Every day, millions of Nigerians use large amounts of pure water. For anyone wishing to launch a sachet or pure water business in Nigeria, the product’s high daily usage rate may make it an alluring investment prospect.
Because of the country’s growing population and the government’s incapacity to supply affordable, safe drinking water, Nigeria has a thriving clean water industry.
In some parts of Nigeria, there is a shortage of clean drinking water, thus it makes financial sense to build a pure water plant. Nigeria’s clean water sector is quite profitable, but it requires a large initial investment.
I can assure you that if you set up your business appropriately and employ a clever marketing strategy, you will turn a profit if you want to establish a pure water business in Nigeria.
The Profit Potential of the Pure Water Production Business
Assuming you can afford to have a single delivery van to transport your goods and that you have a single piece of automatic sealing equipment to make your sachet water, One automated device (operating at full capacity) produces 40 sachets per minute, or 2,400 sachets in an hour; this is equal to 120 bags in an hour.
Let’s wrap up by saying that, assuming you could work four hours a day, you could generate 100 bags on average in an hour. For example, a single machine may produce 400 bags of clean water in a day. It all depends on you (really, an average sachet water factory in Nigeria nowadays produces between 700 and 800 bags per machine in a day).
Continuing with our supposition that 400 bags are sold each day at a price between N70 and N80 per bag, We can thus suppose that each bag costs N70. 400 bags x N70 per bag = N28, 000 each day. A month’s worth of N28, 000 divided by 28 working days equals N784, 000. See what happens: N784, 000 times 12 months in a year equals N9, 408,000.
Other Reasons To Invest In Sachet Water Production Business
The following are some of the reasons you might want to think about launching a clean water company in Nigeria:
- Every Nigerian home needs access to clean drinking water, but the government has failed to supply it. Thus, each person must provide for themselves, and purchasing pure sachet water is among the most sensible choices.
- The necessity for individuals to drink more water and the demand for sachet water products grow as the population does.
- There won’t come a time when people give up drinking water. It is indeed one of the most utilized natural resources on the planet and one of the most important consumption products.
- There is currently no close equivalent for sachet water in Nigeria, where the majority of people are too impoverished to use the more expensive bottled water.
- There are always going to be people to provide. The number of sachet water customers increases with the number of producers.
- Even in Nigeria’s towns and villages, sachet water is becoming alarmingly more and more popular.
- Even the poorest person on the planet may afford to get pure water due to its low cost.
- Since it is a significant source of funding for the government, more producers are being encouraged.
Steps to Start a Pure Water Business
Before launching a pure water business in Nigeria, there are a few crucial factors to take into account, just like with any other business. There are a lot of rival makers and sellers on the market today.
These numbers, however, won’t make you lose interest—rather, they’ll present you with a challenge to become the industry leader in terms of brand recognition. Here’s a detailed guide on how to launch a pure water company in Nigeria.
#1. Have A Business Plan
Your business plan is a written document that details your operational goals and strategies, as well as how you wish to establish a business. Your company’s strategy and the plan you have for achieving your objectives need to be carefully considered.
The company’s goals, objectives, and strategies for accomplishing them are outlined in a strong business plan. It comprises price structure, risk analysis, market research and analysis, cost analysis, and future forecasting. If you follow through on all of these, obtaining cash from investors should be a breeze.
The business plan is a flexible document that you may update as your business grows. To help you with the plan drafting process, you could hire a qualified consultant.
#2. Get Funding
Any company that wants to operate needs capital. The pure water or bottled business requires a significant investment, depending on the scale at which it is to be operated.
The price of land, building construction, drilling boreholes, vans, distillation equipment, tanks, and other expensive machinery required to operate the business are additional cost factors to take into account.
You need to have enough money or assets that can be turned into cash if you want to launch a clean water company in Nigeria. Asking friends and relatives for soft loans is another way to raise money. Develop your ability to make an investor pitch. It will support your financing application.
#3. File a Business Registration with NAFDAC
In Nigeria, registering your company is a prerequisite for beginning a clean water business. All food and drug companies, as well as those that manufacture alcoholic drinks, are required to register with the relevant government body.
The quality of packaged water in Nigeria is observed by the National Agency for Food and Drug Administration and Control (NAFDAC). Food production, pharmaceuticals, cosmetics, medical equipment, chemicals, detergents, medical services, and consumables are all under its supervision and control.
The gradual process of obtaining NAFDAC clearance could take longer if certain steps are not followed correctly. Additionally, you can register on NAFDAC for the certificate and inspection.
#4. Choose An Appropriate Site
In Nigeria, you need to establish a plant in order to launch a pure water company. This implies that you will need to purchase land, and the option of building or leasing your factory will rely on your financial situation. For simplicity of production, the structure—regardless of size—must follow the standard industrial design.
The layout includes a general office, a room for producing water, a room for storing materials, a restroom, a changing/cloakroom, and a laboratory. Additionally, confirm that there is no air or water contamination at the production location. You have to make sure the factory has a reliable power supply. The plant ought to be situated in a secure area with a good transportation system.
You need to either dig a borehole or work with companies that produce water. Water needs to be easily accessible since it is a raw item utilized in the clean water business.
