Flow Pack Engineers

Manufacturers of Liquid Packaging Machineries

Regd Off : 110, Madhav Niwas, NatakWala lane, Borivali (W), Mumbai - 92 Factory : W-168, Manpada- MIDC, Dombivali (East), Mumbai
(M): +91-9833500354 (O): 0250-6454571, Fax 022-28999225

Email: flow_pack@yahoo.com Website : www.flowpack.in

PACKAGED DRINKING WATER PROJECT REPORT for 3000 LPH Plant

Product : Packaged Drinking Water
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 to meet the local demand in institutions, hotels, restaurants, offices, tourist and household.

The standards published for bottled water [both categories] clearly mention the filtration processes, hygienic conditions, lighting, labeling regulation etc. It also list the relevant testing standards [IS 3025, 1070, 4905, 5401, 5402, 5403, 5887, 10146 & 10500] required for methods of testing. These standards can be obtained from any branch of BIS for details: http://www.bis.org.in BIS: Bureau of Indian standards is a premier organization engaged in setting standards for various products and services.

ISI: Indian Standard Institution is the former name of BIS but till date ISI is the MARK given by this orgainsation. PFA: Governed under Prevention of Food Adulteration Act 1954, this agency safeguards the interests of the consumers through constant check on the food and beverage sector. As per law, it is necessary for you to obtain grant of licence from the concerned regional authority of the BIS (Bureau of Indian Standards) to manufacture packaged drinking water according to IS 14543:2004. In house Lab should be equipped to carry out all physical , chemical and micro biological tests prescribed as per IS : 3025, 1070, 4905, 5401, 5402, 5403, 5887, 10146 & 10500 and has to be conducted by expert chemist / micro biologist.Packaged Natural Mineral Water governed under IS:13428:1998, Amendment 1-5 upto 15th October 2004 and Packaged Drinking Water governed under. IS: 14543:2004. The webpage at : ( Some very useful Links ) http://www.bis.org.in gives all the necessary information.

http://www.bis.org.in/cert/NormalProcedure.htm gives the normal procedure and that at http://www.bis.org.in/cert/SimplifiedProcedure.htm gives the simplified procedure for grant of licence for domestic manufacturers.

# # We believe in complete transparency for any business deal with human values. # #
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 6 months approximately. Break-up of the activities and relative time for each activity is shown below: Scheme preparation and approval SSI provisional registration Sanction of financial supports etc. Installation of machinery and power connection Trial run and production : : : : : 01 month 1-2 months 2-5 months 3-4 months 01 month

5.2 Process of Manufacture The flow chart of the process is as follows:

5.3 Quality Control and Standards : As per BIS requirements 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

72 lakh litre/annum @ 2000 case per day

: 3000 LPH : 80% : 300/annum ( including public holidays & weekly offs)

: 18

: 4 0 kW : 30 kL/day

9.1.1 Fixed Capital Land 2000 sq.m. Built up Area 700 sq . m. Total cost of Land and Building 9.1. 2 Machinery and Lab Equipments : Amount (Rs. lakh) : 01.50 : 24.50 : 26.00

Description

28.00 Machines + Water Purification System (Sand filter, chlorination unit , (5.00 Lab UF membranes, sterlisation unit , SS silverisatio nunit, skid, Equipments, electronic doser, ozone generator, water collection tanks, : Chemicals & Quality control laboratory, deep borewell) + Filling Utilities like machine + Blowing machine + labelling & Packing. boiler, chiller, compressor) Erection and electrification @ 10% of machinery cost Office furniture & fixtures Total 9.1.3 Pre-operative Expenses Consultancy fee, department etc. project report, deposits with electricity : 2.80 : 1.20 : Rs. 37 Lakhs

3.00

9.1.4 Total Fixed Capital (9.1.1+9.1.2+9.1.3) = Rs. 66 Lakhs

9.2

Calculation of Recurring expenses per annum :-

9.2.1

Personnel
Designation Factory Manager Production Manager/Chemist Supervisory staff Office Assistant Skilled workers Unskilled workers Total Perquisites @ 10% Total 18 No . 1 1 6 2 4 5 Salary Per month 6,000 5,000 4,000 3,500 2,500 2,000 Amount (Rs.lakh) 0.72 0.60 2.88 0.84 1.20 1.20 7.44 0.76 8.20 i.e (11 p/bottle)

9.2.2 Raw Material including packaging materials Calculated on per annum basis
Amount (Rs.lakh)

Particulars Preform Caps ( Closures ) Concentrate Reagent & Blending labels

Quantity

Rate (Rs)

72 Lakhs 72 Lakhs -LS-LS-

90 Rs / Kg i.e 142.5 Lakhs Rs.1.98/preform@22gm 40 paise / cap 40 paise / bottle i.e 2.00 paise / bottle 15 paise/bottle Rs . 10 per box i.e 8.00 p / bottle 28.8 Lakhs 28.8 Lakhs 1.44 lakhs 10.8 Lakhs 60 Lakh Rs. 272.3 Lakh

Corrugated boxes/ 12 bottles 6 Lakhs Total

9.2. 3 Utilities ( Electricity & Water) Amount (Rs. lakh) Power 180,000 kW Water 30 kL/day Total 9.2.4 Other Contingent Expenses Repairs and maintenance@10% 4.92 0.28 Rs 5.20 Lakh i.e (7.00 p/bottle) Amount (Rs. lakh) 3.20

Consumables & spares Transport & Travel Publicity Postage & stationery Telephone Insurance Total

1.20 0.40 0.05 0.08 0.13 0.44 Rs. 5.50 Lakh i.e (7.00 p/bottle)

T otal Recurring Expenditure Rs. 291.2 9.2.5 (9.2.1+9.2.2+9.2.3+9.2.4) Lakhs

9.4 Total Investment

Capital

Amount (Rs. lakh) 66.00 ( deduct 26 Lakh if already own a land refer clause 9.1.1 above)

Fixed capital (Refer 9.1.4)

Working capital (Refer 9.3) Recurring Expenditure for 3 months i.e 291.2 / 4 for 3 months = 72.8 Total 139 Lakhs

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% Total 291.2 1.23 3.08 0.19 14.00 309.7 Lakhs

Actual Production Cost for 1 Lit PET bottle : Rs. 310 Lakh / 72 Lakh Pet bottles = 4.30 Rupees per bottle. 10.2 Sale Proceeds / Annual turnover
Item Quantity Rate per Amount

bottle Sale of packaged drinking Water to the Distributor in PET bottles @ 1Lit, 72 Lakh packed in cartons of 12 bottles each Total 6.0

(Rs. lakh) 432.00 432.00

10.3 Net Profit per year

= Sales - Cost of production = 432 309.7 = Rs. 122 Lakhs / annum

10.4 Net Profit Ratio

Net Profit x 100 = -------------------

Sales

= 100

122 x

------------432

= %

28.2

10.5 Rate of Return on Investment

Net Profit x 100 = -----------------------------Capital Investment

122 x 100

---------------139

87.7 %

---------------------------------------------------------------------------------------------------------------------------------------------------------------------

Following is the Summary of break up of manufacturing cost calculated on per bottle basis running for a 10 Hours shift daily basis for 25 working days/ month for a 3000 LPH plant.
Plant Capacity Pack Size Speed of Filling Machine Production per hour cases per hour Production per day shift.
Concentrate Closure (Cap) Preform Label : 40 paise/ bottle : 40 paise / bottle : 1.98 Rs/ 22 gm ( @ 1 lit) : 15 paise

: 3000 Litres per Hour : 1 Litre Pet bottle : 40 Bottles per Minute : 40 x 60 = 2400 Bottles per hour / 12 = 200

: 200 x 10 = 2000 cases per day for 10 hour

Carton : 80 paise / bottle (@ 1 lit) Re-agent Blending : Rs. 50,000/- ( for one year) i.e 1 p / bottle : Rs. 50,000 /- ( for one year) i.e 1 p / bottle

Manpower + Electricity + (Transport & other expenses) : 11 paise + 7 paise +7 paise = 25 p / bottle BIS license renewal per year : Rs. 1,00,000 /- + Rs. 15,000 ( per visit charges) i.e 2 p / bottle

Depreciation Cost ( Machinery & Building + Interest on capital Investment ) = 18 paise / bottle

TOTAL MANUFACTURING COST PER BOTTLE : Rs. 4.30 /- per bottle

Total No. of Bottles per case @ 1 lit : 12 bottles. Total Manufacturing Cost of one case @ 12 bottle per case for 1 lit : 4.30 x 12 = 51.6 Rupees per case Market Selling Price to the Distributor per bottle @ 1lit = 6.0 Rupees ( Subject to more Variation) So Total Selling price to the Distributor of one case @ 1 lit : 6.0 x 12 = 72 Rupees per case

