Overview of Sachet and Bottle Water

Sachet and table water business remains in vogue in Nigeria. With the increasing population in the country, the government failure to give potable water and potentially, the anxiety in the general public minds concerning the sugar content in beverages makes sachet and table water the only readily available product to quench thirst.

The substantial majority of the teaming populations drink sachet and table water. Every one of us consume it, consume it, undoubtedly the overwhelming majority of individuals drink sachet and table water. This is the reason it is just one of the expanding and profitable company in Nigeria next to information technology.

The business is has now flood the country, therefore, it can be set up wherever you are irrespective of your location as much as there are human beings in your locality. To stress that the business of sachet and bottle water is profitable, remarkable organisations such as Cway, Nigerian Bottling Company, Nestle, May and Baker, and so on are into business of bottle water production. Therefore, venturing into this business is advisable as it is profitable.

The Profit Potential in Sachet and Bottle Water Business

The market price of a bag of sachet or table water depends on the location of the producer. However, in almost all the parts of Nigeria now, a bag of 20 sachet of table water is sold for not less than #150 per bag while a pack of 12 bottle is sold for #700. The factory coupled with other operations can be founded on a plot of land, where the water will would be processed and packaged.

Depending on the number of machines that you have, you can produce 100 bags of sachet water in an hour. On the average, you produce 100 bags in an hour; let us say you are able to work for 6 hours in a day. That is to say, one machine producing 600 bags of sachet water in a day. However, you can do more than this depending on the number of machines and staff that you have. Assuming you are producing 600 bags in a day and a bag is being sold between N150. Meaning that 600 x 150 = N28, 000 per day. N90, 000 x 26 working days in a month = N2, 340, 000 per month. Therefore, N2, 340, 000 x 12 months in a year, = N 28,080,000.

Steps to Start a Sachet and Bottle Water Business

The following steps must be followed in order to set up a sachet and bottle water business:

A. Business Plan One good thing about this business is that it does not really need an elaborate feasibility study as a result of continuous increase in population; this makes the demand market to always be on increase on a regular basis. The only thing needed is a business plan to enable you to spell out your goals and aspirations in this business and how they can easily be achieved over time. Business plan therefore becomes inevitable at this stage because it reveals the level of funding needed and where it is coming from.

B. Register the Business with the Corporate Affairs Commission (CAC) and get Approved by NAFDAC You must have a name for your business to make you stand out among other numerous competitors in your locality and to get this name you need to go through the CAC. In addition, businesses in food and drugs as well as drinkables must be registered with the government regulator. Similarly, according to the government policies, every business also must register with the relevant tax authority (Federal Inland Revenue or the State Internal Revenue).

C. A Befitting Place for Business (Factory Site) You must find a good place to locate your factory. The place must be conducive and also consider it is not causing environment pollution most especially noise pollution and as well as air pollution causing carbon dioxide coming out from the generator.

D. Have a Borehole and Install Storage Tanks This ensures availability of water supply at all times.

E. Get a Sealing Machine You must get at least one automatic sealing machine for sealing your products before you package it for sale. This however, depends on your scale of daily production envisaged. You may get more than one.

F. Get Packaging Materials Bundles of suitable nylon and plastic bottle materials that have your company’s name and address printed on it must be procured.

G. Recruit Workers You must have those who are ready to work for you on ground. Those that are needed include machine operators, packagers, cleaner, driver, sale reps, security personnel and you can serve a supervisor. This will guarantee that the each position is well manned.

H. Generator Due to epileptic power supply in the country, it is therefore advisable to get a generator set to power the operations.

I. Get a Vehicle for Distribution There must be a vehicle that will help in carrying the distributing the produced bottle and sachet water to various customers.

J. Reach Out Get in touch instantly with sellers who are most likely to sell the water. Constantly establish their credit worthiness before you grant credit, or else they can make ship you out of the business.

Overview of The Template

This excel template gives every financial details and comprehensive projections into starting a small-medium sachet and bottled water business in Nigeria.

All analysis and figures used in the template are real financial projections and potray the current price and cost analysis in the current economy.

Features

1. Comprehensive Profit and Loss Projection.
2. Sensitivity Analysis.
3. Pre-Operating Equipment Requirements.
4. Operating Expense List.
5. Loan Repayment Plan.
6. Direct Material Cost.
7. Proposed Pricing.
8. Cost Forecast.
9. Sales Forecast.
10. Cash Flow Statement.
11. Viability Analysis.

Use Scenarios

This excel template is most suitable for the following:

1. Promoters of existing and New Start-up Businesses that need funding in form of grants,loans,partnerships etc. from governement agencies and venture capitalists.
2. Business and Financial Analysts working on viability and feasibility of a sachet and bottled water business in Nigeria.
3. Business Administration and Entrepreneurship students who need a comprehensive financial plan for a Business Plan.
4. Investors and Venture Capitalist who need financial analysis of the sachet and bottled water business for informed decision making.
5. Entrepreneurs who need expansion ideas for their businesses.