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A
REPORT ON
ESTABLISHMENT
OF A
WATER PURIFICATION PLANT
Submitted By,
PGDM-04
Nilanjan Paul
A report on establishment of a WATER PURIFICATION PLANT Page 2
Mineral Water Factory Set up Idea
Introduction
Mineral Water originally meant water from various natural springs which are thought to be
having medicinal and curative value. These spring waters, although contain dissolved
chemicals of medicinal properties, also contain harmful micro-organisms. Besides this the
underground and surface water is also not potable due to hardness as well as due to presence
of toxic substances and Bacteria. This requires suitable treatment and purification to make it
safe and potable drinking water with long shelf life. The water is packed in suitable food
grade packing generally in PVC or PET Bottles of different capacities.
Bottled Mineral Water Plants
Demand of Mineral is growing very vastly in town. Mineral water using in every office,
party, travel, schools, and home in every city of India. This is the one of the most profitable
business in India. Most of people use the Mineral water for drinking now in every city of
India. This business is evergreen business.
There are many type of plants for every type of budget. You can start bottled mineral water
plant as your budget. There are many companies by which you can buy the water treatment
plant. That company installs the plant at client’s site. You can buy a bottle packing machine
extra for packing the mineral water. This machine comes in different type of capacity.
Bottled Mineral Water Plants may establish in a small piece of land. If you have approx 1000
sq. meter you can install a Bottled Mineral Water Plant. You can start this most profitable
business in approx Rs. 3-5 lacs. Banks sections loan for this project.
Product
Water in its pure from is oxide of hydrogen or hydride of Oxygen. It is transparent and
colourless liquid with a melting point of 0°C and a boiling point of 100°C. Its refractive index
is 1.00 and specific gravity 1.0. Pure water is tasteless, however the presence of minerals and
dissolved salts and gases impart taste in the water. Depending upon the quality of Raw water,
suitable treatment is given to the water to make it as per the standards and packed in food
grade plastic Bottles with label Indicating details of composition, date of bottling, expiry
date, quantity etc.
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Suggested Capacity
The minimum economic capacity for the manufacture of Mineral-water is 15000 Bottles
per day or 45 Lacs Bottles per year.
FACTORS TO BE CONSIDERED
BEFORE ESTABLISHMENT
Market
The Consumption of Bottled Mineral water is linked mainly with tourism industry as the
concept has virtually been imported from the western lifestyle. The necessity of safe and
hygienic drinking water laid to an increase of it demand in star Hotels, get togethers,
conferences and Banquets. The demand for mineral water by the year 2000 is expected to be
about 1200 Lakhs Bottles per annum. Parle groups Bisleri and Bailey have about 70% of
share of the total market and the balance is shared among other brands.
Land & Building
The unit requires about 1000 sq. metres of land with covered area of 500 sq.metres and to
save on it should be established in the outskirts of the city so that raw materials are available
and the cost of production is minimised.
Raw Materials
The requirement of raw materials for the manufacture of 45 lakh bottles (one litre) of Mineral
Water per year is as under:-
PVC Bottles : 45 Lakh Nos.
HDPE Caps : 45 Lakh Nos.
Corrugated Boxes : 3.75 Lakh Nos
Customers Needs & Preferences
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The product or final packaged water should be produced keeping in mind the needs and
wants of target customers. A great deal of customer satisfaction should be provided.
The Government Regulations
The government regulations usually vary from one country to another. This type of business
is under the FDA (Federal and Drug Administration). The said entity is responsible for
ensuring that the bottled water is safe from procurement and processing. It will also cover the
bottling process and finally, the transportation. You have to determine the rules in advance
and make sure that you don’t violate anything. By doing so, you will sell pure and consistent
bottled water. Never sell tap water, claiming that it is bottled water. Otherwise,
Environmental Protection Agency or EPA will sanction your business and may result to a
close out. This is a highly competitive industry and you must ensure that you’re marketing
water effectively. Identify the weaknesses of your competitors and use it to enhance your
business. If you can offer something unique, customers will surely patronize your business.
To increase your sales, you can sell bottled water during soccer games, basketball, and other
sporting events. You can even maintain an online business site to reach a wider market. Make
sure that you provide for a shopping cart to make the buying process easy. You can use the
business plan to secure capital for your new business. With the right advertising methods, you
can make lots of money.
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TECHNICAL ASPECTS
Processing and Bottling
Raw water to be processed is collected in tanks. A known quantity is pumped into the above
tank where the water is dozed with alum for coagulation with heavy metals or insoluble
matters.
The water after coagulation is allowed to settle for an hour. The impurities may be removed
by Reverse Osmosis techniques also. The supernatant water is taken to the chlorination tank
where primary disinfection is brought about by bubbling chlorine gas. The water is then
passed through sand filters for trapping of undisclosed impurities. The water after sand
filteration is passed through Carbon filters for removal of odour, colour and also for
dechlorination. It is then passed through series of micro fillers comprising 5 micron, 1 micron
and 0.4 micron filter followed by ultraviolet disinfection system for terminal disinfection.
Packing is done in PET bottles of 1 litre capacity through an automatic rinsing, filling, and
capping machine fitted with an Ozone generator. The bottles after capping are shrink
wrapped (Optional) and packed in corrugated boxes of one dozen each.
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Utilities
The unit will require a total connected load of 60 KVA and a maximum demand of 50
KVA. Water requirement is about 11 5000 KL per annum.
Personnel’s
The unit requires to employ about 20 persons including staff for office and factory for
production supervision and administration.
Quality Control and Standards
The plain drinking water has to be bottled in pet bottle as per IS Specifications
(IS:14543:1998: Packaged Drinking Water and IS:13428:1998: Packaged Mineral Water).
The details of the specification can be obtained from Bureau of Indian Standard, Manak
Bhawan, 9, Bahadur Shah Zafar Marg, New Delhi 110002.
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Manufacturing Process
Raw water is purified by passing it through sand filter and Activated carbon filter. Excess
hardness is reduced by softner and the softened water is passed through micron filters to
make it sparkling clear. To make it bacteria free this water is passed through ultraviolet light
radiation. Packing of the water is done by Bottling System comprising of the facilities of
Bottling system comprising of the facilities of Bottle rinsing, Filling and capping, Bottled
mineral water is packed in the cartons.
Plant & Machinery
Raw water pump
Sand filter
Activated carbon filter
Softener
Micron Filteration system
Ultra Violet System Water Storage Tanks
Automatic bottle Rinsing, filling and Capping line.
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Pollution Control
Although this unit will not affect the environment, but the entrepreneurs are advised to
obtain, No Objection Certificate from competent authority of State Pollution Control Board.
They should develop Kitchen Garden in the factory premises to utilise waste water from the
plant.
Energy Conservation
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Suitable measures should be adopted to use appropriate amount of fuel and electricity. The
promoters should arrange periodic auditing of electrical consumption, as the unit will be
running in three shifts. 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 electrical power during day hours.
