Pure water business in Nigeria is one of the most profitable ventures because pure water is a basic daily need for everyone. Over the past 12 years, I have helped entrepreneurs start pure water business through comprehensive articles like the one you are about to read here, and most importantly through preparation of a pure water business plan to help them setup and manage their business efficiently.
Why Pure Water Business In Nigeria is Profitable
The market for packaged pure water has been growing rapidly in Nigeria since the 1990s, increasing exponentially in the last two decades owing to the lack of safe public water supply, and declining consumer confidence in the safety and quality of municipal water supplies.
Even though Nigeria has abundant water supply, its four sources which are rivers, rain, well, and tap water are far from being used as potable drinking water. Factory-purified and packaged pure water is the way Nigerians get their daily drinking water free from impurities and diseases.
This article gives a guide for starting the pure water packaging and distribution business in Nigeria providing you with the costs of the materials and breakdown of resources involved. A comprehensive bank-standard business plan of the sachet water, bottled water, and gallon water business will also be made available to you if you request through our WhatsApp Business contact at the end of this article.
If you wish to invest in pure water packaging business, especially by reading this guide and requesting for the business plan, I can assure you of a good return of investment within your first five years of doing the business and applying good marketing strategy as recommended in the business plan.
Startup Capital Needed for Pure Water Business in Nigeria
The startup cost for a profitable pure water business in Nigeria is a minimum ₦10 million (ten million Naira) for a sachet water factory in a leased factory, to as high as hundreds of millions of Naira for a pure water factory for sachet water, bottled water, and dispenser gallon water.
The startup scale also determines the startup cost for setting up. A small scale factory requires single or slower-rate packaging machine, but a large scale factory will require multiples and or higher rate packaging machines. The working mode of the pure water machines also range from manual to semi-automatic to fully automatic and the price for these options vary greatly.
From the foregoing, it is apparent that we cannot for sure state how much your pure water business setup will cost without helping you carry out a property feasibility analysis and coming up with a business plan.
What You Need To Start Pure Water Business in Nigeria
As with any business, startup scale varies from one entrepreneur to the other, but for the purpose of this guide, we can broadly identify three startup scales: small scale, medium scale, and large scale respectively.
Here is the complete list of what is needed to start a pure water business in Nigeria. Because preference and startup scale differs, the prices and costs of these requirements will be unique to each entrepreneur or project. So, whatever prices you get in this article should be seen as estimates to guide you.
Business Plan
This article is simply a guide that summarizes all you need to start pure water business in Nigeria. For proper analysis, projections and planning, you need a well-written pure water business plan. A well-written business plan shows you the estimated startup requirement cost, financial statement projections (cashflow, income statement (profit and loss), balance sheet), as well as feasibility analysis projections (payback period, break even analysis).
A detailed business plan will also be tailored to your specific startup budget and be custom-made with market research and demographic analysis for your business location. We offer well-written pure water business plan as part of our turnkey solution for starting pure water business, so, you need not worry about the stress of researching and writing your business plan.
The pure water business plan can be used for obtaining business loans, securing investors and partners funding and for other analytical purposes, and may be updated as the business grows to better outline and guide future operations. So, it is a very important document for the business.
Pure Water Factory
Your pure water business need to be situated in a factory that is far from a refuse dump, sewer system, chemical industries or any source of water contaminants. The factory can be as small as one 3-bed flat in its own fenced compound of one plot (minimum) or as big as you want especially if it will include bottling plants and or large scale packaging.
The factory may be rented, leased, or if can afford, built from scratch to your choice design and finishing. Whichever you choose to go for must be far from contaminant sources, and the sewage within the factory must be sited in such a way as not to pose a risk to the bore-hole water source.
We offer NAFDAC consultancy that takes care of all these complexities and ensures that you meet all the NAFDAC requirements, and our job is only finished once NAFDAC approves and issues you the licence and production starts in your factory. You must go out there and ask for the prices of lands in the location you wish to setup your pure water production plant. To construct a bungalow that will serve as your factory together with fencing, finishing and furnishing, digging of borehole, and interlocking the compound.
Water Treatment Machines
Distillation is the single most effective method of water purification for pure water production and can be used on all types of incoming water. Unlike other treatment methods such as carbon filters and reverse osmosis, distillation systems are effective on virtually all contaminants and are not dependent on water pressure, water temperature, pH, or chlorine and can even be used on water containing bacteria and parasites and still produce safe, 99.9% pure water.
