Sachet water production (pure water as it is popularly called in Nigeria) is a very profitable business if you can manage it well. Hundreds of millions of sachets are consumed everyday, and the demand of pure water supply is always on the rise. The reason is because the population keeps increasing. Go to any major city in Nigerian and you will see how the streets are littered with empty sachets of pure water. This is the testimony to the quantity that is consumed everyday.
A smart investor knows that the best product to deal with is the product that is in high demand. That automatically placed pure water production business as one of the best choice for Investors. The demand isn’t going down very soon as sachet water has become the most credible alternative means of getting anything close to clean drinkable water for the average Nigerians. Therefore, how do you cash in on the demand of sachet water production to make money for yourself?
The business of sachet water production is quite simple, and here I’m going to run down the step by step guide how to start pure water business in Nigeria without stress. In water business just like every other business, the number one priority should be service to humanity then, the money will come naturally. Like any other consumables, life is involved so try and put everything in place properly. Here are the things needed to get started
Sachet Water Production Factory
You need to acquire a property or rent a place, getting your own property and developing it is the most desirable option as that will save you cost in the long run.
The name your water products will be known for. Branding is very important in business, so in addition to your business name, design a very professional logo for your product because perception is the best sales man. Make your brand stands out among others!
The most common source of water for commercial drinking water production like sachet water and bottled water is borehole, let there be borehole within your premises for constant water supply to your pure water production factory.
This will serves as reservoir to supply water to the distillation system, it has to be overhead to ensure proper pressure to be able to pump down the distillation chamber.
This could just be a micro filters and cup filters depending on your start up capacity, but if you can afford it, then you go for more comprehensive distillation system. Otherwise, use Purification process known as Ultra Violet sterilization bulbs process. After distillation, you need to take your product (the resultant water) to the laboratory for results.
NAFDAC Is the agency that supervise foods and drugs in Nigeria, you need their approval to carry out business that involved consumable products of which water is one of them.
Automatic sealing machine cost between N400,000 to a Million Naira. Go for the ones that seals or produces about 40 sachets per minute.
You will need minimum of five persons to work in your factory for a start then increase with time as the demand may be.
Buy truck for your distribution of rent but renting can be expensive and disappointing most of the times. My recommendation is that you buy your own truck if you can afford it at the beginning.
You know the situation of power supply in Nigeria, except if things changes tomorrow. If not, you will need a standby power generating set, and 25KVA will be just perfect for the job.
With all these in place, you are good to go! For a start up and depending on what you already have like land and other things, you may need up to five million naira for a start up in order to get the sealing machines, nylon and other materials, and pay for labor for about some months before it begin to yield profits. Your cost could be higher if you are also paying for rent and hiring trucks.
Assuming you have only one Automatic sealing machine that produces your sachet water and you can afford to have only one delivery van that distribute your products. one automatic machine (at 100% utilization) Capacity: 40 sachets per minute i.e. 2,400 sachets in 1hour Which is equivalent to 120bags in 1 hour.
Let’s conclude that; On the average, you produce 100 bags in 1hour, and assuming you was able to work for 4hours in a day. i.e. one machine producing 400 bags of pure water in a day. (sincerely, an average sachet water factory in Nigeria today produces between 700 bags to 800 bags per machine in a day) so it all depends on you.
Still based on our assumption of 400 bags in a day and a bag is being sold between N70 and N80. So let’s also assume N70 per bag; 400 bags x N70 per bag = N28, 000 per day. N28, 000 x 28 working days in a month = N784, 000 per month. Wait and see; N784, 000 x 12 months in a year, = N9, 408,000
* Government has failed to provide the basic drinking water need of every household in Nigeria. So, everyone make provision for themselves and buying pure sachet water is one of the most reasonable option.
* The more the population increases, the more the need for people to drink water, and the more the demand for the product of sachet water.
* There is not going to be a day, people will stop drinking water. In fact, it is one of the most essential consumable product and the most consumed natural resources on earth.
* Sachet water currently has no close or partially close substitute in Nigeria where the majorities are poor to depend on bottled water which is more expensive.
* One can never run out of customers to supply to. The more the producers, the more the consumers of sachet water.
* The popularity of sachet water is growing on alarming rates even in towns and villages across Nigeria.