Licensing Requirements
The following licenses/ approvals are to be obtained for setting up a packaged drinking water
plant in India:
 Small scale industries registration
 ISI certification from Bureau of Indian Standards (BIS)
 Pollution control certificate
 Water test report from an authorized laboratory of raw water
 Pest control certification
 Certificates from chemist, microbiologist
 Medical certificates for workers
 No objection certificate (NOC) from Gram Panchayat, if applicable
 Registration of trademark
 Documents related to ownership of land/lease of land for setting up the plant
 Memorandum of association of companies/partnership deed, if applicable.
 Electrical load sanction
 Sanction layout plan
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THE FACTORY LAYOUT MODEL THAT
MAY BE ADOPTED
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REQUIREMENTS
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2000 LPH Std Plant
2000 LPH Economy
Plant
Just Jars Plant
Notable
Points
Most Feasible
Bottle Cost High as No
Blowing Facility
Focussed , but not
equipped to handle all
types of demands
List of
Machinery
1. Water Treatment Plant
2. Bottle Blowing Unit
3. Bottle Filling Machine
30 BPM Auto
4. Pouch Packing Machine
5. Ink Jet Coder
1. Water Treatment Plant
2. Bottle Filling Machine
18 BPM Semi Auto
3. Pouch Packing Machine
1. Water Treatment Plant
2. Jar Rinse-Fill-Capping
Machine [Auto]
Machinery – 40 Lakhs 26 Lakhs 20 Lakhs
Building
Cost
Calculated
@ Rs.800/-
per Sq ft.
3000 Sft ( 24 Lakhs) 2000 Sft ( 16 Lakhs ) 2000 Sft ( 16 Lakhs)
Description Bottles, Jar, Pouch , with
Bottle Making Machine
also.
Bottle, Jar, Pouch ,
WITHOUT Bottle Making
Machine
Just 20 Ltr Jar Filling Line
Manpower Moderate , 3 Managerial,7
Workers
Moderate , 2 Managerial,6
Workers
Moderate , 1 Managerial,5
Workers
FINANCIAL PLANNING ASPECTS
Estimated cost of the project
The project cost for setting up a unit a manufacturer of (45 lakh Bottles) per annum is
estimated as follows:
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1. Land & site development 4, 50,000
2. Building 10, 70,000
3. Plant & machinery 23, 50,000
4. Technical know-how & engineering
fees 30,000
5. Other misc. fixed assets 6, 00,000
6. Preliminary & preoperative expenses 6, 00,000
7. Margin money for working capital 5, 00,000
8. Contingencies 4, 00,000
TOTAL 60,00,000
Suggested Means of Financing
1. Long term loan 43, 00,000
2. State cash subsidy 6, 50,000
3. Promoters capital 10, 50,000
TOTAL 60,00,000
Below are the Cost and the Profit Margin:
Cost of Production/250 ml Pouch
Sr. No. Description Cost [Rs.]
1. Empty Pouch with Printing 0.14
A report on establishment of a WATER PURIFICATION PLANT Page 14
2. Water Cost 0.02
3. Transportation 0.02
4. Misc Cost 0.03
5. Interest on Capital 0.03
6. Operating Cost 0.23
7. Selling Cost 0.35
Margin 0.12
Production/ 1 Litre Bottle
Sr. No. Description Cost [Rs.]
1. Cost of Bottle + Cap 2.90
2. Shrink Label 0.30
3. Shrink Cap 0.80
4. R.O. Water 0.16
5. Misc Cost 0.10
6. packing Cost 0.20
7. Interest on Capital 0.05
8. Operating Cost 3.79
9. Selling Cost 5.50
Margin 1.71
Cost of Production/20 Litre Jar
Sr. No. Description Cost [Rs.]
1. Cost of Water 0.60
2. Cost of Maintenance 1.00
3. Transportation 1.00
4. Interest on Capital 0.60
5. Misc. Cost 0.40
6. Operating Cost 3.60
7. Selling Cost 20.00
Margin 16.40
FORMS OF FINAL PRODUCTS
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BASIS AND PRESUMPTIONS
This project has been drawn on the basis of following presumptions.
1) Working hours : 8 per shift
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2) Number of : 3 shift/day
3) Number of : 300 Working days per annum
4) Total number of : 72 working hours
5) Working : 75% efficiency
6) Total period for : Third year achieving from maximum the date of capacity
commencement utilisation of production.
7) Margin money : 25% of Capital Investment
8) Rate of Interest : 15% per annum of Capital
9) Construction Cost of Building, Cost of Land, Labour Charges and Cost of Plant,
Machinery and Equipment have been considered as per prevailing rates in the market.
10) Cost of Installation and Electrification of Machinery and Equipment has been taken
at the rate of 10% of the cost of Plant and Machinery.
11) Operative period of the project has been considered as 7 years.
IMPLEMENTATION SCHEDULE
It is expected that total time of about 9 months will be taken from the date of approval of the
scheme for complete implementation. Break-up of the activities and relative time for each of
them is shown below:
Nature of Time Period Activity (in months)
1). Preparation of Project 0-1 month and its approval
2). SSI Provisional 1-3 months Registration
3). Sanction of Loan 2-5 months
4). Clearance from 2-5 months Pollution Control Board and taking permission from
Municipal Health Authority/BIS etc.
5). Placement Order for 4-6 months machinery of equipment
6). Installation of machinery 6-8 months.
7). Power connection 2-6 months arrangement from Electricity Board.
GENERAL MANAGEMENT QUESTIONS PRIOR TO
ESTABLISHMENT
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1. What is the Profit Margin?
This states that after a period of time what is the total margin that the firm would be earning
after conducting several business operations.
2. How much is the investment?
The investment truly depends upon the type of plant & the Capacity of plant Let me explain
this in details.
• Type of Plant :
Some people may look at a prosperous Jar Market, at the same time some other may feel
that they should go for bottles, jars & Pouches. Some of you may feel that they will start
with just bottle filling. Empty Bottles bought out where as some will want to have complete
bottle making Set as well.
So the decision of “Which type of Plant” Truly depends upon your targeted Market
segments. Once you decide what to have in your product mix, you can decide the machinery
and other things.
To get an idea of how to decide the plant Capacity.
Now to arrive at the Mineral Water Plant Cost.
These are the elements which are combined each other.
 Machinery & Equipment
All machines like Water Treatment, Bottling, Lab equipment etc. will come under this.
• Utilities: Water Electricity Air Conditioning, air Compressor etc.
• Liaison Expenses : ISI License & other Government License expenditure.
• Consultancy Charges : Like ISI Consultancy project funding etc.
• Building Cost : Construction, interior cost
3. How much is the ROI (Return on Investment)?
Usually , if the business is run professionally , the invested money will be returned to the
investor by the business in 3.5 years. So you can say that ROI is 30 % per annum.
