taste and odor of water.

Activated carbon filter

Iron Removal Filter Ultraviolet disinfection (UV)

It shall remove the excess iron in water. Water is exposed to UV light of wavelength 245 nanometers (nm). A dosage of 16000 microwatt/sq.cm at 40 C for effective disinfection. A low pressure membrane process that removes dissolved organic macro molecules, viruses, pyrogen enzymes etc. This process eliminates dissolved impurities like unwanted salts and retains minerals which are essential to human body. This is the strongest oxidizer and disinfection agent which acts on broad spectrum of microbiological organisms. This pumps water through a microscopic filter that is rated for a certain size organism. The standard size rating is the micron.

Ultra filtration

Reverse Osmosis

Ozonization

Filtration

CHAPTER - V ECONOMICS OF THE PROJECT

a.

BASIS AND PRESUMPTIONS

This project has been drawn on the basis of following presumptions: 1 2 3 4 5 Working hours per shift No. of Shift/ day No. of Working days/annum Production capacity on commencement 8 1 300 40%

Construction cost of building, lease rent of land, labour charges and cost of plant machinery and equipment have been considered as per prevailing rates in the market. Cost of installation and electrification of machinery and equipment have been considered as per prevailing rates in the market. UTILITIES: Motive Power

50 KW

b.

PRODUCT(S) MIX, CAPACITY & ITS UTILISATION : Product Mix (at 100%) Unit Size
(Ltr. Bottle)

Prodn. Ratio 45% 35% 20%

Ltrs.

Bottles / Jars 7,200 2,800 160

1 2 20

7,200 5,600 3,200 16,000

c.

LAND : a. Plot size b. Location c. Rate of Land d. Cost of Plot Total Cost of Plot : : : : : 8,000 sq.fts. Mini Industrial Estate, Moran, Dibrugarh, Assam Leasehold Leasehold Leasehold

d.

BUILDING & STRUCTURES Total Covered Area Construction Cost (As per Engineers Certificate)

: : : 447.10 sq. mtrs. Rs. 16,27,605

e.

MACHINERY AND EQUIPMENT S.No. 1. I DESCRIPTION

: QTY. RATE (Indian Rs.) 7,15,000.00 1,35,000.00 3,65,000.00 25,000.00 80,000.00 1,35,000.00 9,25,000.00 AMOUNT (Indian Rs.) 7,15,000.00 1,35,000.00 3,65,000.00 50,000.00 80,000.00 1,35,000.00 9,25,000.00

Water Treatment Plant based on 1 R.O. Technology (2,000 lts/hr.) II Product water Storage Tank 1 (1000LPH) 304 III Iron removal plant 1 IV Treated Water Transfer Pump 2 (Kilosker) V U.V. 1 2A. Three stage Inner Washing & SS 1 Shrink for Outer Washing for 20 ltr Jar. 2.B.1. Fully Automatic Filling system for 1 Mineral water (200ml to 2ltr) (24 BPM ) JRMS 2.B.2. In-feed Air blower Conveyor (7 ft) & 1 Set Out-feed conveyor 24 ft Long, Inspection Screen & Collecting Table & Shrink Tunnel. 3. Inkjet Batch Coding Machine ( ALFA 1 JET) 4A. Auto PET Blowing (2 Cavity) M/c , 1 SET with Moisture Seperator, for Blowing up to 1.2 ltr @1200 BPH (JRMS) 4B. Air Compressor ( MAGNA), 20 HP, 1 Set CEMENTS 4C. Refrigerated Air Dryer 1 Set 4D. Chiller, Filter (Oil & Air) 1 SET 5. LAB as per ISI 1 Lot 6. Interconnecting S.S.-304 Pipelines & 1 Lot Fittings for entire plant. 7. CIP System 8. Installation, Commissioning & BIS 9. TOTAL Add: Packing Freight & Insurance AVAT Installation Engineers stay exps., etc. TOTAL COST :

2,65,000.00

2,65,000.00

2,35,000.00 9,65,000.00

2,35,000.00 9,65,000.00

3,80,000.00 1,90,000.00 1,40,000.00 3,45,000.00 2,35,000.00 55,000.00

3,80,000.00 1,90,000.00 1,40,000.00 3,45,000.00 2,35,000.00 55,000.00 4,25,000.00 56,40,000.00 1,12,800.00 2,00,000.00 2,97,640.00 50,000.00 63,00,440.00

: f. Other Fixed Assets : Sl.No 1 2 3 4 5 Description Cost of furniture Cost of deep bore tube well & pump for water reservoirs Electrification including D.G. Set Computers 2 nos. Delivery van Total Amount (in Rs.) 75,000.00 1,50,000.00 8,09,703.46 60,000.00 4,35,000.00 15,29,703.46

Total Fixed Cost Sl.No 1. 2. 3. 4. Description Land and building Plant and machinery Other fixed assets Margin Money for Working Capital Total Amount (in Rs.) 16,27,604.92 63,00,440.00 15,29,703.46 2,79,787.50 97,37,535.88

Finance Breakup
Sl. Particulars Total Own Contribution Bank Finance

1 2

Fixed Cost Working Capital

94,57,748.38 11,19,150.00 1,05,76,898.38

28,57,748.38 66,00,000.00 2,79,787.50 8,39,362.50

31,37,535.88 74,39,362.50