Setting up and running a mineral water plant in Kolkata is an attractive business venture considering the growing demand for safe drinking water.
However, this requires significant planning and investment. Here is a detailed cost analysis to guide you through the financial aspects of this project.
Initial Setup Costs
- Land and Building:
- Land: Acquiring land in Kolkata can be a significant expense. Depending on the location, the price can vary from ₹ 10,000 to ₹ 50,000 per acre.
- Construction: Building a facility that includes manufacturing facilities, warehouse and office space can cost around ₹ 25-50 lakhs depending on the size and specifications.
- Machinery and Equipment:
- Water Treatment Plant: This includes filtration, UV sterilization, reverse osmosis (RO) systems and other treatment equipment. The cost can vary from ₹ 15 to ₹ 30,000.
- Bottling machines: Automatic bottling lines that include washing, filling and capping machines can cost 10-20 lakhs.
- Quality control equipment: Testing and quality control equipment costing around ₹ 2-5 lakhs is required to ensure compliance with water safety standards.
- License and Legal Fees:
Obtaining the necessary licenses and permits from local authorities for mineral water plant in Kolkata can cost around ₹ 1-2 lakhs. This includes BIS certification, FSSAI registration and Pollution Control Board approvals.
- Initial Working Capital:
The initial cost of raw materials, packaging, marketing and personnel may be ₹ 5-10 lakhs.
Recurring operating costs
Raw material:
- Water source: If there is an independent well, the costs are minimal. But if sourced from city stocks, it could be ₹ 1-2 per liter.
- Packaging: PET bottles, labels, caps and boxes. It can cost around ₹ 5-7 per liter.
Utilities:
- Electricity: There may be monthly electricity bills of ₹ 1-2 lakhs for the use of machinery and maintenance of the facility.
- Water: Water bills, if sourced by the municipality, can add another ₹ 50,000 to ₹ 1 lakh per month.
- Manpower:
Skilled and unskilled labor including factory operators, quality control staff and administrative staff can cost around ₹ 3-5 lakh per month.
- Maintenance and Repairs:
Regular maintenance of machinery and equipment can cost around ₹ 50,000 to ₹ 1 lakh per month.
- Marketing and Distribution:
Building a brand and distributing a product involves significant costs. Monthly expenses can vary from ₹ 2 lakh to ₹ 5 lakh depending on the scale of operations and marketing strategies.
Total Cost Cost
Initial Setup Cost:
- Land and Building: ₹ 35 lakh – ₹ 1 crore
- Machinery and Equipment: ₹ 27 lakh – ₹ 55 lakh
- License and Legal Fees: ₹ 1 lakh 2 lakhs
- Initial Working Capital: ₹ 5 Lakhs – 10 Lakhs
- Total Investment: ₹ 68 Lakhs – ₹ 1.67 Crores
Monthly Operating Expenses:
- Raw Material: ₹ 6 Lakhs – 3 Lakhs: 5 Lakhs. lakhs
- Labor : ₹ 3 lakhs – ₹ 5 lakhs
- Maintenance : ₹ 50,000 – ₹ 1 lakh
- Marketing & Distribution : ₹ 2 lakhs – ₹ 1000 Operations : ₹ 2000 lakhs of mineral plant requires 3 lakhs from ₹ upwards. initial investment and current operating expenses.
However, as the demand for bottled water increases, especially in urban areas, the potential for high yields is significant.
Proper planning, effective management and strategic marketing are key to the success and profitability of your mineral water business in Kolkata.
For mineral water plant in Kolkata contact with Priti International. Contact now.