#5. Establish the Facilities That Are Required
Establishing a pure water production business will require an above tank and a backup reservoir. Next, get ready for your regular water treatment. If you want to launch a pure water business in Nigeria, water treatment is essential. I will thus go over how to install a water purification system.
#6. Put in a water purification system
This is the process of purging water of undesirable chemicals, biological contaminants, suspended particles, and gases. To make water safe to drink, this is done.
Depending on the launching capacity of the firm, reverse osmosis, ultraviolet sterilization, or large-scale distillation equipment are the water purification methods used when starting a clean water business in Nigeria.
#7. Recruitment
Let’s say you want to launch a pure water company in Nigeria. If so, you are well aware that working alone is not an option; you must collaborate with others, which is why hiring is crucial when launching a pure water company in Nigeria.
Learning the pros and cons of outsourcing in business is needed here. Machine operators, cleaners, drivers, department heads, security guards, managers, and cashiers are among the people you must hire.
#8. Advertising
Every business has a market strategy. Before you start distributing, learn to analyze the market. Always arrive early to serve consumers or stores so they can sell your stuff to their patrons. Before extending credit to them, make cautious to check their creditworthiness. If not, they might bar you from working for them.
Water is a need, thus you need to have a large clientele, including friends, acquaintances, restaurants, hostels for students, pharmacists, street sellers, store owners, and market stalls.
Who Are the Sachet Water Consumers
It is utilized for events and celebrations, is widely accepted by both the rich and the poor, and actually does not make a difference between the consumers.
- Saline water has no adverse consequences and is not regulated by law or religious doctrine, in contrast to alcohol and certain other consumables.
- It takes less initial capital to set up than other factories. You can do anything with five to ten million naira, and you will get your money back.
- The product has a ready-made market. Produce is one of the few products on the market that doesn’t need much marketing to get acceptance because nature has already given it permission.
- Less than six months will pass before the business’s investment is repaid. It’s a business that you can safely apply for a financing to launch with complete confidence that it will be profitable.
- The ROI (return on investment) is higher than 50% and might rise as the company expands.
- Water is a free gift from nature, thus it doesn’t require regular procurement of raw materials for manufacture.
Cons Of The Pure Water Business
Every business has challenges, but you may overcome them by doing extensive market research beforehand.
I’ll go over a few problems that could arise if you launch a pure water company in Nigeria:
#1. Failure to Make Sales on Time
There is a deadline for the manufactured water, and as that day draws near, buyers will no longer be interested in buying such pure water.
#2. Fluctuation in Production Costs
The cost of clean water never changes, while the cost of materials like nylon and petroleum can increase at any time. Profit will be decreased, and production costs will rise as a result.
#3. Maintenance
The majority of the vehicles used for the distribution of pure water are in bad condition, if you look closely. This is a result of the strain and abuse they endure. The car needs to be maintained, and you should hire a qualified mechanic to do routine maintenance on it.
In addition, you have to maintain the many tools and machinery used in the production process, like pumping machines, generators, and sealing machines.
#4. Vigorous rivalry
The water sector is highly competitive. Items from other manufacturers may occasionally be received by your customers for a variety of reasons.
Always treat your staff with respect if you want to guarantee that your products are sold in the market every day.
One successful strategy for launching a pure water factory in Nigeria is to place your goods in high-traffic regions. For instance, you can look for a meal canteen that serves water every day.
#5. Insufficient electrical supply
Establishing a pure water company in Nigeria is not encouraged by the country’s current political climate. You will therefore need to obtain two power sources. This raises operational costs because the manufacturing of pure water needs constant lighting. Using a good generator will ensure that you don’t have any problems when the power provider cuts the lights.
How Much Can I Use to Start Pure Water Business in Nigeria?
Depending on your location and the equipment you desire, starting a clean water production in Nigeria requires a capital of 5 million to 15 million Naira.
Is Water Business a Good Business?
Because bottled water is seen as healthy in addition to providing safe drinking water, this type of business is extremely profitable. Whether the firm is to be established in an urban or rural area, Nigerian water businesses must first select a suitable location.
Why is Selling Pure Drinking Water Big Business?
As one might anticipate for something so necessary, pure water is among the most widely consumed drinks available. People who are health aware or do not have access to untreated drinking water are particularly fond of it. However, there are additional benefits to pure water, such convenience.
Which Machines Are Used for Purifying Water?
Machinery for reverse osmosis. These ones use semi-permeable reverse osmosis membranes and osmotic pressure to filter water.
How Many Sachets Are in a Bag of Pure Water?
There are twenty pure water sachets in each. Pure Water Sachet (50 cl x 20) Bag.
In summary
In Nigeria, launching a pure water company can be quite profitable, but it also requires a fair amount of money, perseverance, and enthusiasm.
To start a clean water business in Nigeria, a start-up capital of roughly three million naira is needed, and you are set to go.
This is merely a guide, the size of the company defines the scope of operations, the investment in cash, human capital, and machines.
- WHAT IS INDUSTRY 4.0? An Extremely Simple Explanation For Anyone
- TOP BOTTLED WATER BRANDS IN 2023: Best Spring, Alkaline & Glass Water Brands
- How To Earn Money Directly To Bank Account In Nigeria
- Marketing Management In Nigeria
- PRODUCTION WORKER: Meaning, Duties, Qualifications, Salary & Resume
References
