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
- 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 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
- Ultraviolet Sterilizer
- Pipes & Fittings
- Safety Switches ( Low & High )
- Bottle’s Washing / Rinsing Manual System
- Bottle’s Filling Manual System