* At five naira for a sachet, pure water is very cheap and affordable to buy even by the poorest man on earth.
* It is a major source of revenue for the government, so the government is even encouraging more producers.
There is really no distinction between the consumers, it is widely acceptable to the rich and the poor, and is used for events and parties.
* Consumption of sachet water is not restricted by any law or religious belief unlike alcohol or some other drinking products and has no side effects.
* The set up requires little start-up capital compared to other factories. with five to 10 million naira, you are go to go and the return is guaranteed.
* There is ready made market for the product. All you need is just produce, it is one of the product out there that requires no much marketing to get the product accepted as it is already accepted by nature.
* The payback period for the investment into the business is less than six months. It’s one business you confidently get loan to do start with 100% assurance that the business would pay.
* The return on Investment (ROI) is more than 50% and it is subject to increase on expansion of the business.
* It requires little or no periodical acquisition of raw materials for production; water is a free gift of nature.
SEE ALSO: How To Start A Business – Complete Guide
Do you have any question? Drop your comment below!
You must be logged in to post a comment.
i just love this,with 10000 i tink iam good to go.
You did not give the price of the distillation system or the ultra violet one. Please kindly provide me with the information.
what is the name of machine that produce 120 bags per hour
i want to really appreciate you for your kind gesture for enlightening me more in pure water production business,i ve,been into these business for 3years and i ve, use it to buy a land and registered a company.thou i buy from producer and sale in whole/retail sales.meanwhile i am working out modality on how to get empowerment to kick start my production. Tombra Bebedongha
That's very nice, It's good to think big and outside the box. If you can dream it, you can have it
Hi Darlinton,
My name is John Oghene.
i live in Toronto Canada. I shall be relocating to Nigeria soon upon my my retirement. next year. I want to set up Small Scale Pure water Plany in my home Town UGHELLI- DELTA STATE. Please advise and guide me including cost and your consultancy fee.
Regards,
John
i will take my time explain to you because water bussiness is nice biz where in nigeria. what are the things you need to know about the water biz tell on 07067111331 or email me ochijioke32@gmail,com
Hi house, its really appreciable dat the is a blog like this…
Very many thanks to you please can I know the challenges one can also face
what size of generator capacity required for production of sachet water production, if some one is using one machine , that is to start with, and production brand i mean color of Ninon
Please how do buy from producer and resell at whole sales cos I also want to start like pending the time I will gather money to start my own production
Dear Darlinton, many thanks for your time to offer us all we need to know about pure water making-business in Nigeria. I would like you to shed more light on the following questions:
1) What do I need to do on my landed property for this purpose? Before you answer that, the following info for you:
a) I have built a fence around my landed property with a secured gate.
b) I have a borehole constructed therein too, to make water available.
c) The piece of land has a three bedroom flat foundation on it to serve as a boys-quarter in future.
With all the aforementioned, what else do I need to do on this piece of land to start the business? (Please forgive me if my question sounds stupid!)
2) Which of the Nigerian financial institutions can one apply to for loan?
3) Is it possible to buy the distillation machine(s) in Nigeria and the machine for producing and sealing the water?
I look forward to reading your answers. Once again, many thanks and God's guidance!!!
From Prince
Dear Darlinton, many thanks for your time to offer us all we need to know about pure water making-business in Nigeria. I would like you to shed more light on the following questions:
1) What do I need to do on my landed property for this purpose? Before you answer that, the following info for you:
a) I have built a fence around my landed property with a secured gate.
b) I have a borehole constructed therein too, to make water available.
c) The piece of land has a three bedroom flat foundation on it to serve as a boys-quarter in future.
With all the aforementioned, what else do I need to do on this piece of land to start the business? (Please forgive me if my question sounds stupid!)
2) Which of the Nigerian financial institutions can one apply to for loan?
3) Is it possible to buy the distillation machine(s) in Nigeria and the machine for producing and sealing the water?
I look forward to reading your answers. Once again, many thanks and God's guidance!!!
From Prince
You need to develop the three bedroom flat, that is enough to serve as your factory.
Install water purification system, anyone you can afford.
Buy your water sealing machine, you can buy it in Nigeria.