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4. What are the Risk Factors?
After working closely in this industry, I have observed that the TOP risk factor in this
business is Improfessional Management of the business. I will highlight main elements in
this:-
(a) Execution Failure:-
Such a plant calls for detailed steps to get executed in time, with detailed clear-cut duties
explained. If not, there is a mess of things & plant fails to get executed in time, in turn you
will be left with LOSSES.
(b) No Proper Co-ordination:-
After you finalize the plant supplier, failing to do a proper co-ordination with him is the
major reason. Non-appointment of a Project Guy OR not maintaining schedules will result in
delay in execution
(c) No Documentation:-
People go by intuition, without doing proper study on what they have to sell, what market
they have, how are they going about it etc. And they do not keep any documentation about
this. Then misunderstandings and all……
(d) Absence of Parallel execution system :-
It means , at a time you will need to carry out various cycles, absence of this will again
increase project period.
e) Habit of doing everything on your own :-
Keep in mind, you are a businessman, and a businessman delegates, does not do everything.
As an entrepreneur, your job is to get people, tools. And giving the tools to the best people
who are going to do that.
5. How to minimize the Risk Factors ?
I know, 100 % risks can’t be avoided, but can be reduced to a great extent, no doubts. Here is
how you can do it :-
a. Invest in EDUCATION. Just keep eyes around you, there are many people conducting
courses in Packaged Drinking Water Business from time to time. Keep an eye on that. Even
we also do have a Training Course on Packaged Drinking Water . The course is fully online,
has a great content.
A report on establishment of a WATER PURIFICATION PLANT Page 19
The best part is:- It’s delivered through mail, so you can learn at your own pace.
b. Do a proper project execution plan- step by step. Prepare an excel sheet, note down all
duties, steps etc, who to do what, what date etc.
DATA ANALYSIS & INTERPRETATION
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1) Do you drink tap water?
RESPONSE RESPONDENTS PERCENTAGE
YES 28 28%
NO 72 72%
TOTAL 100 100%
GRAPH-1
1. (a) If “NO” Why Not?
28
72
DRINKING TAP WATER
YES
NO
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GRAPH-1.(a)
1. (b) If “YES” how would you rate the quality of your tap water?
RESPONSE RESPONDENTS PERCENTAGE
Taste/Odour 54 54%
Appearance 9 9%
Quality 31 31%
Others (specify) 6 6%
TOTAL 100 100%
RESPONSE RESPONDENTS
Excellent 5
Good 21
Satisfactory 59
Poor 15
TOTAL 100
54
9
31
6
REASON FOR NOT DRINKING TAP WATER
TASTE/ODOUR
APPEARANCE
QUALITY
OTHERS(SPECIFY)
A report on establishment of a WATER PURIFICATION PLANT Page 22
GRAPH-1.(b)
2) Do you use a water filter (PURIFIER) at home for drinking water?
RESPONSE RESPONDENTS PERCENTAGE
YES 74 74%
NO 26 26%
TOTAL 100 100%
5
21
59
15
0
10
20
30
40
50
60
70
Excellent Good Satisfactory Poor
QUALITY RATE
QUALITY RATE
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GRAPH-2
3) Do you buy Packaged Drinking Water (Bottled water)?
RESPONSE RESPONDENTS PERCENTAGE
YES 76 76%
NO 24 24%
TOTAL 100 100%
74
26
USE AT HOME
YES
NO
A report on establishment of a WATER PURIFICATION PLANT Page 24
GRAPH-3
3. (a) If “YES” Why?
RESPONSE RESPONDENTS
76
24
BUY
YES
NO
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GRAPH-3. (a)
4) How frequently do you buy “PACKAGED DRINKING WATER”?
RESPONSE RESPONDENTS PERCENTAGE
Regularly 19 19%
Quite often 61 61%
Occasionally 5 5%
Never 15 15%
Taste/Odour 21
Appearance 19
Quality 60
Others (specify) 0
Total 100
21 19
60
0
0
10
20
30
40
50
60
70
Taste/Odour Appearance Quality Others
(specify)
REASON FOR BUYING PACKAGED DRINKING WATER
REASON FOR BUYING
BOTTLED WATER
A report on establishment of a WATER PURIFICATION PLANT Page 26
TOTAL 100 100%
GRAPH-4
5) What is the size of “PACKAGED DRINKING WATER”
(Bottled Water) that you prefer?
RESPONSE RESPONDENTS
500ml 17
1 litre 61
2 litre 19
5 litre 3
TOTAL 100
19
61
5
15
BUYING HABIT
Regularly
Quite often
Occasionally
Never
A report on establishment of a WATER PURIFICATION PLANT Page 27
17
61
19
3
0
10
20
30
40
50
60
70
500ml 1 litre 2 litre 5 litre
SIZE
SIZE
GRAPH-5
6) How much are you willing to invest to buy a “PACKAGED
DRINKING WATER”?
RESPONSE RESPONDENTS PERCENTAGE
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GRAPH-6
7) Which brand of “PACKAGED DRINKING WATER”
(Bottled Water) do you prefer”?
Less than ₹10 26 26%
₹10 - ₹15 15 15%
₹15 - ₹20 5 55%
More than ₹20 15 4%
TOTAL 100 100%
26
1555
4
INVESTMENT
Less than Rs.10
Rs.10-Rs.15
Rs.15-20
More than Rs.20
A report on establishment of a WATER PURIFICATION PLANT Page 29
GRAPH-7
8) Do you buy Bottled Water more often for home consumption or
socially (e.g. when out travelling)?
RESPONSE RESPONDENTS PERCENTAGE
Bisleri 50 50%
Kinley 15 15%
Bailey 15 15%
Others (specify) 20 20%
TOTAL 100 100%
50
15
15
20
BRAND
Bisleri
Kinley
Bailey
Others (specify)
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GRAPH-8
RESPONSE RESPONDENTS PERCENTAGE
Home Consumption 28 28%
Socially 72 72%
TOTAL 100 100%
28
72
CONSUMPTION
Home Consumption
Socially
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9) Does your household regularly use a recycling scheme provided by
the council/ the State?
RESPONSE RESPONDENTS PERCENTAGE
YES 37 37%
NO 63 63%
TOTAL 100 100%
GRAPH-9
37
63
RECYCLING SCHEME
YES
NO
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10) Do you take empty plastic bottles home to be recycled or put
them in the nearest bin?
RESPONSE RESPONDENTS PERCENTAGE
YES 73 73%
NO 27 27%
TOTAL 100 100%
GRAPH-10
73
27
RECYCLE OR PUT BOTTLE IN BIN
YES
NO
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INTERPRETATION
SAMPLE SIZE- 100
 72% of the respondents do not drink tap water while the remaining 28% of the
respondents prefer tap water.
 54% of the respondents do not drink tap water for its bad taste/odour; while 31% for
its quality, 9% respondent dislike its appearance while the remaining 6% for other
reasons.
