Sachet
Water (Pure Water as it is popularly called in Nigeria) is one of the products
out there that is in high demand. Hundreds of millions of sachets are consumed every
day, and the demand of Pure Water supply is always on the rise as the
population keeps increasing. Go to any major city in Nigerian, you'll see how
the streets are littered with empty sachets of pure water which is the
testimony to the quantity that is consumed every day.
A
smart investor knows that the best product to deal on is the product in high demand
that automatically placed pure water production business "Investors
Choice" any time. The demand doesn't seems to go down very soon as it has
become the most credible alternative means of getting anything close to clean
drinkable water for the average Nigerian. Therefore, how do you cash in on the
demand of sachet water to make money for yourself?
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| How to Start Pure water business in Nigeria | Pictures for tutorial |
The
business of pure water production is quite simple, and here I'm going to run
down the step by step guide "How to Start Pure Water Business in
Nigeria" without much stress. In water business just like every other
business, the number one priority should be service to humanity then, the money
will come naturally. Like any other consumables, life is involved so try and
put everything in place properly. Here
are the things needed to get started:
1. Get a place
of business - You
need to acquire a property or rent a place, getting your own property and
developing it is the most desirable option as that will save you cost in the
long run.
2. Register your
business name -
The name your water products will be known for. Branding is very important in
business, so in addition to your business name, design a very professional logo
for your product because perception is the best sales man. Make your brand
stands out among others!
3. Sink a
Borehole -
The most common source of water for commercial drinking water production like
sachet water and bottled water is borehole, let there be borehole within your
premises for constant water supply to your pure water production factory.
4. Install
Overhead Tanks -
This will serves as reservoir to supply water to the distillation system; it
has to be overhead to ensure proper pressure to be able to pump down the
distillation chamber.
5. Install
Distillation System -
This could just be a micro filters and cup filters depending on your start up
capacity, but if you can afford it, then you go for more comprehensive
distillation system. Otherwise, use Purification process known as Ultra Violet
sterilization bulbs process. After distillation, you need to take your product (the
resultant water) to the laboratory for results.
6. Get NAFDAC
Approved -
NAFDAC Is the agency that supervise foods and drugs in Nigeria, you need their
approval to carry out business that involved consumable products of which water
is one of them.
7. Acquire
Automatic Sealing Machine - Automatic sealing machine cost between N400,000
to a Million Naira. Go for the ones that seals or produces about 40 sachets per
minute.
8. Employ Staffs - You will need
minimum of five persons to work in your factory for a start then increase with
time as the demand may be.
9. Distribution
Mechanism -
Buy truck for your distribution of rent but renting can be expensive and
disappointing most of the times. My recommendation is that you buy your own
truck if you can afford it at the beginning.
10. Get Power
Generation -
You know the situation of power supply in Nigeria, except if things changes
tomorrow. If not, you will need a standby power generating set, and 25KVA will
be just perfect for the job.
With
all these in place, you are good to go! For a start up and depending on what
you already have like land and other things, you may need up to five million
naira for a start up in order to get the sealing machines, nylon and other
materials, and pay for labour for about some months before it begin to yield
profits. Your cost could be higher if you are also paying for rent and hiring
trucks.
Assuming
you have only one Automatic sealing machine that produces your sachet water and
you can afford to have only one delivery van that distribute your products. one
automatic machine (at 100% utilization) Capacity: 40 sachets per minute i.e.
2,400 sachets in 1hour Which is equivalent to 120bags in 1 hour.
Let’s
conclude that; on the average, you produce 100 bags in 1hour, and assuming you
was able to work for 4hours in a day. i.e. one machine producing 400 bags of
pure water in a day. (Sincerely, an average sachet water factory in Nigeria
today produces between 700 bags to 800 bags per machine in a day) so it all
depends on you.
Still
based on our assumption of 400 bags in a day and a bag is being sold between
N70 and N80. So let’s also assume N70 per bag; 400 bags x N70 per bag = N28,
000 per day. N28, 000 x 28 working days in a month = N784, 000 per month. Wait
and see; N784, 000 x 12 months in a year, = N9, 408,000
Here are some
other reasons to invest in this business:
·
Government
has failed to provide the basic drinking water need of every household in
Nigeria. So, everyone make provision for themselves and buying pure sachet
water is one of the most reasonable options.
·
The
more the population increases, the more the need for people to drink water, and
the more the demand for the product of sachet water.
·
There
is not going to be a day, people will stop drinking water. In fact, it is one
of the most essential consumable products and the most consumed natural
resources on earth.
·
Sachet
water currently has no close or partially close substitute in Nigeria where the
majorities are poor to depend on bottled water which is more expensive.
·
One
can never run out of customers to supply to the more the producers, the more
the consumers of sachet water.
·
The
popularity of sachet water is growing on alarming rates even in towns and
villages across Nigeria.
·
At
five naira for a sachet, pure water is very cheap and affordable to buy even by
the poorest man on earth.
·
It
is a major source of revenue for the government, so the government is even
encouraging more producers.
·
There
is really no distinction between the consumers, it is widely acceptable to the
rich and the poor, and is used for events and parties.
·
Consumption
of sachet water is not restricted by any law or religious belief unlike alcohol
or some other drinking products and has no side effects.
·
The
set up requires little start-up capital compared to other factories. with five
to 10 million naira, you are go to go and the return is guaranteed.
·
There
is ready made market for the product. All you need is just produce, it is one
of the product out there that requires no much marketing to get the product
accepted as it is already accepted by nature.
·
The
payback period for the investment into the business is less than six months.
It's one business you confidently get loan to do start with 100% assurance that
the business would pay.
·
The
return on Investment (ROI) is more than 50% and it is subject to increase on
expansion of the business.
·
It
requires little or no periodical acquisition of raw materials for production;
water is a free gift of nature.
Do
you have any question? Drop your comment below!
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