This is a simplified feasibility study on bottled water production in Nigeria. So, briefly I’ll be looking at cost estimations on successful bottled water production, the productivity modules, land acquisition and business name registration, general installation and renovation work, bottling and the water treatment, plant setup, storage tank setup and acquisition, plus other miscellaneous like delivery etc.
I understand that bottled water production is not a very complex business to do and does not require extremely high startup capital. This is a very lucrative business to embark upon due to the high demand for bottled water in the country at events, in offices, and at home.
To successfully produce bottled water in Nigeria today, what governs the whole business are many. Let’s look at them briefly below.
Acquire Suitable Land
You do not need a large plot of land to setup a good bottled water factory in Nigeria. A plot of land in Nigeria today is not cheap and depending on location, you can get land for between N500,000 and five million naira. So, why you are planning to start a bottled water factory in the country, you should take into consideration the cost of land in that location as different locations price land differently
Before you go into bottled water production in the country, it is lawful for you to get registered and censored by the necessary government officials and regulators especially the standards organization of Nigeria and NAFDAC. These agencies will test, inspect and ensure that your bottled water is certified fit for public consumption before you can go into mass production.
Get Your Business Registered with The Appropriate Quarters
To register your business with them cost about N50,000 minus other charges and hidden costs and to get your business enlisted by the corporate affairs commission of Nigeria (CAC) costs about N10,000. In order for you to register this business legitimately with government you need between N50,000 to N100,000 is required and of course this depends on the kind of company that you want to set up; public liability, a private firm or a limited liability company (LLC) and also the size of the company would determine your registration and setup fee.
Construction and Renovation of the Plant
It is industry best practices to ensure that facilities for bottled water production are kept clean and hygienic always. it is required of you to get all the walls which led to the main production unit of your bottled water factory sealed
If you are starting a medium-scale bottled water factory, this can be run from an apartment of a building. You will need to do some plumbing and electrical wiring works for alternative power sources such as generator or solar electricity and make some alterations to the building which you will be using to operate your business. It is estimated that its total renovation and setup fee of at least N500,000 should be enough to carry this out successfully.
Install Your Bottling Machine and Other Necessary Equipment.
What follows this is to procure your bottling and water treatment plants. The bottling machine will produce your water bottles and will also be used for rinsing, filling, capping and packaging of the bottled water as well as labelling. It has been estimated that an average bottling machine has the capacity of producing between 500 and 5000 litres of bottled water and consuming electricity of about 18.6 kilowatts. This bottling machine cost at least N17m including shipping cost and miscellaneous costs and requires a room with dimensions of 18m long and 5m wide to accommodate it.
Get Water Storage Tanks
Having put these in place the next thing is to get storage tank where you will store the water. it is recommended that you get a medium to high capacity storage tank of not less than 5000 litres. You can get a GeePee tank for this purpose. Most of the storage tanks can be customized to your taste and size or you can also procure already made GeePee tanks from the open market. You can decide to go for plastic storage tanks or setup metallic storage tanks which should be made of non-corrosive metal.
Efficient Marketing Is Central To Bottled Water Production
Another thing is for you to carry out efficient marketing of your bottled water after production. It is necessary for you to get a good and well-functioning delivery van for this purpose. This will convey the bottled water from place to place during marketing. Most times, secondhand Chevrolet vans are used for this purpose which you could get go for at least N1 million.
Hygiene In The Bottled Water Factory
When it comes to bottled water production, it is necessary that a high level of hygiene is accorded to its production, packaging and distribution. As such, water that is fit for human and industrial consumption should be free of foreign microbes and bacteria, toxins and wastes. As such, a water factory or bottled water factory should be located far from waste sites and dustbins, dumping grounds etc.
Staff working in the bottled water company should be made to adhere strictly to hygienic lifestyles especially while at work. Their wears and manner of operation should be such that foreign bodies and contaminants such as hair do not get introduced into the bottled water. To achieved this, it is recommended that good in-house trainings be provided always in and around the factory, in compliance with industry best practices and regulations.
So, that has been it on a feasibility study on bottled water production in Nigeria. It has been simplified for easy understanding by anyone interested in bottled water production in the country. If you need anything extra which has not been discussed here, simply drop a comment below and we will take it up. Also, note that the prices cited here are subject to change depending on your location and production scale.