 Among those who drink tap water 59% of the respondents feel the water is
satisfactory, while 21% of respondents have rated it as good, 15% of the respondents
think the quality of their tap water is poor and the remaining 5% have rated it
excellent.
 74% respondents (amongst100 people) use a water filter (purifier) at home while the
remaining 26% people do not use a water purifier.
 76% respondents have said that they buy Packaged drinking water or Bottled water
while the remaining 24% respondents do not buy packaged water.
 From among those who buy Packaged drinking water, 60% of the respondents have
said that they buy Packaged water for its Quality, 21% for its taste/odour and the
remaining 19% for its Appearance.
 61% of the respondents buy Packaged drinking water Quite often, 19% Regularly, 5%
Occasionally and the remaining 15% have said Never.
 61% of the respondents prefer a 1 litre bottle, while 19% of respondents for a 2 litre
bottle, 17% for a 500 ml bottle while 3% for a 5 litre bottle.
 55% of the respondents are willing to spend between ₹15-₹20, while 26% are willing
to spend less than ₹10, 15% have preferred a price range between ₹10-₹15 while 4%
more than ₹20.
 50% of the respondents prefer Bisleri as their most trusted Packaged drinking water,
while 15% prefer Kinley and 15% prefer Bailey, while the remaining 20% prefer
Packaged water of other other brands.
 72% of the respondents buy Packaged drinking water when they are out Socially
while the remaining 28% buy for Household consumption.
 63% of the respondents do not use a recycling scheme provided by the Council/Govt
while the remaining 37% respondents regularly use it.
 73% respondents take plastic bottles home that are to be recycled or put them in the
nearest bin while the remaining 27% do not practise such habits.
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RECOMMENDATIONS
The following things need to kept in mind before establishment of a WATER PURIFIER
PLANT.
They are mainly:
 The factory should be set up in a rural area or in the outskirts of the city so that there
is adequate availability of raw materials and other resources.
 The plant layout and structure should be judiciously planned to minimize wastage and
enhance productivity.
 The machinery and other equipments that needs to be set up should be of latest
technology so that it will meet the current requirements.
 The pricing policy of final product should be such that sales is maximised and
customers requirements are met.
 The products should be of a pure standard as prescribed by the laws of the country.
 Capacity Planning is an important thing that the business must adopt before its
establishment.
 There should be availability of skilled employees and sufficient water sources to
enhance efficient production.
 The cost involved in production of Packaged Drinking Water should be such that the
organisation can earn a reasonable margin of profit.
 The Packaging of the product should be eco-friendly and quite attractive so that it
may attract new customers.
 The detailed research should be conducted about the present competitors products and
their strategies and thereby a differentiation strategy may be adopted.
 Quality Assurance should be of utmost priority of any Water Purification Plant.
 The social demands should be met and fair trade practices must be conducted in order
to survive in the industry.
 Environment Concern should be another area of concern that should be considered
prior to establishment so that toxic effluents aren’t discharged into the environment.
A report on establishment of a WATER PURIFICATION PLANT Page 35
CONCLUSION
After all these weeks, it is still difficult to make a global decision, because many people have
different preferences about the use of a treatment plant or individual system (system with
plants or tanks). Decision needs to be made looking into the future and the problems that will
occur in the future. And these problems will especially occur by the use of large treatment
plants.
The energy will become more expensive in the future because the nuclear plants must
disappear before 2025. So using large treatment plants will be more expensive by the use of
large pumps and motors in the plant. The government will probably raise the waste water
treatment costs for the citizens.
These are two reasons which confirm that the usage of treatment plants is not that good in the
future. But there will not be a future without treatment plants because we simply need them.
We cannot place individual treatment facilities in cities for every family, house or apartment
because there is no space to install the facilities. But the quantity and size of plants can be
decreased in the future if more villagers take an individual system. The size of a plant can
hereby be decreased and there will also be less energy consumption of the plant.
People that have the choice between a treatment plant and individual system must look at a
long period. The purchase price is high of an individual system. But they pay less money to
the government. And the purchase price drops a lot if the person can build a system with
plants instead of buying a system with plants from a company. People can use subsidies if
they buy a individual system, but some people must wait a long time before they get these or
do not receive them at all.
So a future without treatment plants is impossible, but we can decrease the size and energy
consumption of these plants if more people use an individual system. This will be
economically better for people that use the individual system and also for people that live in
the cities. Smaller plants are cheaper to build, maintain and uses less energy. Hereby the
government has smaller costs, so people can pay less water treatment costs to the
government.
Small plants are also better for the environment because they need less space and make less
noise.
I hope that everyone that followed my blog has learned a bit about waste water treatment, the
different systems and off course the purpose of waste water purification and influence of the
systems on society and environment.
A report on establishment of a WATER PURIFICATION PLANT Page 36
QUESTIONNAIRE
1) Do you drink tap water?
A) YES
B) NO
 If “NO” Why Not?
a) Taste/Odour. b)Appearance
c) Quality d)Others (specify) __________
 If “YES” how would you rate the quality of your tap water?
a) Excellent b) Good
c)Satisfactory d) Poor
2) Do you use a Water Filter (PURIFIER) at home for drinking water?
a) YES
b) NO
3) Do you buy Packaged Drinking Water?
a) YES
b) NO
 If “YES” Why?
a) Taste/Odour. b)Appearance
c) Quality d)Others (specify) __________
4) How frequently do you buy “PACKAGE DRINKING WATER”?
a) Regularly b)Quite often
c) Occasionally d) Never
A report on establishment of a WATER PURIFICATION PLANT Page 37
5) What is the size of “PACKAGED DRINKING WATER” that you
prefer?
a) 500ml b) 1 litre
c) 2 litre d) 5 litre
6) How much are you willing to invest to buy“BOTTLED WATER”?
a) Less than ₹10 b) ₹10 - ₹15
c) ₹15 - ₹20 d) More than ₹20
7) Which brand of “Bottled water do you prefer”?
a) Bisleri b) Kinley
c) Bailey d) Others (specify) __________
8) Do you buy bottled water more often for home consumption or
socially (e.g. when out travelling)?
a) Home Consumption b) Socially
9) Does your household regularly use a recycling scheme provided for
by the council/ the State?
a) YES b) NO
10)Do you take empty plastic bottles home (for recycling) or put them in
the nearest bin?
a) YES b) NO
Do you have any suggestions?
