How to set up a Mineral Water Plant in India

With the reduction of purified natural water, the need for setting up a mineral water plant in India is increasing every year. Therefore, people who intend to set up a Mineral Water Plant is assuredly going to garner a huge income if he/she makes an insightful approach and has a robust business plan. Along with, they will require an investment of Rs. 15-20 lakhs for a small plant while up to Rs. 75 lakhs and more for a big plant.

But it is often observed that people are often confused and lack the knowledge of licenses required for starting this particular business and ultimately end up with a failure. Therefore, to ensure you don’t lack anything, we have designed this article in a way to provide you with the most crucial aspects of starting a mineral water plant in India. Hence, we want you to continue to the end so that you don’t miss any significant details. Let’s understand what mineral water plant actually means.

Current and Future Overview of the water plant market

• According to the latest study, the market size of water treatment [1] technology was estimated to be at $ 145,082 million.
• However, it is anticipated to rise gradually and reach $ 192,715 million by 2022. Moreover, it is expected to expand at a CAGR (Compound Annual Growth) of 4.1% over the forecast period.

Mineral Water Plant and its scope in India

A mineral water plant is typically a mineral water manufacturing unit which ensures the quality of water and supplies it to the consumers. Generally, the plant is involved in purifying raw water, bottling them and labelling the bottled water.

If we talk about the scope of the water plant treatment in India, the country has experienced a 30-40% hike in revenue in the last few years, and it is still expected to increase a lot more. Therefore, starting a water treatment plant or mineral water plant in India can be highly fruitful.

Guidelines for starting a mineral water plant in India

The idea of starting a water plant is indeed appraisable, but you should know how to start and proceed with what. The water plant demands a considerable investment as well as a lot of efforts for generating better ROI (return-on-investment). Apart from this, you need certain licenses and permits to carry on the business without any complication from the legal side. Therefore, we have brought you a few guidelines that you can consider for your mineral water plant. They are as follows:

Obtain all the necessary documents and licenses

The most notable aspect of starting any business is to prove that it is legal in every dimension. And for the same, you are required to obtain certain mandatory licenses so that you can continue your work smoothly and without any legal complications. Apart from legal terms, acquiring licenses has also proved to attract customers and gain their faith towards the brand. Therefore, before you begin the operation, procure all the permits essential for starting the business such as:

• Company/ business incorporation

First of all, you need to decide what kind of business entity you wish to run. You can choose from the options given below:

1. Private limited company;
2. Public limited company;
3. Limited liability partnership (LLP);
4. Partnership firm;
5. One person company; and
6. Sole proprietorship.

Once you have decided what business entity you would like to proceed with, we advise you to register your company as per the suitable business entity. Suppose, if you have chosen to operate as a private limited company, then as per the provisions of Companies Act, 2013, you need to register your company with the Ministry of Corporate Affairs (MCAs). In the case, you intend to start your business as an LLP, then incorporate it under the provisions of the Limited Liability Partnership Act, 2008.

• FSSAI license

Every food manufacturer, distributor, importer and exporter, retailer, wholesaler, etc. are required to obtain food or FSSAI license mandatorily. One can procure the license from the food department of the particular region or FSSAI (Food Safety and Standard Authority of India). Now, since you’re setting up a water plant, you fall into the category of a manufacturer. Hence, FSSAI license is one the prerequisites of starting a water plant in India. In cases, you run the business without the food license; you shall be liable for punishment as well as hefty penalties.

• Small Scale Industry (SSI) Registration

SSI registration is basically for industries which are running at a small scale. Therefore, in order to avail several benefits of certain government subsidies, you should surely apply for SSI registration. However, SSI license is not mandatory to obtain; it is always advisable.

• BIS registration certificate

BIS (Bureau of Indian Standards) is a governing body which is concerned with the quality inspection of the items or products manufactured in India. The organization is established at an international level and issues the BIS registration certificate to the applicant once it is contented with the inspection and quality check of the product. Hence, if you are running a water plant, it is mandatory to apply for a license from BIS.

