Contents• Introduction• Vision and Mission• Basis and Presumptions• Demand and Supply analysis• Marketing Plan• Operational Plan• Financial Plan• Conclusion
Why packaged water industry?• Water is basic human necessity• Growth rate of Indian population is 1.58% annually• Normal human require 3-4L water/day and increases during summer• Acceptability by average consumer
• Vision: To become the best provider of safe, pure and affordable packaged drinking water to all people in India• Mission: Our mission is to become the market share leader in each market we serve. We will earn this leadership by providing our distributor and end user customer innovative, high quality, cost effective product.
BASIS AND PRESUMPTIONS• The unit will work for 300 days per annum on single shift• The wages for skilled workers are taken as per prevailing rates in this type of industry.• Interest rate capital on loan from Bank @ 14%.• Costs of machinery and equipment are based on average prices of machinery manufacturers.• Loan is sanctioned by the authority
Demand analysis• The bottled water industry is estimated to be whopping Rs 1600 cr business• Growing at the rate of 38-40% over last 4 years Indian bottled water industry is fastest growing in the world• India is the tenth largest water bottled consumer in the world• Scarcity of clean water and poor quality of tap water paves the way for growing demand of bottled water
Supply analysis• The city has for long been facing the problem of unequal distribution of water, with core areas receiving more water than the fringe areas• Many of the suburbs get an irregular supply of water• New residential areas donot have a regular and safe supply of water• All the above condition indicates that there is considerable gap in demand and supply of pure water
License Requirements• BIS license• Local Municipal Corporation – PMC• FDA license by State Government• Pollution Control Board• MIDC permission
• BIS specification REQUIREMENTS TO BE COMPLIED WITH BY THE APPLICANT OF PACKAGED DRINKING WATER FOR GRANT OF BIS LICENCE ACCORDING TO IS 14543:2004• A. GENERAL REQUIREMENTS General requirements for grant of BIS Licence, please see BIS website http://www.bis.org.in/• B. PRODUCT SPECIFIC REQUIREMENTS• (FOR PACKAGED DRINKING WATER)• 1. List of Test Equipments, Glass wares & Chemicals See Annex A• 2. List of BIS approved outside lab for the Product See Annex B• Containers (including lids/caps)• 3. Details of samples of the product/containers to be drawn during --- See Annex C• BIS visits.• 4. Acceptance of Marking Fee See Annex D• 5. Acceptance of Scheme of Testing and Inspection (STI) --- See Annex E• 6. Guidelines for assessment of Hygienic conditions with See Annex F• Explanatory notes for guidance• 7. List of Indian Standards which a Packaged Drinking Water Industry - See Annex G• 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 (Ref. Sr. No. 8).• 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.• 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 Shelf-life of the product separately for each type of container (e.g. 1littre, 2 litre, 20 litre etc.).• 16. Undertaking Regarding clause 6 (Packing) of IS 14543:2004 and clause 7.2 of IS 14543:2004 (Labelling Prohibitions)• 17. Obtain request letter from BIS for getting the sample tested for Radio Active Residues, from BARC before submitting the application and test report received from BARC is to be submitted along with the application form.
Periodical Tests After BIS license• Monthly tests• Quarterly Raw water and Packing materials testing• Six monthly tests• Pesticides Residue
POLLUTION CONTROL• Suitable equipments to be provided to check harmful and non permissible contents in effluent if any• “No Objection Certificate” from the Municipal Corpoation planned to be obtained• Energy conservation• Suitable measures should be adopted to use appropriate amount of fuel and electricity. The promoters should arrange periodic auditing of electrical consumption.• Unnecessary operation of machines should be controlled to avoid excess consumption of electricity.• Natural ventilation in production premises may be made available to avoid use of electric power during day hours.
Product Packaging• Water Specifications• Certificate mark of the ISI• Expiry Date (Best Before Date)• A brief intro of the company with address• Website address of the company• Brand Name• Net Volume in Metric System• Batch Number or Code Number
Target market Pune , Pimpri ,Chinchwad and suburb Sales will be through distributors and direct consumption unit Direct consumption unit include Railway/Bus stations Grocery stores Pan shops Institutions/Corporate houses Hotels/ Restaurants/lodges
Positioning• Quality• Competitive Pricing• Quick service
Players in the marketNational LocalKinley – Coca Cola Kate AquaAquafina - PepsiCo SumeruBailey – Parle agro Kelvino –Vasundhara foodsOxyrich-Dhariwal Industries SaigangaBisleri-Bisleri Ltd. Real Aqua Oxygen Aviva
Market situation• Pune and suburbs emerging as a huge market for packaged drinking water industry due toIncreased disposable income of peopleIncreased standard of livingHot destination for IT industryHome to three large industrial zonesIncreased population of younger generation who are more keen to drink packaged waterReal estate boom
Marketing Mix• Price: Penetration Pricing Product Distributor Retailer 1L 6 Rs 10 Rs 20 L 170 or 20 Rs filling NA• Place: Sales through end consumption unit and distributors
Promotional Strategy• Focus on mass awareness: pamphlets• Distribution of free samples at launch• Selling at sports event• Tie up with offices , colleges , institutions• Banners mounted on trucks, distribution vans , canteens• Participating in exhibitions• Website for selling product online
Location• Within PMC limits• Regular supply of tanker is available.• Adequate power.• Road network.• PET preform material – available.• Market access ensured.
Process of Manufacture Raw Water Water Purification Rinse – Fill - CapLabelling Packing
Process of Manufacture• PROCESS FLOW : The plant has 5 components : 1] Bottle Blowing 2] Water Purification 3] Rinsing - Filling - Capping 4] Labeling and Heat Shrinking 5] Final Packing• List of equipment suppliers
Purification ProcessRaw Water Packaged Treatment Plant Storage Treated R O Treatment Plant Water StorageOzonization U V Disinfection
Purification Process• Raw Water from Source• Raw Water Storage – 2 days reqmt- 10000 Litres• Raw Water Lifting Pump• Sand Filter Packaged water• Activated Carbon Filter treatment system 2500 L/Hr• Base Exchange Softener• Ultra Filtration System• Reverse Osmosis System• Storage of Treated Water• Ozonization• UV Disinfection System
Area Requirement Sq. ft.• Covered Area – RM Storage Room 753.49 – Pumping and Generating Eqpt 968.78 – Water Processing plant 1937.57 – finished product packing 968.78 – Finished Product Storage Room 968.78 – Management Offices and Lab 699.67 – Parking 430.57• Total Covered Area 6727.64• Total Area including Expansion Plan – 7,534Sqfeet
RISK MONITORINGTYPES OF RISKS SOLUTIONS1) ELECTRICITY PROPER EARTHING, REGULAR CHECK UPPOWER SUPPLY AVAILABILITYSHORT CIRCUITING2) WATER REGULAR MONITORING, ADHERING TO GOVT RULES.AVAILABILITY IN QUANTUM AND TIMINGWATER QUALITY
RISK MONITORINGTYPES OF RISKS SOLUTIONS3) THEFT REGULAR CHECKS AND MONITORINGMATERIALINFORMATION4) RELIABILITY OF DELIVERY INTEGRAL TRANSPORT & 3PL5) UNEXPECTED BREAKDOWN CORRECT AND TIMELY CERTIFICATIONS HIGH QUALIFY STANDARDS
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