____________________________________________________

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Establishment a Water Purification Plant- BRMA

  • 1. A REPORT ON ESTABLISHMENT OF A WATER PURIFICATION PLANT Submitted By, PGDM-04 Nilanjan Paul
  • 2. A report on establishment of a WATER PURIFICATION PLANT Page 2 Mineral Water Factory Set up Idea Introduction Mineral Water originally meant water from various natural springs which are thought to be having medicinal and curative value. These spring waters, although contain dissolved chemicals of medicinal properties, also contain harmful micro-organisms. Besides this the underground and surface water is also not potable due to hardness as well as due to presence of toxic substances and Bacteria. This requires suitable treatment and purification to make it safe and potable drinking water with long shelf life. The water is packed in suitable food grade packing generally in PVC or PET Bottles of different capacities. Bottled Mineral Water Plants Demand of Mineral is growing very vastly in town. Mineral water using in every office, party, travel, schools, and home in every city of India. This is the one of the most profitable business in India. Most of people use the Mineral water for drinking now in every city of India. This business is evergreen business. There are many type of plants for every type of budget. You can start bottled mineral water plant as your budget. There are many companies by which you can buy the water treatment plant. That company installs the plant at client’s site. You can buy a bottle packing machine extra for packing the mineral water. This machine comes in different type of capacity. Bottled Mineral Water Plants may establish in a small piece of land. If you have approx 1000 sq. meter you can install a Bottled Mineral Water Plant. You can start this most profitable business in approx Rs. 3-5 lacs. Banks sections loan for this project. Product Water in its pure from is oxide of hydrogen or hydride of Oxygen. It is transparent and colourless liquid with a melting point of 0°C and a boiling point of 100°C. Its refractive index is 1.00 and specific gravity 1.0. Pure water is tasteless, however the presence of minerals and dissolved salts and gases impart taste in the water. Depending upon the quality of Raw water, suitable treatment is given to the water to make it as per the standards and packed in food grade plastic Bottles with label Indicating details of composition, date of bottling, expiry date, quantity etc.
  • 3. A report on establishment of a WATER PURIFICATION PLANT Page 3 Suggested Capacity The minimum economic capacity for the manufacture of Mineral-water is 15000 Bottles per day or 45 Lacs Bottles per year. FACTORS TO BE CONSIDERED BEFORE ESTABLISHMENT Market The Consumption of Bottled Mineral water is linked mainly with tourism industry as the concept has virtually been imported from the western lifestyle. The necessity of safe and hygienic drinking water laid to an increase of it demand in star Hotels, get togethers, conferences and Banquets. The demand for mineral water by the year 2000 is expected to be about 1200 Lakhs Bottles per annum. Parle groups Bisleri and Bailey have about 70% of share of the total market and the balance is shared among other brands. Land & Building The unit requires about 1000 sq. metres of land with covered area of 500 sq.metres and to save on it should be established in the outskirts of the city so that raw materials are available and the cost of production is minimised. Raw Materials The requirement of raw materials for the manufacture of 45 lakh bottles (one litre) of Mineral Water per year is as under:- PVC Bottles : 45 Lakh Nos. HDPE Caps : 45 Lakh Nos. Corrugated Boxes : 3.75 Lakh Nos Customers Needs & Preferences
  • 4. A report on establishment of a WATER PURIFICATION PLANT Page 4 The product or final packaged water should be produced keeping in mind the needs and wants of target customers. A great deal of customer satisfaction should be provided. The Government Regulations The government regulations usually vary from one country to another. This type of business is under the FDA (Federal and Drug Administration). The said entity is responsible for ensuring that the bottled water is safe from procurement and processing. It will also cover the bottling process and finally, the transportation. You have to determine the rules in advance and make sure that you don’t violate anything. By doing so, you will sell pure and consistent bottled water. Never sell tap water, claiming that it is bottled water. Otherwise, Environmental Protection Agency or EPA will sanction your business and may result to a close out. This is a highly competitive industry and you must ensure that you’re marketing water effectively. Identify the weaknesses of your competitors and use it to enhance your business. If you can offer something unique, customers will surely patronize your business. To increase your sales, you can sell bottled water during soccer games, basketball, and other sporting events. You can even maintain an online business site to reach a wider market. Make sure that you provide for a shopping cart to make the buying process easy. You can use the business plan to secure capital for your new business. With the right advertising methods, you can make lots of money.
  • 5. A report on establishment of a WATER PURIFICATION PLANT Page 5 TECHNICAL ASPECTS Processing and Bottling Raw water to be processed is collected in tanks. A known quantity is pumped into the above tank where the water is dozed with alum for coagulation with heavy metals or insoluble matters. The water after coagulation is allowed to settle for an hour. The impurities may be removed by Reverse Osmosis techniques also. The supernatant water is taken to the chlorination tank where primary disinfection is brought about by bubbling chlorine gas. The water is then passed through sand filters for trapping of undisclosed impurities. The water after sand filteration is passed through Carbon filters for removal of odour, colour and also for dechlorination. It is then passed through series of micro fillers comprising 5 micron, 1 micron and 0.4 micron filter followed by ultraviolet disinfection system for terminal disinfection. Packing is done in PET bottles of 1 litre capacity through an automatic rinsing, filling, and capping machine fitted with an Ozone generator. The bottles after capping are shrink wrapped (Optional) and packed in corrugated boxes of one dozen each.
  • 6. A report on establishment of a WATER PURIFICATION PLANT Page 6 Utilities The unit will require a total connected load of 60 KVA and a maximum demand of 50 KVA. Water requirement is about 11 5000 KL per annum. Personnel’s The unit requires to employ about 20 persons including staff for office and factory for production supervision and administration. Quality Control and Standards The plain drinking water has to be bottled in pet bottle as per IS Specifications (IS:14543:1998: Packaged Drinking Water and IS:13428:1998: Packaged Mineral Water). The details of the specification can be obtained from Bureau of Indian Standard, Manak Bhawan, 9, Bahadur Shah Zafar Marg, New Delhi 110002.
  • 7. A report on establishment of a WATER PURIFICATION PLANT Page 7 Manufacturing Process Raw water is purified by passing it through sand filter and Activated carbon filter. Excess hardness is reduced by softner and the softened water is passed through micron filters to make it sparkling clear. To make it bacteria free this water is passed through ultraviolet light radiation. Packing of the water is done by Bottling System comprising of the facilities of Bottling system comprising of the facilities of Bottle rinsing, Filling and capping, Bottled mineral water is packed in the cartons. Plant & Machinery Raw water pump Sand filter Activated carbon filter Softener Micron Filteration system Ultra Violet System Water Storage Tanks Automatic bottle Rinsing, filling and Capping line.