• Test reports of raw and processed water

After you have obtained BIS certification, you are also supposed to generate a report on raw and processed water from BIS. For the same, you can visit the LWTL (Local Water Testing Laboratory) and get your water tested.

• Pollution control certificate

Irrespective of where you are operating your business, you require a pollution control certification from the concerned state or local government body. This is to ensure that your business anyhow doesn’t pollute or harm the environment. Therefore, again before you begin, obtain the pollution control certification from the Pollution Control Board (PCB) of your state or area.

• Trademark registration

Although trademark registration is not mandatory, it is always recommended to get your trademark registered. Why? It is because of the reason that trademark registration protects the identity of the business. Nobody can ever use the same name as your business’ in the same or similar business class without your approval. If you find somebody stealing your business identity, you hold the full authority to sue that person. Hence, we advise you to get the trademark registration under the appropriate trademark class, as soon as you start your business.

Apart from the above license, you will also require to obtain a few licenses as follows:

• Microbiologist – Degree and Medical Certificate;
• Chemist – Degree and Medical Certificate;
• Medical certificate for workers-4;
• NOC (No-Objection certificate) from Gram Panchayat, if required.

Learn how to start catering business in India.

Calculate the total cost investment the plant might require

Even before you would have thought about the profitability, the first question that might have appeared in your mind would be, ‘What’s the total cost of setting up the water plant?‘ And, it’s quite apparent to appear. The total cost investment your plant may require isn’t just the cost of water purifier or water filter, but it consists a lot more. You need to calculate the cost of every single entity essential for starting a water plant as follows:

• Water purifier or filter;
• Cost of utilities;
• Government license expenditures;
• Chemicals or additives;
• Construction and furnishing of/within the plant;
• Utilities such as transformers, generators, cooling towers, compressors, etc.;
• Water tanks or reservoirs, etc.

Finalize the land requirement for setting up the plant

Selecting a suitable location or land is another crucial aspect of setting up a new mineral water plant. There should be distinct provisions for both productions as well as the office area. While finalizing the location, keep the following into your accounts:

• The preferred location should be at the place where water resource is readily available;
• It should be nearby the market area;
• Ensure that there’s a continuous power supply in the area; and
• Last but not least, the chosen location should have road accessibility.

Identify the water source and place for water storage

It is one of the most crucial aspects of setting up a water plant in India. Hopefully, we assume, you know that mineral water plants generally use water from natural resources such as mountain water, spring water, etc. The reason why natural resources are considered the best is that water from such sources contains several minerals such as calcium, magnesium, iron, etc. which are beneficial for human consumption.

After you have identified the resource, prepare a suitable place for storing the raw water. Make sure that the chosen area is big enough to store a large amount of water.

Get the required machinery and other types of equipment

Apparently, machinery and other essential accessories are one of the needful requirements for starting a mineral water plant. Those who have enough budgets can easily buy machines and accessories. However, those with a low budget can take such stuff on a lease.  Below we have enlisted a few items that you can consider for setting up your water plant:

• Water treatment filters and machine;
• Water sterilizers;
• Generator set;
• Water dispensers and water filling machines;
• Enough water storage tanks;
• Conveyors and sealers;
• Bottle loaders;
• Trucks for bottle distribution.

Hire the right kind of workforce

Every business demands a team effort to make it a success. Therefore, the very first thing you require to start a business is a team consisting of the right kind of workforce. Hire staffs who could prove efficient and deliver sufficient output in your plant.

Find adequate bottle suppliers

Since you’re going to set up a water plant, you will undoubtedly supply water to customers. Thus, you need to put efforts into finding a fair amount of water suppliers as per your need. Additionally, you need to ensure them they must be readily available at any time of the day/night you require them.

Final Words

If we consider the current situation of quality of water supplied, the idea of setting up a mineral plant in India may prove quite beneficial for the start-up. To ensure your business touches the height soon, you must make a strategic approach. Obtain all essential documents required, be clear about the investment, and hire the best and reliable resources.

Hence, if you have made up your mind for starting a mineral water plant of your own, then don’t delay and contact Swarit Advisors. Our experts will help in setting up your plant in every legal way possible.