Staff your company and Start your NAFDAC approval process.
the cost to start is
Dear Darlinton, many thanks for your advice!
My questions as follow:
1) Which of the financial institutions in Nigeria could one apply to for loan for the business?
2) Is it possible to buy the distillation machine and sachet producing and sealing machines in Nigeria? If no, where and which model?
3) I have a secured landed property with in-built borehole. Please tell me the standard I need to construct there for this purpose. Already, a three-bedroom flat foundation had been constructed there to serve as boys-quarter in future. I look forward to reading your answers. Once again, many thanks and God's guidance!
Prince T.O.Alez
The best bank to apply is the bank you have been banking with. No one is in a better position to consider you for load more than the bank that has your transaction history.
The next is cooperative banks, join one now and start contributing if you haven't joined any.
Raising the three bedroom flat may just be enough for now.
Appreciated!
How can we treat or purify the water. Do we need any chemical/reagent for the purification. Please throw more light.
Mr Darlington Omeh, I really thank you so much for this help you have provided for free. Please sir, i have a few questions that i want to ask you.
(1) Where can one buy the machine that can produce 120 bags per hour?
(2) Is 2 bedroom flat big enough for the factory?
(3) Must I tile the floor?
(4) where can one buy the electronic sterilizing machine?
Hi Darlinton Omeh
Thanks for your insight on this, please I am interested on this Distillation system and Authomatic sealing machine (Koyo sachet sealing type), where can i buy it and how do i install it and can the suppliers install it. am in Imo state. Finay what is the name of machine that produce 120 bags per hour.
Kind Regards,
Lord Edi
You guys can buy the machine through Alibaba.com or from some dealers in Lagos and other cities.
Two bedroom flat is big enough depending on your production capacity.
Yes, it should be tired.
Check the other pure water articles for sterilizing and purification systems
Wonderful piece Darlington,i can't thank you more for this inspiring guide for our people who desperately need such investment to get jobs.My question is what's the exchange rate Naira to US dollar as I live in the US and what's the minimum dollar amount (capital) needed to start?Thanks.
Kingmed!
One dollars = one hundred and sixty naira.
What is the minimum capital needed to start-up this business?Thanks…
Thanks for this simple and straight to the point information.
Hello Darlington We want to set up a plant but all we have is collateral how do we secure a loan using this?
hello Mr Darlington..i am personally greatful not only on the 100 billion dollars worth light you have thrown to the pure wáter production but also many of the other articles you have severd here free,.now my question is i have a landed property in onitsha anambra state and a raised boys – quater in it .do you think onitsha is good for pure wáter production business?
Yes, Onitsha is one of the cities in Nigeria with the highest ratchet water consumption rate. Definitely the business will do well there.
Hello darlinton, pls will like to know if i can use ford e150 van for pure water business? Tnx.
what is the future of pure water since the government is planning to ban it
Thanks for the write-up sir, very inspiring. But sir, the financial values you presented are strictly 'sales' and not profit. Operational expenses (raw materials, labour, utilities) is not included. I don't know, but I believe it will strongly affect those values. Can you please provide us with the cost of producing the 400 bags we used as case study. Thank you very much ones again. And remain blessed.
Thanks my brother please is there is water factory in delta state, especailly Warri and will it be good to start up this business in Warri.
Can the business work in Warri
Sure it can work out in Warri. Truth be told, the market is about saturated though like it is in most major cities within the country.
~Lord
Thank you so much MOD. Please I already have my business register and my product trade mark gotten, the building is set and the borehole is in progress but my challenges are:
1. I dont know what machine to purchase. What is ozonated machine pls? I am told its more expensive but better, durable and easy.
2. Is the satchet water going to be ban really by the government? so that I dont need to buy a machine that will nt be used at the long run.
Pls I need your help because everything I have done is with all my life savings, bank loans in Nigeria are very unreasonable because of the obnoxious interest rates.
Thank you and God bless
Read the other article to get clearer pictures about the machines required.
https://wealthresult.com/2013/09/How-to-Start-Pure-Water-Business-in-Nigeria.html
Copy the above link and paste it on your browser to access the article.
For now we don't know where the Federal Government is going in this. I think you need to just start and let's see what happens at the long run. They may not ban it after all.