  • 8. A report on establishment of a WATER PURIFICATION PLANT Page 8 Pollution Control Although this unit will not affect the environment, but the entrepreneurs are advised to obtain, No Objection Certificate from competent authority of State Pollution Control Board. They should develop Kitchen Garden in the factory premises to utilise waste water from the plant. Energy Conservation
  • 9. A report on establishment of a WATER PURIFICATION PLANT Page 9 Suitable measures should be adopted to use appropriate amount of fuel and electricity. The promoters should arrange periodic auditing of electrical consumption, as the unit will be running in three shifts. 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 electrical power during day hours. Licensing Requirements The following licenses/ approvals are to be obtained for setting up a packaged drinking water plant in India:  Small scale industries registration  ISI certification from Bureau of Indian Standards (BIS)  Pollution control certificate  Water test report from an authorized laboratory of raw water  Pest control certification  Certificates from chemist, microbiologist  Medical certificates for workers  No objection certificate (NOC) from Gram Panchayat, if applicable  Registration of trademark  Documents related to ownership of land/lease of land for setting up the plant  Memorandum of association of companies/partnership deed, if applicable.  Electrical load sanction  Sanction layout plan
  • 10. A report on establishment of a WATER PURIFICATION PLANT Page 10 THE FACTORY LAYOUT MODEL THAT MAY BE ADOPTED
  • 11. A report on establishment of a WATER PURIFICATION PLANT Page 11 REQUIREMENTS
  • 12. A report on establishment of a WATER PURIFICATION PLANT Page 12 2000 LPH Std Plant 2000 LPH Economy Plant Just Jars Plant Notable Points Most Feasible Bottle Cost High as No Blowing Facility Focussed , but not equipped to handle all types of demands List of Machinery 1. Water Treatment Plant 2. Bottle Blowing Unit 3. Bottle Filling Machine 30 BPM Auto 4. Pouch Packing Machine 5. Ink Jet Coder 1. Water Treatment Plant 2. Bottle Filling Machine 18 BPM Semi Auto 3. Pouch Packing Machine 1. Water Treatment Plant 2. Jar Rinse-Fill-Capping Machine [Auto] Machinery – 40 Lakhs 26 Lakhs 20 Lakhs Building Cost Calculated @ Rs.800/- per Sq ft. 3000 Sft ( 24 Lakhs) 2000 Sft ( 16 Lakhs ) 2000 Sft ( 16 Lakhs) Description Bottles, Jar, Pouch , with Bottle Making Machine also. Bottle, Jar, Pouch , WITHOUT Bottle Making Machine Just 20 Ltr Jar Filling Line Manpower Moderate , 3 Managerial,7 Workers Moderate , 2 Managerial,6 Workers Moderate , 1 Managerial,5 Workers FINANCIAL PLANNING ASPECTS Estimated cost of the project The project cost for setting up a unit a manufacturer of (45 lakh Bottles) per annum is estimated as follows:
  • 13. A report on establishment of a WATER PURIFICATION PLANT Page 13 1. Land & site development 4, 50,000 2. Building 10, 70,000 3. Plant & machinery 23, 50,000 4. Technical know-how & engineering fees 30,000 5. Other misc. fixed assets 6, 00,000 6. Preliminary & preoperative expenses 6, 00,000 7. Margin money for working capital 5, 00,000 8. Contingencies 4, 00,000 TOTAL 60,00,000 Suggested Means of Financing 1. Long term loan 43, 00,000 2. State cash subsidy 6, 50,000 3. Promoters capital 10, 50,000 TOTAL 60,00,000 Below are the Cost and the Profit Margin: Cost of Production/250 ml Pouch Sr. No. Description Cost [Rs.] 1. Empty Pouch with Printing 0.14
  • 14. A report on establishment of a WATER PURIFICATION PLANT Page 14 2. Water Cost 0.02 3. Transportation 0.02 4. Misc Cost 0.03 5. Interest on Capital 0.03 6. Operating Cost 0.23 7. Selling Cost 0.35 Margin 0.12 Production/ 1 Litre Bottle Sr. No. Description Cost [Rs.] 1. Cost of Bottle + Cap 2.90 2. Shrink Label 0.30 3. Shrink Cap 0.80 4. R.O. Water 0.16 5. Misc Cost 0.10 6. packing Cost 0.20 7. Interest on Capital 0.05 8. Operating Cost 3.79 9. Selling Cost 5.50 Margin 1.71 Cost of Production/20 Litre Jar Sr. No. Description Cost [Rs.] 1. Cost of Water 0.60 2. Cost of Maintenance 1.00 3. Transportation 1.00 4. Interest on Capital 0.60 5. Misc. Cost 0.40 6. Operating Cost 3.60 7. Selling Cost 20.00 Margin 16.40 FORMS OF FINAL PRODUCTS
  • 15. A report on establishment of a WATER PURIFICATION PLANT Page 15 BASIS AND PRESUMPTIONS This project has been drawn on the basis of following presumptions. 1) Working hours : 8 per shift
  • 16. A report on establishment of a WATER PURIFICATION PLANT Page 16 2) Number of : 3 shift/day 3) Number of : 300 Working days per annum 4) Total number of : 72 working hours 5) Working : 75% efficiency 6) Total period for : Third year achieving from maximum the date of capacity commencement utilisation of production. 7) Margin money : 25% of Capital Investment 8) Rate of Interest : 15% per annum of Capital 9) Construction Cost of Building, Cost of Land, Labour Charges and Cost of Plant, Machinery and Equipment have been considered as per prevailing rates in the market. 10) Cost of Installation and Electrification of Machinery and Equipment has been taken at the rate of 10% of the cost of Plant and Machinery. 11) Operative period of the project has been considered as 7 years. IMPLEMENTATION SCHEDULE It is expected that total time of about 9 months will be taken from the date of approval of the scheme for complete implementation. Break-up of the activities and relative time for each of them is shown below: Nature of Time Period Activity (in months) 1). Preparation of Project 0-1 month and its approval 2). SSI Provisional 1-3 months Registration 3). Sanction of Loan 2-5 months 4). Clearance from 2-5 months Pollution Control Board and taking permission from Municipal Health Authority/BIS etc. 5). Placement Order for 4-6 months machinery of equipment 6). Installation of machinery 6-8 months. 7). Power connection 2-6 months arrangement from Electricity Board. GENERAL MANAGEMENT QUESTIONS PRIOR TO ESTABLISHMENT
  • 17. A report on establishment of a WATER PURIFICATION PLANT Page 17 1. What is the Profit Margin? This states that after a period of time what is the total margin that the firm would be earning after conducting several business operations. 2. How much is the investment? The investment truly depends upon the type of plant & the Capacity of plant Let me explain this in details. • Type of Plant : Some people may look at a prosperous Jar Market, at the same time some other may feel that they should go for bottles, jars & Pouches. Some of you may feel that they will start with just bottle filling. Empty Bottles bought out where as some will want to have complete bottle making Set as well. So the decision of “Which type of Plant” Truly depends upon your targeted Market segments. Once you decide what to have in your product mix, you can decide the machinery and other things. To get an idea of how to decide the plant Capacity. Now to arrive at the Mineral Water Plant Cost. These are the elements which are combined each other.  Machinery & Equipment All machines like Water Treatment, Bottling, Lab equipment etc. will come under this. • Utilities: Water Electricity Air Conditioning, air Compressor etc. • Liaison Expenses : ISI License & other Government License expenditure. • Consultancy Charges : Like ISI Consultancy project funding etc. • Building Cost : Construction, interior cost 3. How much is the ROI (Return on Investment)? Usually , if the business is run professionally , the invested money will be returned to the investor by the business in 3.5 years. So you can say that ROI is 30 % per annum.
