Wednesday, October 22, 2014

satchet water production in nigeria



Every  smart investor knows that the best product to deal on is the product in high demand, that automatically placed pure water production business "Investors Choice" any time. The demand doesn't seems to go down very soon as it has become the most credible alternative means of getting anything close to clean drinkable water for the average Nigerian. Therefore, how do you cash in on the demand of sachet water to make money for yourself ?

The business of pure water production is quite simple, and here I'm going to run down the step by step guide how anyone who is interested in this business can get started easily without much 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:

1. Get a place of business - 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.

2. Register your business name - 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!

3. Sink a Borehole - 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.


4. Install Overhead Tanks - 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.

5. Install Distillation System - 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.

6. Get NAFDAC Approved - 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.

7. Acquire Automatic Sealing Machine - Automatic sealing machine cost between N400,000 to a Million Naira. Go for the ones that seals or produces about 40 sachets per minute.

8. Employ Staffs - You will need minimum of five persons to work in your factory for a start then increase with time as the demand may be.

9. Distribution Mechanism - 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.

10. Get Power Generation - 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 labour 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 N100 and N120.

   So let’s also assume N100 per bag;
   400 bags x N100 per bag = N40, 000 per day.
   N40, 000 x 28 working days in a month  = N1120, 000 per month.
Wait and see; N1120, 000 x 12 months in a year,
 = N13440,000
  wow so what are you thinking of if i  were you i would have reached the bank by now.

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