RO Water purifier business has great future in India. If you are planning to start one, then this article is for you. Best thing about this business, low investment and high profit is there and also competition is low. Lets understand this business in detail.
Table of Contents
What is RO Water Purifier Business?
There is water shortage in most parts of city. Small business establishment to large, constantly need purified drinking water. Even families at home need purified water. This is where water purifier business steps in. Such business produce sweet and purified water and supply who ever needs it.
You must be thinking, there is water supply to offices, business establishments, apartments and individual houses, then why would any one pay for purified water!!!
And the answer is simple. Most of the time, the water which is supplied through pipeline network can be a contaminated water. On the water hand, offices, apartments and business establishments which store the supplied water in a tank are not well maintained. Thats why people are ready to pay for sweet and purified water.
Commercial RO Water Purifier Business
To start commercial RO water purifier business, you need a space where you can setup your water purifier machine. 30' X 40' space would be sufficient for the machine. Set target minimum purified water production should be 500 Litre per hour. And the plant where you want to establish should have sufficient water availability all the days of a year.
Now another important question rises? How you are going to supply the purified water? In plastic bottles, plastic water canes and water filter jars. So you need water bottle packaging machine to fill the plastic bottles. However water cane and water filter jars can be filled and sealed by your workforce.
Another important factor that is strictly dependent upon your success is TDS and minerals in the water. If TDS of your water is high, then you have to reduce it. Thanks to machine it will do the job. If the purified water lacks minerals, then minerals are available in the market, which you can add into your produced purified water.
Before you start this business, do a detailed research about actual need of purified water in your city. And also study if any competitors exist in your area. You have to plan accordingly.
Once you have the space, you have finalised the machines, you have the workforce and have studied the market, you are ready to start your own commercial RO Water Purifier Business.
Commercial RO Water Plant Business Registration
There is a law in India. If you want to supply a product that is consumable by humans, then you need approval from the Bureau of Indian Standards. For this, your company should be a registered company.
You have an idea of what Mineral Water Plant Business is about. How and where to register for a commercial water plant business is a big question. We are with you for this, you need to register yourself as a company to get the name of the water business brand. You have to register and get approval from the Bureau of Indian Standards if your product is for humans.
Requirement of License / Certificates for Commercial RO Plant Business?
Following license or certificates are required to run a commercial RO plant business in India.
Pest Control Certificate
This certificate is neccessary as proof of certificate that the space is free of insects that may cause health related issues.
Water Test Report from laboratory
This test report from laboratory confirms that the produced purified water is safe and contains required minerals for human consumption.
Pollution control Certificate
This certificate confirms that the business plant is not causing pollution.
Memorandum of Agreement
This is an agreement between parties to cooperatively work together.
Article of Association
This document contains regulations of the business plant and establishes its purpose.
RO Water Plant Cost / Investment
The cost of RO Water Plant machine which can produce 100 Litre per hour can cost Rs 40000 to Rs 60000 INR.
Apart from this, you may have to pay for
- Space Rent
- Workforce wages
- Clean and Maintenance of your plant
- Cleaning of Machines
- Cleaning of Water Pipes
- Plastic Bottle in which your water will be packed
- Plastic Jars in which your water will be packed
So apart from the machine cost, you may have to pay Rs 15000 to Rs 30000 INR each month.
Commercial RO Plant Business Profit / Margin Calculation –
One crate of water bottles contain 12 water bottles.
The current market price at which each crate is sold is 80 Rupees. (City to city it may vary).
It is assumed the production cost of each crate would be 30 to 40% of its selling price. Lets assume 40% . Then you will get 60% of profit per crate which is around 48 rupees.
If your plant produces 100 crates per day and you successfully sold in the market, then your profit will be 4800 rupees per day.
How to Grow Commercial RO Plant Business?
Establishing a Water Plant and running it is not sufficient. You have to put effort to grow your business. Following are few important tips that may help you to grow your business.
Advertisement helps to reach larger number of potential buyers in less span of time. You can take help of digital marketers in your locality. They will promote your product on Youtube, Facebook, Websites at your city level. Publish advertisement about your product in your local news papers. Hire agencies that may distribute templates of your water bottles across the city.
Never advertise only once. Advertise frequently in a year. It will help you to gain sales.
2. Distribute Free Samples
Distribution of free water bottles, can create awareness about your product and brand among people. Once they taste the quality of your water, then it is obvious, it is really good, then people would prefer your brand water bottle only. \
3. Organise Events
Events such as cricket match, debate competition, sports can attract large number of people. Once people gather at your event, they are going to notice banners of your brand which in return going to increase your sales for sure.
4. Sponsor Events
Events such as science exhibition, annual function at colleges universities or companies have huge gatherings. Sponsoring such events can help people to aware about your product.
5. Target Ceremonies
Ceremonies such as marriage ceremony, birthday ceremony, thread ceremony and any puja ceremony have receptions. People bound to drink water. Targeting such ceremonies and supplying large amount of water packets at lower price compared to market can also help you to increase your sales.
Risk Factors associated with RO Water Purifier Business
I am not trying to scare you but knowing the fact is always wise to start and proceed in business. Running a business is always full of risks. Especially, if your production is related to human consumable products then you need to triple alert all the time. A small mistake can cause heavy loss.
You have workforce to keep your water purifier machines absolutely clean. But if they fail to do their job, then the water will be polluted easily. Which can cause health risks to the person who consumes it.
During winter and rainy seasons, the water supply business sales drops down.
There is always constant evolution of competitors. Who would not want to put their money to start business like water purifier. Which may result less sale.
There are plenty thief around who may produce bogus water bottles on your brand name and sell in the market at a very low price. It not only hamper your business growth but also can cause health risks to people who have trust on your brand but are consuming bogus water bottles. This may invite legal actions against you.
I hope this article has helped you to understand about how to start a RO Water purifier business in India, investment required to start the business, how to grow and risk factors associated with this business.