Hi, I want to establish pure drinking water enterprise but I don't have experience in doing this business. I have written your advice about how to start Sachet pure water production that is a good advice for sharing information for me and others. i would like to ask you that should I work for pure drink water enterprise before I start to make my own business ?
Dear Darlington, please i have a property that is 2 plots of land fenced together. i use one side of it (a plot) as poultry. can i still use the other remaining side (plot) to establish sachet water business as i intend to? Is there any law against that? Please reply
No, it's not healthy and unacceptable by NAFDAC. If you want it approved, you need to get a separate location for it
That you for enlighten me on how to start. I need to know about how much do you pay the staff who do the packaging a day
I need someone that is a trust worthy, for us to join dis business together nd make sometin reasonable, i don't mind d position of d factory even ur home town i don't care. as long we ll put sometin into existin.
Please i wanted to do this business so much. I wanted to buy one pure water factory and i do not have money, all the necessary document is ready. Where to get loan to pay for and turn around the company? The owner is ready to leave document for me to request for the loan through his approval.
Please help me out.
Thanks.
Please i wanted to do this business so much. I wanted to buy one pure water factory and i do not have money, all the necessary document is ready. Where to get loan to pay for and turn around the company? The owner is ready to leave document for me to request for the loan through his approval.
Please help me out.
Thanks.
I have a plot of land whit a 4 bedroom structure on it. Can I use d remaining space 4 d factory. Tanx 4 ur insight.
this is good, i have been looking for a guideline on pure water production,… thank you Mr. Darlington…but i heard the market is already saturated(competitors are many). what are the strategies one can apply to prevail as a fresher in the business
I have a BQ at the back of my house, which I intend to use for the pure water factory, it is a self contain, nt too big but its separated from my house. Can I use it in setting up the factory, because I'm kind of confused right now. I jst need an advice or guidelines on what to do, and how to go about it. I don't know if NAFDAC is going to approve It, but it is a fenced compound.
I have a BQ at the back of my house, which I intend to use for the pure water factory, it is a self contain, nt too big but its separated from my house. Can I use it in setting up the factory, because I'm kind of confused right now. I jst need an advice or guidelines on what to do, and how to go about it. I don't know if NAFDAC is going to approve It, but it is a fenced compound.
Please i have started the business already in about a year ago. Nd i thank God dat am doing well with unaccountable customers but now I'm having this problem of having particles in my sealed sachet water but during production i do have a very clean nd nice looking result i.e. Pure water but after some days i'll be seeing some tiny particles inside please how do i treat a durable water that will last for at least 6-7 weeks? Thanks well
Embark on TOTAL I mean total overhauling of the entire system.
Please i have started the business already in about a year ago. Nd i thank God dat am doing well with unaccountable customers but now I'm having this problem of having particles in my sealed sachet water but during production i do have a very clean nd nice looking result i.e. Pure water but after some days i'll be seeing some tiny particles inside please how do i treat a durable water that will last for at least 6-7 weeks? Thanks well
Check your water sources, and your packaging machines
Dear Darlinton Omeh
can you please advice me on the place i can buy all the neceseery machine to start up the sechat water business, and all the machine i may need,
if i can jet the contact number, email and address for me to contact them for pectronage
tks
Either the tiny particles are white or brown, re-pipe ur plumbing networks, open ur Filters down to d main bottom, if Adolite is used stop it, before main productn do samples.
Wow! it quite impressive for you numerous advice. I will contact you as soon as possible for more information. Thanks and God bless.
Thank you for sharing this business idea.I want to know,do I need to hire a quality control expert to test my water sample after production or are there ways I can determine it myself cos am interested in starting this business.
Sir, is there any specific patttern approved by NAFDAC for the construction of the building i.e.the factory?
Hello D
am interested in the pure water business but am more interested in the NYLON production for the pure water producer to the nylon from me.my question is that how much is the nylon production machine in nja. thks
Hon.
Hello Darli
pls do i need NAFDAC approval before the printing of the pure water Nylon.
thanks for your inputs so far.
Yes, you need NAFDAC Approval before doing anything. You need to print the NAFDAC number on the nylon remember?
.Thank you very much for this publication, you ve made my day. Please kindly explain and also recommend on the type of equipment for Distillation System and reliable company and address of company that sells these equipments.
Thanks
Raphael
Good day,please can someone buy already NAFDAC register company.
Yes, you can buy a sachet water making company that is already approved by NAFDAC as long as the deal is favorable.
1 ）STEPS TO DOING A WATER PROJECT
1.Obtain the necessary license and business permit:Obtaining a bottled water license depends on the country of your location so it is up to you to find out the one applicable in your country.Study the rules and regulations for the type of water you will be producing and then go apply for a vendor’s license from your local county administration. Also obtain a permit from your state health department.
2. Conduct feasibility study and market research:Before youcan successfully get a bottled water business up and running, you need to find out what is really involved and what it takes to run such a business and this can only be achieved through a market research. Due to the complex nature of setting up a bottling water business, it is advisable you carry out your research alongside a consultant or an expert in such field. The result of your research will determine the type of bottled water to produce; your location and your pricing strategy.
3 Determine the location: The location for many water projects is going to be the most important decision to the success of the project. If you are going to be doing a customer self serve where people bring the bottles to you for refilling it needs to be where the people can find you easily and not far from where they live. You should have ample parking and easy access to the parking area.
4.Where is the water going to coming from? As part of determining the location you will need a good amount of water. If you are going to be using a city’s water supply you need to make sure it is not off for long periods of time and the pressure is good all the time. If you don’t have a good supply of water you need to think about your options, one being a well (borehole) or to buy water from a bulk water truck. Both will cost you more in setup and operating cost.
5.What type of electrical do you have? In some areas or cities you may only have one option as for the voltage or phase, which you need to know. Is the electricity on all the time or only on for a few hours a day? If the area is known for power failures you will need a generator and the type you use will depend on how much or often it will be used.
6.One of the most important considerations that needs to be looked into is the technical support and replacement parts should you have a problem. Many times a project will have a problem and no one knows how to fix it, they will not have the tools to repair it, or worse yet will not have the components needed on replacement parts. Proper training for any project is very important and is a must!
This is Cici from Green Forest Water Equipment Co.,LTD,which is a professional packaging machine manufacturer in China. Our main products are bottled water filling machine,beverage filling machine,sleeve label machine,carton packaging machine .
what is the importance of raw water tank. why can't water be pumped straight from the bole hole through the treatment tanks to treated water tank
IS D GENERATOR STIL AVAILABLE 4SALE,AO MUCH IS IT?
Morning , we need two water sealing machines and all the assossories. we want to do 500ml sachets. please call me ask kamara and give me your email number
Mr,Dal.pls.how much does it take to get a company approved by NAFDAC.
Hello sir, pls I have a plan of setting up a pure water factory. I have a building of about 4 bedroom, with borehole. can I start with 300k? pls advice me.
Thanks for the write up. Am putting things together. Av gotten land n sunk borehole. Please will you be my mentor.
I really like your article. Please how much does it cost to get those machine and filter and the amount for the NAFDAC registration. please kindly answer to this.
Ajuna
Hi, please how can i market my products as a pure water producer
thank you so much for the information. please i need 4 supplies pro forma
invoice in both the distillation system and automatic sealing machin. thanks.
Good work, may the Lord contnue to bless u for the insight u give on the factory, what if i want to set up the factory in Abuja. I like to have a first hand experience on the production process, where can i do that, pls recommend someplace, thanks
Establish pure drinking water enterprise sound great;but what areas are they suited best? I am interesting it as investment. i don't have experience in doing this business; but i need to be able to get more information, how many an how far apart are the business. what type of return on investment ?
Reply
Thanks for your enlightenment can you help me to send the diagrame on how to build the pure water factory and where i can get the machine.
I HAVE A 70% COMPLETE SACHET WATER FACTORY, I’M LOOKING FOR SOMEONE TO PARTNER WITH TO GET IT COMPLETED AND KICK-OFF PRODUCTION. IT IS LOCATED IN PORT-HARCOURT AND I OWN THE PROPERTY, HAVE ALREADY INSTALLED SOME OF THE EQUIPMENTS REQUIRED AND HAVE SANK A BORE HOLE FOR IT.
