PACKAGED DRINKING WATER QUALITY AND STANDARDS
:
As per BIS specifications
PRODUCTION CAPACITY
:
45 lakh bottles of 1L capacity/annum
1.0 PRODUCT AND ITS APPLICATIONS Most of the water borne diseases emanate from unclean water. Packaged drinking water ensures safe, clean, potable water for human consumption.
2.0 MARKET POTENTIAL Though a large number of manufacturers have recently taken up production of packaged drinking water, yet there exists a wide gap between demand and supply. A number of units can be set up in North Eastern Region to meet the local demand in institutions, hotels, restaurants, offices, tourist and household.
3.0 BASIS AND PRESUMPTIONS a)
The unit will work for 300 days per annum on single shift basis.
b)
The unit can achieve its full capacity utilization during the 2nd year of operation.
c)
The wages for skilled workers are taken as per prevailing rates in this type of industry.
d)
Interest rate for total capital investment is calculated @ 12% per annum.
e)
The entrepreneur is expected to raise 20-25% of the capital as margin money.
f)
The unit would construct its own building.
g)
Costs of machinery and equipment are based on average prices of machinery manufacturers.
4.0 IMPLEMENTATION SCHEDULE Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below: ■
Scheme preparation and approval
:
01 month
■
SSI provisional registration
:
1-2 months
■
Sanction of financial supports etc.
:
2-5 months
■
Installation of machinery and power connection
:
6-8 months
■
Trial run and production
:
01 month
5.0 TECHNICAL ASPECTS 5.1 Location The plant can be located at any suitable place where availability of clean water, power, PET bottles and market access is ensured.
257
5.2 Process of Manufacture The flow chart of the process is as follows: Raw water from Source â Raw Water Storage â Raw Water Lifting Pump â Sand Filter â Activated Carbon Filter â Base Exchange Softener â Ultraviolet Disinfection â Micro Filteration System â High Pressure Pump System â Desalting â Mixing â Storage of Treated Water â Polishing Filteration â UV Disinfection System â Filling, Sealing & Capping M/C 5.3 Quality Control and Standards : As per BIS requirements
258
6.0 POLLUTION CONTROL There is no major pollution problem associated with this industry except for disposal of waste water which should be managed appropriately. The entrepreneurs are advised to take “No Objection Certificate” from the State Pollution Control Board.
7.0 ENERGY CONSERVATION Suitable measures shall be taken to conserve electricity.
8.0 PRODUCTION CAPACITY Quantity Installed capacity Optimum capacity utilization Working days Manpower Utilities Motive Power Water
: : : : :
45 lakh litre/annum (15,000 L/day) 20,000 L/day 70% 300/annum (3 shifts) 18
: :
40 kW 25 kL/day
9.0 FINANCIAL ASPECTS 9.1
Fixed Capital
9.1.1
Land & Building
9.1.2
Amount (Rs. lakh)
:
Land 2000 sq.m. Built up Area 700 sq. m.
:
Total cost of Land and Building
:
Machinery and Equipment Description
Amount (Rs. lakh)
UF based purification system (Sand filter, chlorination unit, UF membranes, sterlisation unit, SS silverisation unit, skid, electronic doser, ozone generator, water collection tanks, Quality control laboratory, deep borewell, deliveray van
:
28.00
Erection and electrification @ 10% of machinery cost
:
2.80
Office furniture & fixtures
:
1.20 ———32.00
Total 9.1.3
1.50 24.50 ——— 26.00
Pre-operative Expenses
259
9.1.4
Consultancy fee, project report, deposits with electricity department etc.
:
3.00
Total Fixed Capital
:
61.00
(9.1.1+9.1.2+9.1.3) 9.2
Recurring expenses per annum
9.2.1
Personnel Designation
No.
Salary Per month
Amount (Rs.lakh)
Factory Manager Production Manager/Chemist Supervisory staff Office Assistant Skilled workers Unskilled workers
1 1 6 2 4 5
6,000 5,000 4,000 3,500 2,500 2,000
0.72 0.60 2.88 0.84 1.20 1.20 7.44 0.76 —— 8.20
Perquisites @ 10% Total 9.2.2
9.2.3
:
—— 18
Raw Material including packaging materials Particulars
Qty.(MT)
Rate
•
Pet bottles including caps, labels, 1L size
45 lakh
3.60 each
162.00
• •
Chemicals Corrugated boxes bottles
-LS1,88,000
-LSRs. 20/24
006.00 037.60
Total:
------
-------
205.60
Utilities
Amount (Rs. lakh)
Power 180,000 kW Water 25 kL/day
4.92 0.28 ———— 5.20
Total: 9.2.4
Amount (Rs.lakh)
Other Contingent Expenses
Amount (Rs. lakh)
260
Repairs and maintenance@10% Consumables & spares Transport & Travel Publicity Postage & stationery Telephone Insurance
3.20 1.20 0.40 0.05 0.08 0.13 0.44 ———— 5.50
Total: 9.2.5
Total Recurring Expenditure
Amount (Rs. lakh)
(9.2.1+9.2.2+9.2.3+9.2.4) 9.3
224.50
Working Capital Recurring Expenditure for 3 months
9.4
56.13
Total Capital Investment
Amount (Rs. lakh)
Fixed capital (Refer 9.1.4) Working capital (Refer 9.3)
61.00 56.13 ———— 117.13
Total:
10.0 FINANCIAL ANALYSIS 10.1
Cost of Production (per annum)
Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5) Depreciation on building @5% Depreciation on machinery @10% Depreciation on furniture @20% Interest on Capital Investment @12%
224.50 1.23 3.08 0.19 14.00 ———— 243.00
Total: 10.2
Sale Proceeds / Annual turnover Item
Qty. (MT)
Rate per bottle
Amount (Rs. lakh)
Sale of packaged drinking Water in PET bottles cap. 1L, packed in cartons of 24 bottles each
45 lakh
6.00
270.00
———— 270.00
261
10.3
Net Profit per year = Sales – Cost of production = 270 – 243 = Rs. 27 lakh
10.4
Net Profit Ratio = Net profit X 100 Sales = 27X 100 270 = 10%
10.5
Rate of Return on Investment = Net profit X 100 Capital Investment = 27X 100 117.13 = 23%
10.6
Annual Fixed Cost
Amount (Rs. Lakh)
All depreciation Interest 40% of salary, wages, utility, contingency Insurance Total: 10.7
Break even Point = Annual Fixed Cost X 100 Annual Fixed Cost + Profit = 26.50 X 100 26.50 +27 = 49.5%
262
4.50 14.00 7.56 0.44 ———— 26.50
11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS Sonalifabs 71, Biren Roy Road (West) Kolkata – 700 061
Rital Agencies 55 III Main Road, Gandhi Nagar, Chennai – 600 020
Enviro Tech Utility, 32A, Main Patel Nagar Road, Opposite Wings Show Room West Patel Nagar New Delhi – 110 008
Ion Exchange India Ltd. Ticcon House Dr. E.Houses Road, Mahalaxmi, Mumbai – 400 011
Watrion Water and Filter Engg. Pvt. Ltd. 1, Harsivan Apartment, Ground Floor (Behind Canara Bank) West J.P.Road, Andheri (West) P.B.No. 7372 Mumbai – 400 059
Alpha Engineering 158, Pocket E-20, Sector-II Rohini, Delhi – 110 085
263