Distilled water is water that has been heated to the boiling point so that impurities are separated from the water, which itself becomes vapor or steam. Steam is then condensed back into pure liquid form. The impurities remain as residue and are removed.
Pure Water Distillation Systems remove waterborne biological contaminants such as bacteria, viruses, organic and inorganic chemicals, heavy metals, volatile gases, cysts and other contaminants. Distilled water contains virtually no solids, minerals or trace elements. It is clean, natural and healthy. Steam distilled water is the standard by which all other waters are measured.
Reverse Osmosis Distillation System
Nevertheless, Reverse Osmosis is one of the most widely used and easier to install. Reverse Osmosis also produces water with highest level of purity and very perfect for your pure water production if you can afford it.
Water Packaging Machines
Depending on the type of packaging (sachet or bottled), your finished pure water products are produced by specialized water packaging machines. The packaging machines are either manual, semi-automatic or fully automatic for a bottling machine, but the sachet water form-fill-and-seal machine is preferably in full automatic mode.
A fully automatic production plant is best because it reduces the possibility of contamination from human involvement and also reduces staffing requirement, but, a semi-automatic machine can be sought after if your budget cannot cater for the automatic machine.
The smallest pure water business can start with one water packaging machine, but if you are planning for a very high volume production, you can add as much as can be supported by the size of your treatment system.
The two popular form-fill-and-seal machine brands are Koyo and Dingli. This machine is high precision packing machine and the one of most advanced liquid compound packaging machine available, which stands at the size of a double door refrigerator, three side sealing and intermittent. Controlled by microprocessor and automatic photocell, it can automatically complete sachet pouch making, filling, sealing, printing, cutting and counting.
It works automatically and does it’s work efficiently and can take care of your entire production on daily basis.
Delivery Trucks
Your next big budget acquisition after the sealing machine is a supply truck. Do not be economical in your budget when it comes to supply truck. You know the condition of Nigerian roads and in most cases, you will be going deep into the developing areas to supply. There is nothing as bad as buying a truck that breaks down so frequent, it can kill your business.
A decent European used truck with good history is what you need. N3 million can get you a very good Mitsubishi Canter.
Power Generator
Power generator is a must-have for your pure water business in Nigeria due to the epileptic nature of power supply. A diesel-powered generator can serve as a backup power whenever the power grid fails to supply electricity to your factory.
The size of power generator (in KVA) for your pure water business will be determined by the sum total of the power ratings of all the machines, equipment, and appliances in your factory that require electricity supply and the load level you want to run your generator on.
We can help you figure that out with our all-in-one turnkey water business consultancy that offers all you need to start a profitable pure water business.
Factory Workers
This is one of the most sensitive aspect of your business. Human resources is the lifeblood that drives the whole mechanism of your production. Be careful in your selection. Below are the personals your company needs.
One operator
Three packagers
One Cleaner
One Driver and one attending Loader
One Marketer
Two Security men
A Manager who may double as cashier unless you can afford the extra personnel.
Get NAFDAC Approval
Finally you have come to this level, your final step before production. How is this done?
Start by going to the NAFDAC office to obtain and fill the relevant forms. The process will take you as much as three months and up to six months before you get the certificate.
The best thing you need to do now is to get the Application Requirement. Read it and start following the procedures as outline. You are not going to produce nor sell until your production is approved.
I must tell you that NAFDAC Approval is the most difficult of it all and take much times. N30,000 is the processing fee for sachet pure water.
These are what your entire production line involves. At this point, I want to stop and let’s carry on the conversation through commenting. Drop your comments and let’s take it from there.
Turnkey Solution for Starting Pure Water Business In Nigeria
If you want to start the pure water business wherever you like in Nigeria, our consulting firm can help you avoid costly mistakes and careless expenditures by providing you with a comprehensive hands-free Pure Water Factory Setup service which includes:
- Writing a Custom Business Plan with your budget and requirements.
- NAFDAC Registration and Brand Registration for your Pure Water Business.
- Pure Water Factory Layout Design.
- Advisory service on marketing your pure water business in Nigeria.
To subscribe for any or all of our Water Factory setup service, kindly send us a message on WhatsApp or through phone call by clicking the appropriate button below: