Pakistan

Requirements to Start Mineral Water Processing Plant in Pakistan

The process of mineral or bottled water manufacturing plant consist of collecting water from a suitable source, filtration, demoralization, blending with salts, aeration, testing for standards conformation, bottling and then packaging. This article focuses on Ground / Boring Water as source of water. Initially, we recommend resistivity or geological survey at particular plant location, which consists of four tests and will cost around Rs. 50,000 to 90,000. This resistivity survey report will identify the TDS (Total Dissolved Solids), time period for the availability of boring water at particular depth and composition of chemical and microbiological components from Ground / Boring water which will be more helpful for Capital Cost estimates. Boring depth as recommended by technical experts, must be at least 300 ft, which will cost around Rs. 300,000.

Before 2010 much of the mineral water was being imported. But today the demand is being met by local producers / suppliers. According to PSQCA, there are around 2851 registered / licensed brands available in the market thus showing a substantial growth by the industry. Other than registered brands, it is estimated that there are hundreds of unregistered brands being supplied in the market.

Mineral water processing plant is proposed to be located in any densely populated city such as Karachi, Lahore, Rawalpindi, Peshawar, Hyderabad, Multan or Quetta. These cities presents an opportunity for establishment of mineral water processing due to high population, less availability of clean drinking water in majority of areas and awareness of hygiene with respect to drinking water. This business can also be undertaken in all small 2nd tier towns, in addition to suburban towns of large cities.

This proposed pre-feasibility study presents an investment opportunity for establishing a water treatment plant with a capacity of 5,000 gallons per day. The proposed product line will consist of 19 liters bottles. Total installed production capacity of purified bottled water is 109,421 bottles per year, where initial capacity utilization will be 50%. The total project cost for setting up a mineral water processing unit or an RO plant in Pakistan is estimated at Rs. 3.022 million out of which Rs. 2.317 million is capital cost and Rs. 0.705 million is working capital. The project is proposed to be financed through 50% debt and 50% equity. The NPV is projected around Rs. 3.753 million, with an IRR of 41% and a payback period of 3.08 years. The legal business status of this project is proposed as a ‘Sole Proprietorship’.

Factors for Success of Water Treatment Plant (Processing Unit) in Pakistan

Following factors play a critical role in the successful execution of the business operations and impact on profitability of RO plant business in Pakistan:

  • Location with respect to source of water.
  • Compliance with standards & obtaining license from (PSQCA) Pakistan Standards & Quality Control Authority.
  • Maintenance of quality and hygiene standards.
  • Efficient marketing & bulk supply to wholesalers.
  • Reasonable & competitive prices

Technology: Most of the water purification plants being installed in the country are Reverse Osmosis based. Government also recommends RO based technology. This Pre-feasibility study is based on Reverse Osmosis technology. Most of the machinery is imported from China, Taiwan, Italy and Germany along with some local components.

Location: Water treatment plant or the processing unit can be set-up in any major city with significant population such as Karachi, Hyderabad, Lahore, Rawalpindi, Islamabad, Multan, Peshawar and Quetta. This business can also be done in all small second tier towns in addition to suburban towns of large cities. The market for Mineral Water has been showing a mushroom growth trend over the last few years due to the increasing population in a country, less availability of clean drinking water in majority of areas and awareness of hygiene with respect to drinking water. The demand of clean-fresh water is increasing year after year.

Product: Pakistan’s bottled water market comprises of two main segments i.e. retail market and bulk market. The retail market consists of 0.5 liter, 1.5 liters, 3.1 liters 5.0 liters, 6.0 liters, 16 liters and 19 liters capacity bottles, whereas the bulk market consists of home and office delivering in 2, 3 and 5 gallon cans. But for this particular Feasibility proposed product line will be consist of 19 litter’s bottles.

Target Market: The target markets for Bottled / Mineral Water consist of Households, Hotel Industry, Hospitals, Offices, Homes, Educational
Institutions, Commercial Markets and Hygiene conscious people. Moreover the Bottled / Mineral Water have been emerging as a daily preference of Upper, Middle & Lower Middle class due to unavailability of clean / pure drinking water. Pakistan has a domestic market of above 185 million consumers with growing income & changing consumption habits.

Employment Generation: The proposed project will provide direct employment to 05 peoples. Financial analysis shows the unit will be profitable
from the very first year of operation.

Procedure of Mineral Water Processing in Pakistan

  • The first step for setting up a Water Purification Plant is the analysis of source water.
  • After the chemical analysis, the specifications of the purification plant are set. In purification plant, source water is stored into feed water tank and then passes through the sand filter for preliminary water filtration.
  • In next stage, water passes through the dosing pump-I, where chlorine is added to kill the germs in water.
  • After the chlorination, water passes through carbon filter. It helps in maintenance of proper odor and taste of water. It also removes chlorine
    from water.
  • Furthermore, water passes through dosing pump-II, where Sodium Meta Bi-sulfate is added. It helps in de-chlorination of water.
  • Water is filtered next and passes through dosing pump-III, where Antiscalant is added. It prevents scaling of membrane from Calcium, Magnesium and Biological growth.
  • Water, then passes through Reverse Osmosis module. This stage of the process makes water clear from all the contamination and minute particles.
  • In next step, water passes through dosing pump-IV, where Minerals are added for taste development. After this stage, water undergoes Ultra Violet treatment to avoid any contamination from bacteria and other microorganisms.
  • At last stage, water passes through automatic washing, filling and capping plant. Here water is filled into bottles.

