According to reports, the production of sachet water in Nigeria started in the late 90s and today the advancement in scientific technology has made sachet water production one of the fastest growing industries in the country. So many individuals and corporate bodies in Nigeria now engage in packaging water in polythene sachets of about 50-60 cl. which they sell to the public.
Hence, drinking water is commercially available in such easy to open sachets. In Nigeria, the production, marketing and consumption of sachet water have increased tremendously. There are now several brands of this sachet water marketed in Nigeria.
The majority of consumers tend to be more concerned with the appearance and taste of water than the invisible loads of potentially harmful micro-organisms as well as other contaminants that may be present in the water. Pure water is in high demand in homes, schools, institutions, offices, churches, hospitals, public gatherings, etc. As long as you can find humans there, water is needed.
So, if you can meet with the demands of providing clean and affordable drinking water, this business idea is for you. Starting a pure water business in Nigeria is very profitable but it needs a capital to run it effectively. Over millions of sachets are consumed every day. The high demand for sachet water continues to increase because of the rising population of the country.
Estimated Cost Breakdown to Start a Pure Water Business in Nigeria
Pure water business has now become one of the common areas of investment in Nigeria, especially since everyone drinks water. Aside from quenching thirst, it is affordable. Also, water is essential to life and important to the body. It moisturizes the tissue and other essential body systems such as blood, bones, brain, spinal cord, joints etc. So, if you are interested in starting this business, below are the estimated costs you should analyze and consider.
Table of Content
1. Purchasing Land and Building the Factory: N5 million – N7 million
To start a pure water business in Nigeria, you need land, and depending on your capital, you can lease or build your own factory. Note that building can be big or small, it all depends on your budget, but ensure to follow the standard factory layout for overall ease of production. Your factory layout should include a general office, water production room, storage material room, toilet, changing/cloakroom, and laboratory.
In addition, you have to ensure that the production area is free from water and air pollution. You have to make sure that there’s constant power supply at the factory. The factory should be situated in a secure area with a good road network. Note that you will need to drill a borehole or partner with water corporation agencies.
In the pure water business, water is a raw material for production and must be readily available. If need be, you will also have to install an overhead tank and reservoir for back up. Then, set up plans for periodical water treatment. Over all, expect to spend about N5 million – N7 million to make thus particular sets of plans.
2. Business Registration: N500,000
Next is registering your business with the Corporate Affairs Commission (CAC). Here, you can do a business name registration, register as a Limited Liability Company, or any other type of registration that suits your business structure. Registering your business name or company with the Corporate Affairs Commission can cost you as low as N10, 000 or as high as N100, 000.
You will also need to obtain NAFDAC approval to be able to make and sell your sachet water to the general public. NAFDAC approval for your water business means your water is fit for drinking. Start by going to the NAFDAC office to obtain and fill the relevant forms.
The process will take you as much as three months and up to six months before you get the certificate. You can also choose to get the Application Requirement, read it and start following the procedures as outlined. Note that getting NAFDAC Approval is one of the most difficult tasks when starting a pure water business and this step will cost at least N300, 000.
3. Required Equipment and Materials: N3Million – N5Million
You will also need to buy some necessary equipment when starting a pure water business in Nigeria. Ensure to buy what you can afford and rent the rest till you can buy them. Work within your budget. Here are the things you will need to kick start your journey as a Sachet (Pure) water business owner:
- Printed nylon sachets – N470/kg
- Packaging bags – N3200/Bundle
- Water micron filters – N250/one
- Micron filter casing – N3500/one
- Treatment materials (Activated carbon, Hydrolytes, Brim, Calcite, Sand, Gravel) – N64,000
- Soap for monthly tank cleaning maintenance – N450
- Diesel – N190/litre
- Fuel – N140/litre
- Drums, buckets and plastic baskets – N400/one
- Overalls, crocs, disposable hand gloves and hair nets – N7200
- Borehole system – N100,000
- Overhead tanks (2) – N40,000
- Water filtration unit + treatment charging – N250,000
- 20 KVA generator – N700,000 to N1,200,000
- Pumps, valves and pipes – N150,000
- UV sterilizing unit (55 Watts) – N23,000
- Reverse osmosis unit (optional, 2000L) – N2,500,000
- Ozone generator – N450,000
- Automatic filling/sealing machine – N650,000
- Delivery truck (most popular is the Mitsubishi Canter) – N1,200,000
4. Employees and Human Resource: N100,000 Payroll per month
This is one of the most sensitive aspects of your business. Human resources are the lifeblood that drives the whole mechanism of your production. Before employing any personnel in contact with water production operations, ensure that you ask/require for a proper food handler’s medical test, and also provide proper training for machine handling and processes.
- Machine operators (2) – N12,000, above daily production target would earn them extra N3 commission/bag
- Quality Control – N20,000 to N30,000 depending on your profit margin
- Marketing/Administrative personnel – N20,000, with N200 commission for each new client
- Cleaner (1) – N8, 000
- Driver – N15,000 with extra N3 for extra bags sold
- Motor boys (2) – N8000, commission amount are the same as driver.
- Security – N10, 000, this is necessary especially if you don’t want your properties missing at night.
Indeed water is essential to life; the amount of water intake balances out dehydration, it helps in metabolic reactions for food breakdown, and internal waste removal, that’s why medical experts’ advice humans to consume at least 8 glasses or 1.5 litres of water in a day.
Ideally, in Nigeria, one of the most popular means of getting drinking water is “the pure water”. It is very convenient, easily affordable (N10), and easily recyclable into other plastics. Staring a pure water business can be very lucrative and the opportunity in the industry is endless and open to any savvy entrepreneur.