  • 18. A report on establishment of a WATER PURIFICATION PLANT Page 18 4. What are the Risk Factors? After working closely in this industry, I have observed that the TOP risk factor in this business is Improfessional Management of the business. I will highlight main elements in this:- (a) Execution Failure:- Such a plant calls for detailed steps to get executed in time, with detailed clear-cut duties explained. If not, there is a mess of things & plant fails to get executed in time, in turn you will be left with LOSSES. (b) No Proper Co-ordination:- After you finalize the plant supplier, failing to do a proper co-ordination with him is the major reason. Non-appointment of a Project Guy OR not maintaining schedules will result in delay in execution (c) No Documentation:- People go by intuition, without doing proper study on what they have to sell, what market they have, how are they going about it etc. And they do not keep any documentation about this. Then misunderstandings and all…… (d) Absence of Parallel execution system :- It means , at a time you will need to carry out various cycles, absence of this will again increase project period. e) Habit of doing everything on your own :- Keep in mind, you are a businessman, and a businessman delegates, does not do everything. As an entrepreneur, your job is to get people, tools. And giving the tools to the best people who are going to do that. 5. How to minimize the Risk Factors ? I know, 100 % risks can’t be avoided, but can be reduced to a great extent, no doubts. Here is how you can do it :- a. Invest in EDUCATION. Just keep eyes around you, there are many people conducting courses in Packaged Drinking Water Business from time to time. Keep an eye on that. Even we also do have a Training Course on Packaged Drinking Water . The course is fully online, has a great content.
  • 19. A report on establishment of a WATER PURIFICATION PLANT Page 19 The best part is:- It’s delivered through mail, so you can learn at your own pace. b. Do a proper project execution plan- step by step. Prepare an excel sheet, note down all duties, steps etc, who to do what, what date etc. DATA ANALYSIS & INTERPRETATION
  • 20. A report on establishment of a WATER PURIFICATION PLANT Page 20 1) Do you drink tap water? RESPONSE RESPONDENTS PERCENTAGE YES 28 28% NO 72 72% TOTAL 100 100% GRAPH-1 1. (a) If “NO” Why Not? 28 72 DRINKING TAP WATER YES NO
  • 21. A report on establishment of a WATER PURIFICATION PLANT Page 21 GRAPH-1.(a) 1. (b) If “YES” how would you rate the quality of your tap water? RESPONSE RESPONDENTS PERCENTAGE Taste/Odour 54 54% Appearance 9 9% Quality 31 31% Others (specify) 6 6% TOTAL 100 100% RESPONSE RESPONDENTS Excellent 5 Good 21 Satisfactory 59 Poor 15 TOTAL 100 54 9 31 6 REASON FOR NOT DRINKING TAP WATER TASTE/ODOUR APPEARANCE QUALITY OTHERS(SPECIFY)
  • 22. A report on establishment of a WATER PURIFICATION PLANT Page 22 GRAPH-1.(b) 2) Do you use a water filter (PURIFIER) at home for drinking water? RESPONSE RESPONDENTS PERCENTAGE YES 74 74% NO 26 26% TOTAL 100 100% 5 21 59 15 0 10 20 30 40 50 60 70 Excellent Good Satisfactory Poor QUALITY RATE QUALITY RATE
  • 23. A report on establishment of a WATER PURIFICATION PLANT Page 23 GRAPH-2 3) Do you buy Packaged Drinking Water (Bottled water)? RESPONSE RESPONDENTS PERCENTAGE YES 76 76% NO 24 24% TOTAL 100 100% 74 26 USE AT HOME YES NO
  • 24. A report on establishment of a WATER PURIFICATION PLANT Page 24 GRAPH-3 3. (a) If “YES” Why? RESPONSE RESPONDENTS 76 24 BUY YES NO
  • 25. A report on establishment of a WATER PURIFICATION PLANT Page 25 GRAPH-3. (a) 4) How frequently do you buy “PACKAGED DRINKING WATER”? RESPONSE RESPONDENTS PERCENTAGE Regularly 19 19% Quite often 61 61% Occasionally 5 5% Never 15 15% Taste/Odour 21 Appearance 19 Quality 60 Others (specify) 0 Total 100 21 19 60 0 0 10 20 30 40 50 60 70 Taste/Odour Appearance Quality Others (specify) REASON FOR BUYING PACKAGED DRINKING WATER REASON FOR BUYING BOTTLED WATER
  • 26. A report on establishment of a WATER PURIFICATION PLANT Page 26 TOTAL 100 100% GRAPH-4 5) What is the size of “PACKAGED DRINKING WATER” (Bottled Water) that you prefer? RESPONSE RESPONDENTS 500ml 17 1 litre 61 2 litre 19 5 litre 3 TOTAL 100 19 61 5 15 BUYING HABIT Regularly Quite often Occasionally Never
  • 27. A report on establishment of a WATER PURIFICATION PLANT Page 27 17 61 19 3 0 10 20 30 40 50 60 70 500ml 1 litre 2 litre 5 litre SIZE SIZE GRAPH-5 6) How much are you willing to invest to buy a “PACKAGED DRINKING WATER”? RESPONSE RESPONDENTS PERCENTAGE
  • 28. A report on establishment of a WATER PURIFICATION PLANT Page 28 GRAPH-6 7) Which brand of “PACKAGED DRINKING WATER” (Bottled Water) do you prefer”? Less than ₹10 26 26% ₹10 - ₹15 15 15% ₹15 - ₹20 5 55% More than ₹20 15 4% TOTAL 100 100% 26 1555 4 INVESTMENT Less than Rs.10 Rs.10-Rs.15 Rs.15-20 More than Rs.20
  • 29. A report on establishment of a WATER PURIFICATION PLANT Page 29 GRAPH-7 8) Do you buy Bottled Water more often for home consumption or socially (e.g. when out travelling)? RESPONSE RESPONDENTS PERCENTAGE Bisleri 50 50% Kinley 15 15% Bailey 15 15% Others (specify) 20 20% TOTAL 100 100% 50 15 15 20 BRAND Bisleri Kinley Bailey Others (specify)
  • 30. A report on establishment of a WATER PURIFICATION PLANT Page 30 GRAPH-8 RESPONSE RESPONDENTS PERCENTAGE Home Consumption 28 28% Socially 72 72% TOTAL 100 100% 28 72 CONSUMPTION Home Consumption Socially
  • 31. A report on establishment of a WATER PURIFICATION PLANT Page 31 9) Does your household regularly use a recycling scheme provided by the council/ the State? RESPONSE RESPONDENTS PERCENTAGE YES 37 37% NO 63 63% TOTAL 100 100% GRAPH-9 37 63 RECYCLING SCHEME YES NO
  • 32. A report on establishment of a WATER PURIFICATION PLANT Page 32 10) Do you take empty plastic bottles home to be recycled or put them in the nearest bin? RESPONSE RESPONDENTS PERCENTAGE YES 73 73% NO 27 27% TOTAL 100 100% GRAPH-10 73 27 RECYCLE OR PUT BOTTLE IN BIN YES NO
