This article will reflect on the cost of starting sachet water and bottle water factory in Nigeria.
Clean and hygienic water fit for consumption and drinking still elude many homes and persons in Nigeria.
This is one of the reasons why the business of production of pure water and bottle water hygienic for drinking is a lucrative and fast moving one in Nigeria.
Moreso, nylon packaged water popularly known as pure water in Nigeria is one of the most popular packaged drinking water.
This can be attributed largely to its cost and easy availability at almost all places.
Many people have ventured into the business of production of pure water and bottle water and the opportunity in the business is still very much viable as the demand cannot be limited.
Most pure water are packaged in 50cl or 60cl branded nylon sachet. This post will give an estimate cost of starting pure water factory as well as bottle water plant in Nigeria.
How Much Does It Cost to Set Up Pure Water Factory?
We took a survey of some sachet water factories in and around Lagos Nigeria. With a view of obtaining how much it will cost to start pure water factory in Nigeria and the findings were quite revealing.
From our findings, the cost of starting pure water business in Nigeria is relative based on certain factors of production such as land and factory building.
For potential investors in pure water business who have inherited land and building to be used for production, their cost will be minimal unlike those who will acquire land and construct production and administration building.
Also our findings reaveled that it will cost an estimate of N20,000,000 to set up pure water factory for investors without prior land and production building.
While potential investors with available land and production building can set up with an estimate cost of N13,000,000.
It was also ascertained that this cost is on a very minimal level of starting up sachet water company in Nigeria.
This is because some pure water production set up especially in a very big capacity can gulf an estimate of between N20,000,000 to N30,000,000.
Here is breakdown of cost of setting up pure water factory in Nigeria.
Land Acquisition & Factory Building : N6million – N8million
This is the first and foremost consideration when you want to set up a pure water making factory in Nigeria.
The factory can be sites in a new layout where land acquisition can be cheaper for investors buying new land.
However, access road and electricity should be considered in getting land for your pure water factory set up.
Also, the size of land need doesn’t necessarily need to run in hectares as 1 to 3 plots of land can be enough for making pure water sachets.
However, if bottle water is to be included, then more plots of land would be demanded. Also the building can be simplified.
Most pure water factories are productions halls with one or two administration and utility rooms and security room at gate.
This is where most capital would go for investor who would be buying land and building the factory from scratch. This would best budget for at N10,000,000.
Government Approval & Registration – N250,000
The business of making packaged water, you will need the approval of NAFDAC & also business name registration.
For these two, business registration with corporate Affairs commission (CAC) would cost between 20,000 to N40,000.
The rest of the budget would go to NAFDAC registration. This is because NAFDAC officials would visit and inspect the environment for the production as well as test the purity of the water before issuing the factory with NAFDAC Reg. No.
All these and PR involved would gulf between N100,000 to N150,000.
Water Source: Borehole Drilling – N2million- N3million
This is very important in setting up pure water business in Nigeria. To start up pure water factory in Nigeria, it would require having a well drilled and installed borehole water fit for consumption.
To drill borehole and it’s installations such as overhead tanks, the cost is relative. This is because the topography of an area determines the expertise it would require to drill a borehole.
So, this process can gulf between N2 million to N3 million for places it is easy to have access to under water.
Water Purification & Packaging Equipments – N3million to N5million
Equipments such as water distillation machine is a must for pure water making factory in Nigeria.
This machine purifies water by removing more than 99.9% of contaminants, including chemicals, heavy metals, microorganisms and sediment.
Other materials such as the following and more must be procured under this budget.
- Automatic filling/sealing machine
- Printed nylon sachets
- Packaging bags
- Water Filters
- Overalls, Disposable Hand Gloves & Hair Nets
- Power Generator
- Treatment Materials
- UV Sterilizing Unit
- Cleaning Accessories
Delivery Truck – N2million
Delivery truck is very crucial for pure water factory business in Nigeria. For those with big budget, getting trucks should be on the table.
However where the budget is tight, one truck can be procured. These trucks can be supported with Cargo tricycles or hired trucks.
Labour
This is very crucial for operation of pure water factory business in Nigeria. It is important that for take off, the salaries of the workers for the first 2 -3 months should be available.
It doesn’t take much labour to run a pure water making factory business. Here are some workers you should consider for take off of the business of making pure water.
- Driver & Two Offloaders
- Sachet Water Packing Personnel (10)
- Manager/ Accountant
- Cleaner
- Security Guard
- Machine Operators (4)
These staff will be paid according to their roles and duties as their salaries wouldn’t be of same amount.
End Note on Starting Pure/Bottle Water Factory Business in Nigeria
The above analogy is just an estimate of how much it would cost to set up pure water making factory in Nigeria.
This post tilted towards how much it takes to start pure water factory in Nigeria. If bottle water is to be included in the business of packaging water in Nigeria, it would definitely cost more than what is estimated herein.
Potential investors are at liberty and advised to investigate more and visit already existing plants to find what obtains as well as budget adequately as result of fast change in market prices in Nigeria.