BUSINESS: ENTERTAINMENT: NEWS

Establishing a Pure (Sachet) water Business in Lagos

Last Updated: July 21, 2014 at 2:30 PM
Category: Business and Consultancy Services

By Adedayo Charles Kunle

(Business Consultant For ACKCITY Enterprises)


Introduction


It is important to note that most people these days are seeking for business which they can do and yield profits in a short period of time. 


However every businessman must note that no business ever comes easy as it may sound. For you to succeed in any business endeavor, you must put in your best into it and do a proper analysis, budgeting, costing, profit etc, before going into any business at all.


It is not different for the pure water or sachet water business. As a matter of fact, the pure water business requires more time from the investor, unless if he or she is willing to get the service of a consultant to help him or her run the pure water factory.


One thing you cannot be afraid of  in running a pure water business is "lose". As long as you have put into place all the basic necessity for your factory, which includes, a good factory set-up, good machines (sealing and purification), proper staffing and management, then in no time, you should be smiling to the bank.


You know why? The demand for drinking water doesn’t to go down, people drink water in all seasons, so you needn't fear that your market value would go down. The only thing that can make your market value to go down is improper planning. 


To have a good pure water factory that will bring you profitably in a short period of time, we have put this article up for your use.


If you need further information, consultancy services to help you put up your pure water factory, please feel free to call: 08088538618 or e-mail admin@ackcity.net.


What do you need to get started?


  1. Factory site (must not be located near a cemetery, refuse dump, fuel depot, septic tanks and pit latrines) 
  2. Register your business name
  3. Sink a borehole
  4. Install overhead tanks (a reservoir to supply water to the distillation system)
  5. Install distillation system
  6. Get NAFDAC registration 
  7. Automatic sealing machine (get the one that can seal about 40 sachets per minute
  8. Nylon materials
  9. Logo and product name printed on nylon material
  10. Labor
  11. Operator (1) for a start
  12. Driver (1) for a start
  13. Motor Boys (2)
  14. Packer (2)
  15. Cleaner (1)
  16. Truck for distribution
  17. Power Generating set- 25KVA
  18. Running cost of between N 200,000 or thereabout for six months running


Start-up Costs


  1. Factory site (4 bedroom bungalow) must be fenced around Lagos area: N400,000 to N450,000 annually
  2. Business registration with CAC: N25,000 –N30,000 annually
  3. Overhead tank: Between N25,000 and N30,000 (Please check this link for various tanks and for possible purchase: http://www.alibaba.com/showroom/overhead-tank.html, http://www.alibaba.com/showroom/price-distillation-equipment.htm
  4. Borehole: N250,000 in Lagos 
  5. NAFDAC Requirements
  6. Automatic sealing machine: Please see various types and the prices
  7. Nylon materials: (This will be contracted to a maker; the first price is usually more because of the designing and printing of logo)
  8. Printing names and logo on nylon
  9. Labor:


  1. Operator (1) for a start: between N10,000 to N15,000 monthly
  2. Driver (1) for a start: N2,000 per loading
  3. Motor Boys (2) : N1,500 per loading
  4. Packer (2): N1,500 per packing
  5. Cleaner (1): N9,000  to N12,000 per month
  6. Truck (Tokunbo): N900,000 to N1million (This price is not fixed, you can ask a car dealer for price list of trucks)
  7. Power Generating set: (There are several makers which determine the price, check this link for price list: http://www.alibaba.com/showroom/25kva-diesel-generator-price.html)


Sales

One automatic sealing machine and one delivering van at 100% utilization will produce 40 sachets of pure water per minute which is equivalent to 120 bags in one hour.


You can produce between 500 to 700 bags with one machine in a day if your operators work  for 4-5 hours per day.


If for instance:


A bag is sold for N60 (Factory cost)

500 bags X N60 per bag = N30,000 per day

N30,000 X 28 working days = N840,000

One year = N840,000 X 12= N10,080,000


We used the factory price for Lagos. We have not researched the cost of bags in other states of the country. This information is to help you understand the basis of setting up a pure water factory.


Note: ACKCITY Enterprises does not sell pure water machines, but we help clients to make purchase which are imported from China.


If you need further information, consultancy services to help you put up your pure water factory, please feel free to call: 08088538618 or e-mail admin@ackcity.net.

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