  • 33. A report on establishment of a WATER PURIFICATION PLANT Page 33 INTERPRETATION SAMPLE SIZE- 100  72% of the respondents do not drink tap water while the remaining 28% of the respondents prefer tap water.  54% of the respondents do not drink tap water for its bad taste/odour; while 31% for its quality, 9% respondent dislike its appearance while the remaining 6% for other reasons.  Among those who drink tap water 59% of the respondents feel the water is satisfactory, while 21% of respondents have rated it as good, 15% of the respondents think the quality of their tap water is poor and the remaining 5% have rated it excellent.  74% respondents (amongst100 people) use a water filter (purifier) at home while the remaining 26% people do not use a water purifier.  76% respondents have said that they buy Packaged drinking water or Bottled water while the remaining 24% respondents do not buy packaged water.  From among those who buy Packaged drinking water, 60% of the respondents have said that they buy Packaged water for its Quality, 21% for its taste/odour and the remaining 19% for its Appearance.  61% of the respondents buy Packaged drinking water Quite often, 19% Regularly, 5% Occasionally and the remaining 15% have said Never.  61% of the respondents prefer a 1 litre bottle, while 19% of respondents for a 2 litre bottle, 17% for a 500 ml bottle while 3% for a 5 litre bottle.  55% of the respondents are willing to spend between ₹15-₹20, while 26% are willing to spend less than ₹10, 15% have preferred a price range between ₹10-₹15 while 4% more than ₹20.  50% of the respondents prefer Bisleri as their most trusted Packaged drinking water, while 15% prefer Kinley and 15% prefer Bailey, while the remaining 20% prefer Packaged water of other other brands.  72% of the respondents buy Packaged drinking water when they are out Socially while the remaining 28% buy for Household consumption.  63% of the respondents do not use a recycling scheme provided by the Council/Govt while the remaining 37% respondents regularly use it.  73% respondents take plastic bottles home that are to be recycled or put them in the nearest bin while the remaining 27% do not practise such habits.
  • 34. A report on establishment of a WATER PURIFICATION PLANT Page 34 RECOMMENDATIONS The following things need to kept in mind before establishment of a WATER PURIFIER PLANT. They are mainly:  The factory should be set up in a rural area or in the outskirts of the city so that there is adequate availability of raw materials and other resources.  The plant layout and structure should be judiciously planned to minimize wastage and enhance productivity.  The machinery and other equipments that needs to be set up should be of latest technology so that it will meet the current requirements.  The pricing policy of final product should be such that sales is maximised and customers requirements are met.  The products should be of a pure standard as prescribed by the laws of the country.  Capacity Planning is an important thing that the business must adopt before its establishment.  There should be availability of skilled employees and sufficient water sources to enhance efficient production.  The cost involved in production of Packaged Drinking Water should be such that the organisation can earn a reasonable margin of profit.  The Packaging of the product should be eco-friendly and quite attractive so that it may attract new customers.  The detailed research should be conducted about the present competitors products and their strategies and thereby a differentiation strategy may be adopted.  Quality Assurance should be of utmost priority of any Water Purification Plant.  The social demands should be met and fair trade practices must be conducted in order to survive in the industry.  Environment Concern should be another area of concern that should be considered prior to establishment so that toxic effluents aren’t discharged into the environment.
  • 35. A report on establishment of a WATER PURIFICATION PLANT Page 35 CONCLUSION After all these weeks, it is still difficult to make a global decision, because many people have different preferences about the use of a treatment plant or individual system (system with plants or tanks). Decision needs to be made looking into the future and the problems that will occur in the future. And these problems will especially occur by the use of large treatment plants. The energy will become more expensive in the future because the nuclear plants must disappear before 2025. So using large treatment plants will be more expensive by the use of large pumps and motors in the plant. The government will probably raise the waste water treatment costs for the citizens. These are two reasons which confirm that the usage of treatment plants is not that good in the future. But there will not be a future without treatment plants because we simply need them. We cannot place individual treatment facilities in cities for every family, house or apartment because there is no space to install the facilities. But the quantity and size of plants can be decreased in the future if more villagers take an individual system. The size of a plant can hereby be decreased and there will also be less energy consumption of the plant. People that have the choice between a treatment plant and individual system must look at a long period. The purchase price is high of an individual system. But they pay less money to the government. And the purchase price drops a lot if the person can build a system with plants instead of buying a system with plants from a company. People can use subsidies if they buy a individual system, but some people must wait a long time before they get these or do not receive them at all. So a future without treatment plants is impossible, but we can decrease the size and energy consumption of these plants if more people use an individual system. This will be economically better for people that use the individual system and also for people that live in the cities. Smaller plants are cheaper to build, maintain and uses less energy. Hereby the government has smaller costs, so people can pay less water treatment costs to the government. Small plants are also better for the environment because they need less space and make less noise. I hope that everyone that followed my blog has learned a bit about waste water treatment, the different systems and off course the purpose of waste water purification and influence of the systems on society and environment.
  • 36. A report on establishment of a WATER PURIFICATION PLANT Page 36 QUESTIONNAIRE 1) Do you drink tap water? A) YES B) NO  If “NO” Why Not? a) Taste/Odour. b)Appearance c) Quality d)Others (specify) __________  If “YES” how would you rate the quality of your tap water? a) Excellent b) Good c)Satisfactory d) Poor 2) Do you use a Water Filter (PURIFIER) at home for drinking water? a) YES b) NO 3) Do you buy Packaged Drinking Water? a) YES b) NO  If “YES” Why? a) Taste/Odour. b)Appearance c) Quality d)Others (specify) __________ 4) How frequently do you buy “PACKAGE DRINKING WATER”? a) Regularly b)Quite often c) Occasionally d) Never
  • 37. A report on establishment of a WATER PURIFICATION PLANT Page 37 5) What is the size of “PACKAGED DRINKING WATER” that you prefer? a) 500ml b) 1 litre c) 2 litre d) 5 litre 6) How much are you willing to invest to buy“BOTTLED WATER”? a) Less than ₹10 b) ₹10 - ₹15 c) ₹15 - ₹20 d) More than ₹20 7) Which brand of “Bottled water do you prefer”? a) Bisleri b) Kinley c) Bailey d) Others (specify) __________ 8) Do you buy bottled water more often for home consumption or socially (e.g. when out travelling)? a) Home Consumption b) Socially 9) Does your household regularly use a recycling scheme provided for by the council/ the State? a) YES b) NO 10)Do you take empty plastic bottles home (for recycling) or put them in the nearest bin? a) YES b) NO Do you have any suggestions? ____________________________________________________