FOR MORE INFO CONTACT ME ON THIS NUMBER 07062457475 (MY NAME IS DESTINY)
Dear Darlington,
Many thanks for the insightful write up. Please, i have a two bedroom (two wings) on my plot of land. I intend living in one of the apartments, can i use the other apartment for the water business? Will it be approved by NAFDAC.
I will appreciate your kind response to this. Kindly do me a favour by letting me have your phone contact for further mentoring.
Stay blessed.
0 would like to know if i can use my
Good day, please I have read through your guide and I have also seen the required things needed to set up a sachets water factory. I would like to know how to get these machines and people to install them
I’m very much happy with what I read in this web, and it’s not that im into the business, I only developed an interest, that is why. For some one like me from where to start?
Wow! This is inspirational. With the level of unemployment and recession in the economy, this could put food on some families table.
However, we need to collaborate and partner with the cash owner if you don’t have all the capital require to start.
How do the complete manuel or booklet of how to start bottle and sachet pure water production?
How do i get the complete manual or instructional booklet of how to start a bottle and sachet water productions?
Good day darlo , I need contact for the company that sales the sachet water production machine and bottle water.
can i get the machines from onitsha?
please sir.may i no the number of marchines that are reguired in starting this business.if i may ask,is it the sealing marchine that produces the nylon and also print the logo and the nafdac number on it?and at thesame time seal it? please enlighten me more please.i want to go into the business.thank you.
The sachet water sealing and cutting machine and the water distillation system. These are the two major machines required for the actual production process. Then Generators and distribution vehicles.
please Sir is the overall estimation of the above mentioned , and can We interact on phone or email pls
All i will say is may the good Lord bless you and keep you for not holding back knowledge. this might be your purpose in life(teaching people).pls keep it up and may your children never fall victims of circumtance. Thankyou and God bless. your type are rear to get. once more God bless you.
Please, I will appreciate if I can get this pure water production process directly via email. Thank you very much
my email
good morning mr darlington please can you send this proposal soft copy have gotten a plot of land already and am presently in the process of cac and pls assist me
hi darlinton omah
please where can i buy all the machaine i need for the sarchet what buz
Good day Mr darlington, am so impressed by your lession above, I have gone through them. I will need your help in getting those equipment for pure water production..thank you sir.
Ca some one use two rooms in family house to start sachet pure water business also without cutting down economic tree?tnx
As a start having and two rooms nt having enough capital can 1 start with little as one million naira?
Hello,
Please I run a fish and poultry farm and I still have a large space to build a water factory can I do it in my farm? Do I need a NAFDAC approval before I build or after setting up the factory please advice.
Can I get a breakdown of the cost and equipment required to start up am in Port Harcourt.
Your responds will be of great help to me.
Warm Regards
PLS HOW CAN I GET STANDARD OPERATING PROCEDURE FOR PRODUCTION, QUALITY CONTROL, CLEANING AND MAINTENANCE OF EQUIPMENT. BECAUSE I HAVE MET ALL THEIR REQUIREMENT BUT FOR THE OPERATING PROCEDURES
Ow much is d cost of dis distillation filter pls
Its been a lovely moment with you.
I must confess that your article has been insightful and informative too. hanks for sharing. I really do appreciate your benevolence.
Hi,
Thanks for the write up.
My question is that, what is the capacity of the generator you said is needed because I think that the price of a 25kva generator is too much?
Hi this is a good lucrative business,which i have been planning on.
Good day Sir/Ma,
Please if you dont mind , i need the set by set on how to set up a sachet water and bottle water business in shimawa area of Ogun State, Nigeria.
Thanks in anticipation.
Kind regards,
Atinuke Mayungbe.
we sell all kind of auto sealing machine, bottle line, R O, U V,ozone generator and treatmeant plant with chemicals for the treatment
Hi sir plz I want to Start the business new I need ur back up so pls I need to spik with u or see u fiscal for putting me true pls I need ur phone contact pls
. Thks
we sell all kinds of sachet water machine, bottle water machine,semi auto shrink wrapper machine, RO treatment plant, pet blowing machine compelte set, Uv light, ozone generator, Pre treatment plant both local and imported plant, housing filter 10 and 20 Inches, carbon chemical, resin chemical, akodlite chemical, brim chemical, flow meter swich, vontron membrean, air sterizer,electric moter, dosing pump, mixer, chlorine chemical, HTH chemical, limbux chemical, cowas chemical and many more get me a call 07067111331 or ochijioke32@gmail.com
I want to learn how to make pure water and bottle water I don’t know how you can help me out
Hello Mr Darlington, i applaud you for taking out time to write this article for the benefit of the public, I’ve been into this business for about 3yrs now and my latest factory was started with over ₦20 million, however i have noticed that everyone who writes articles on this business miss out the cost of production hence adding both the cost of production and profit together as one.