After filling, bottles are taken into the warehouse or supplied to the retailers.

Space Requirements for Water Processing Plant in Pakistan

A total of 1,600 square feet area is required to start this business. Space for the processing unit has been calculated on the basis of space required for factory area, store, management building and open ground. However, the unit’s operating in the industry do not follow any set pattern.

Machinery Requirements for Water processing Plant in Pakistan

This Pre-feasibility study proposes 1 Reverse Osmosis plant, with a capacity to purified 5,000 gallons per day of water. This Reverse Osmosis plant is assembled locally with some imported components. These components can be Chinese, German, and Taiwanese & Italian with respect to the capital expenditure budget. Details of the machinery & equipment’s are as following:

  • Reverse Osmosis Water Purification Plant
  • Feed Pump
  • Multimedia Filter
  • Carbon Filter
  • Antiscalant Dosing Pump
  • Micron Cartridge Filter
  • High Pressure Pump
  • Membrane
  • Membrane Housing
  • Remineralization (Mineral Dosing)
  • Product Water Storage Tank
  • Transfer / Filling Pump
  • Pressure Gauges
  • Flow Meter
  • Electric Control Panel
  • Membrane’s Cleaning / Flushing System
  • TDS Meter
  • Ozonator
  • Ultraviolet Sterilizer
  • Frame
  • Pipes & Fittings
  • Safety Switches ( Low & High )
  • Bottle’s Washing / Rinsing Manual System
  • Bottle’s Filling Manual System

Investment Required for Water Processing Plant in Pakistan

The total project cost for setting up a mineral water processing unit or an RO plant in Pakistan is estimated at Rs. 3.022 million. The capacity utilization during year one is worked out at 50% with 5 % increase in subsequent years up to the maximum capacity utilization of 90%. A detailed financial model has been developed to analyze the commercial viability of the Mineral Water Processing Unit. Various cost and revenue related assumptions along with the analysis are outlined in this section. The projected income statement, cash flow statement and balance sheet can be studied in the pre-feasibility study of water processing plant in Pakistan by SMEDA

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27 Comments

  1. O want to start the business of water filtration in Islamabad. I have space and capital of Rs . 2 Million. I need suggestions …
    Thanx

  2. Salam bros I want to start mineral water setup in peshawar please help me in purchase of machinery and starting the business

  3. By reading this article my most of the point are clear but still need some clarity on some points which need to be addressed by the relevant person, please can u suggest to whom i met and clear my points because i need to open this asap because me & my friend are already digging and providing the water in Parachinar but we want to set a proper system for it & supply it all over KPK & Punjab.

  4. Aslam o alaikum sir,
    i am Ph.D scholar in National center of Excellence in Analytical chemistry University of Sindh Jamshoro and doing current research on environmental field,i checked river water of this area,the physical parameter are good just need to good filter plant to compare with standard, but this water contain small amount of dust for that i got positive idea to open water plant with good quality of water and its cost will be too low, i just want to provide safe water to every one of this area. as we know for RO plant we need licence is there any requirement for filter water, plz help me in this matter..
    waiting for your positive response..

  5. ہمارے پاس پانی میں استعمال کئے جانیوالے تمام منرلز جن میں
    Calcium Chloride
    Magnisium Sulfate
    Magnisium Chloride
    Sodeium di Hydrogen Carbonat
    Potasium
    یہ تمام منرلز MERCK (GERMANY) کے دستیاب ہیں
    ہم MERCK کمپنی کے ڈسٹری بیوٹرز ہیں
    رابطہ:- 3736113۔0331/ 2348841-0321-
    021-34142348-9

    1. i have recently start drinking water for plant 19 and have plan to 1.5 liter and 600ml.

      i want to standardized my water quality Such PH to alkaline Side 9~10 and taste of water with using merck with such parameter setting.
      advise for

      Thanks

  6. Asalam o Alaikum
    I want to start a Soda Water Bottle in D.G.Khan. . I want to purchase a purification water plant . . anyone who know this water purify plant then kindly aware and inform me
    thanks
    Best Regards : Habib

  7. Sir I want to start a buisness in quetta at my own property and I want to know about the requirements of cash how many cash I would invest to the buisness of water purifying plant
    I am waiting for your answer sir

  8. i want to start this business , i have a space in residential area malir, please advise me. about budget and all and best service provider in karachi

      1. I want to this bussiness i have a space in indeatriel area,residental area, commercial,local,road project in karachi pakistan please advise me about budget and all and best servise provide in karachi.

      1. Salam
        I am in Saudi Arabia and have intentions to return home in a couple of years. I have planned to set up RO water business and have started collecting info for this. I would like you to guide me through all the set up procedures, cost and other related useful info. Waiting to hear from you.
        Jazak Allah Khair

  9. this website provides sufficient knowledge to start a new business. it really encourage me to have my own.

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