PROFIT :
Production @ 40 BPM per minute = 2400 bottles per hour ------------------------------ = 200 case per hour @ 1lit 12 bottles / case Total Production for 10 hour basis shift on daily basis = 200 x 10 = 2000 cases / day @ 1lit PET bottle. Per Month : 2000 cases x 25 working days = 50,000 cases / month

Net Profit from each case [ Selling Price ( 72 Rs/ case) - Mfg Cost ( 51.6 Rs/case) ] = Rupees 20.4 per case

Total Net Profit per Month : 50,000 c/s x 20.4 = Rs.10,20,000 /per month (Subject to 10-15 % variation in Profit in Case of any Major Breakdown/
No Electricity/ Manpower not available/ Raw Mtl Not Avilable) Kindly Note : 1. The Market Selling Price/case to the Distributor is Subject to Variation depending upon the Market. 2. The Actual Manufacturing cost may be further decreased depending upon the Raw material Supplier, if Raw material

Quantity purchased in bulk, Market is nearby, Low Labour cost, Plant running on Holidays & extended hours, Spare Parts Readily available on time to avoid any Major Breakdown Time.

provides a range of options of machineries at a very reasonable price :

For Example for a 3000 Litres Per Hour Plant R.O Water Treatment Plant S.S 304 Mtl Rs.6,75,000 /Pet Blowing Machine Semi-Auto Hydraulic Type Rs.4,75,000/- (Capacity 1200 Bottles per hour, Bottles can be blown before, stored & used later) Fully Automatic 3 in 1 Monoblock Rinser-Filler-Capper Machine 40 BPM @ 1 lit 10,35,000 /Shrink Tunnel For labelling the bottles 60,000 /Extra Conveyor per 2.5 meter length as per plant layout 55,000/Coding Machine for bottle coding (Inkjet Type) 2 line message Rs. 1,90,000 /3 lines msg Rs. 2,70,000 /Inspection & Collection Table : Rs. 80,000/-

Flow Pack Engineers

TOTAL : Rs. 26,90,000 /Similarly We can supply for a 5000 LPH plant and 8000 LPH plant at a very reasonable price.

Waiting for your valuable reply for a long & fruitful association.

With Regards,
Vivek Dubey - +91-9833500354 Flow Pack Engineers , Mumbai

Email : flow_pack@yahoo.com Website : www.flowpack.in

# # We believe in complete transparency for any business deal with human values. # # Information of use for grant of BIS licence that could be collected from the official website of BIS is furnished below.
1. List of test equipments, glassware & chemicals. 2. List of BIS approved outside labs for the product water, containers (including lids/caps). 3. Details of samples of the product/containers to be drawn during BIS visits. 4. Acceptance of marking fee. 5. Acceptance of scheme of testing and inspection (STI). 6. Guidelines for assessment of hygienic conditions with explanatory notes for guidance. 7. List of Indian standards, which a packaged drinking water industry must have, in original. 8. Undertaking for getting the samples tested as per STI frequency from BIS approved/ NABL accredited outside lab. 9. Consent letter from concerned outside lab for testing of sample. 10. Copy of the appointment letter, qualification certificates for chemist and microbiologist. 11. No Objection Certificate (NOC) from the concerned office of Central Ground Water Authority (Not applicable in Andhra Pradesh). 12. Detailed manufacturing process indicating treatment for disinfection along with process flow chart (Clause 3.2 of IS 14543:2004 specifies various processes for manufacturing packaged drinking water for guidance only). 13. Copies of medical examination reports of the employees engaged in washing/ filling of the product for any communicable/skin diseases and fitness to work in a

food industry. 14. Details about the arrangements of pest control treatment such as an agreement/contract with the agency. Also details of Cleaning in Place (CIP). 15. Declaration of the shelf life of the product separately for each type of container (e.g. 1 litre, 2 litre,500 ml etc. ). While the manufacturing and marketing cost of water with some reasonable profit works out to be not more than half-a-rupee per litre without the cost of container, the cost increases by another half-a-rupee per litre to meet the BIS standards. In the larger interest of providing safe potable water at affordable cost to all the sections of people and reduce the incidence of water-borne deaths and diseases in India, it is necessary for the government to revise its stand of treating packaged drinking water as food.