For example water is sold at N100 per bag, the cost of production at this present time will be as follows. This calculation is based on 500kg Nylon Roll
Nylon Roll ₦1020 per kg x 500kg = ₦510,000
Hence 500kg = 14,500 bags (Nylon gives you 29 bags per kg so total of 500kg = 14,500 bags)
Packing Bags ₦4700 per bundle multiplied by 14.5 = ₦68,150
(Each bundle packs 1000 bags of water, so you need 14.5 bundles for total of 14,700 bags at ₦4700 per bundle)
Packagers collect ₦2.00 per bag multiplied by 14,500 Bags = ₦29,000
Diesel ₦200 per litre, let’s say you use ₦2000 diesel to produce 2000 bags that gives you 1 litre per bag multiplied by 14,500 bags = ₦14,500
Hence the breakdown below:
Nylon = 500kg x 29 = 14,500 Bags – 1400 bags given as extra = 13,100 (₦510,000 ÷ 13,100 = 38.93)
.: Nylon Cost ₦38.93 per bag
Packing Bag Cost = ₦4.70 per bag (@ ₦4700 per bundle)
Packagers Payment = ₦2.00 per bag
Diesel = ₦1.00 per bag
Total Production Cost = 38.93 + 4.70 + 2 + 1 = ₦46.63
So N100 – ₦46.63 (Production Cost) = ₦53.37 (Balance)
Drivers are paid by commission, currently some drivers take ₦5 per bag and their motor boys ₦2 per bag, and motor diesel can be calculated at ₦3 per bag.
.: 5+2+3 = ₦10 for distribution cost.
So ₦53.37 – ₦10 = N43.37 (Profit) hence your actual profit is ₦43.37 per bag x 13,100 = ₦568,147 for every 500kg which can be exhausted in one month or even one week depending on the number of vehicles.
so when calculating profit next time don’t calculate the total cost of a bag as profit.
also note that from the gross profit you also have to pay other non-commission staff such as manager and sales person and also maintain the vehicles.
Thanks
That’s a great impute. I calculated N784,000 per month while you calculated N568,140 or even N2.2million per month depending on how fast the water is sold. So you only reinforced my calculation. I like the way you break it down into pieces for a home digest, but as regard the actual profit, we are still on the same page. Thank you
Good day sir. Please how much can someone start with for a small scale production?
Hello john Cameron thanks so much for the break down, is it possible I get your number just for a little clarification . I will really appreciate this .. Thank u so much .. Have a good day ..
Good day sir. Please how much can someone start with for a small scale production?
Graete job Sir, can I get your phone number pls?
Hello,I need a partner that is interested in doing some business with profitable interest, -you can get me .thanks
From the looks of it. Sachet water business may not really be a profitable business. I must sell in large volumes and fast to break margin …
Good day to you, this business idea is a great one, please i would love to know if I can use my back flat is two bedroom, your reply would really be appreciated
I love the business, is in my plan for a year but i promised one day i will get it set.
thanks
Good day and thanks for the information. I love the business Pls can I have your number so we can communicate better.
Hello Darlinton how much can i use to start a sachet water business and can i make use of 2 bedroom building?
Hello Mr Darlinton Omeh
I have gone through your article and it is the best I have ever come across on the subject. God bless you the more.
Please I have completed Business plan on the pure water production and also, I have some facilities on ground. However I need a one on one consultancy service and I would like to have your contact details.
Thank you Adekola. However, I am no longer based in Nigeria
Where and how much is 25 KVA Generating set
Good day. Where and how much is 25 KVA Generating set.
What is d problem someone might encounter in d course of this study, nd d benefits of it