Sachet Pure Water Business plan & Feasibility Study for entrepreneurs who want to venture into the water packaging business.

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THIS IS AN ABRIDGED VERSION OF THE FULL VERSION
OF THIS PLAN. YOU WILL ALWAYS SEE THE CAPTION
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THEREIN BECAUSE I DELIBRATELY DELETED THOSE
TEXT JUST TO SHOW YOU PART OF THE START-UP
PLAN.
THE FULL-VERSION IS WELL DETAILED AND IS
APPROXIMATELY 4,000 WORDS LONG. IT ALSO
CONTAINS THE CONTACT OF THE SACHET MACHINE
FABRICATOR AND THE POLYETHYLENE
MANUFACTURER/PRINTER.
THIS ABRIDGED VERSION WHICH IS ONLY ABOUT 1400
WORDS LONG IS ONLY A TIP OF THE ICEBERG.
MY INTENTION IS TO SHOW YOU PART OF THE
DOCUMENT IN ORDER TO CLEAR ALL DOUBTS.
THE FULL VERSION OF THIS START-UP PLAN IS
AVAILABLE AT A PRICE.
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NAFDAC GUIDELINES
Below are some of the NAFDAC Guidelines you will find in the report:
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...A successful application attracts a Certificate of Registration with a validity period of 5 (five) years
whereas products with Listing status has a validity of 2 (two) years...
... payments to the Agency should be in Bank Draft payable to National Agency for Food and Drug
Administration and Control (NAFDAC).
• Water in sachet Thirty thousand naira (N30, 000:00) + 5% VAT.
• Water in bottle Fifty thousand naira (N50, 000:00) + 5% VAT...
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REQUIREMENTS FOR THE BUSINESS
Registration of business with Corporate Affairs Commission (CAC)
Registration with NAFDAC
Accommodation: NAFDAC recommends that the factory must not be residential nor
share compound with residential ones. Floor of production room and store must be
tiles; pallets must be on the floor of the store.
Two Dyna Trucks
Good Bore hole well
Nylon sachets
Sacheting machine
7.5 KVA Generating set
Other Consumables
These requirements are detailed later on in this report.
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HUMAN RESOURCES FOR THE BUSINESS
1. Production Manager: This ideal candidate must be well experienced and qualified.
A degree holder in related fields such as microbiology, food and drinks, e.t.c.
Especially someone who has previously worked with a sachet water company.
2. Administrative Manager: Who must be experienced and qualified in administration
of business. You can fit in here with the help of the Production Manager.
3. Machine operators
4. Parkers/Loaders/Supervisors
5. Cleaners
6. Drivers
CHALLENGES OF THIS BUSINESS
1. Meeting the NAFDAC requirements. NAFDAC is the main regulatory agency you
must meet its requirement before and after your products are approved.
2. Generating effective marketing strategies that would transform into money.
3. During the rainy season, demand for pure water may drop drastically.
4. How to get responsible, honest and reliable workers.
5. Since generating constant power is a problem in Nigeria, you have to plan your
business on generating set.
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FACTORY BUILDING PLAN
The building to be used has been specified by the regulatory agency – NAFDAC as follows:
The building must be spacious, with many rooms. It must not be close to a cemetery, abattoir, petrol
station, refuse dump, sewage system, saw mill, or any source of pollution.
The building compound shall be strictly used for the water production only and shall not
share compound with any residence.
Every building to be used must be approved before commencement of production. The building must
make provision for:
1. Water Sacheting Machine room.
2. Cloak room.
3. Packaging materials room.
4. Finished product room
5. Offices.
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FACTORY OPERATING PLAN
A typical sachet-water factory setting consists of a storage system (tanks), a conveyance
system (piping), a decentralized water treatment system (filters, UV disinfection units), and a
packaging system. The sachet water production follows this same order. The packaging is
done by making use of automatic liquid filling and packaging machines, also commercially
know as “automatic liquid packaging machines”, “form, fill and seal machines”, “form, fill,
seal, vertical (flow) sachet machines” or simply “sachet machines”.
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Typical sachet-water factory set-up (Water Sacheting Room)
Filter
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The filters used for the factories that were surveyed included yarn (strung wound) filters,
granular carbon filters, and fiber matrix carbon filters. The filter cartridges and housings
come in two sizes, 20’’ and 10’’ sizes, which corresponded to the filter lengths.
Figure A: Sand and carbon filters.
Filter media in cylinders
Sand Filter Carbon Filter
Water Pump
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Figure B: Series of yarn, fiber, granular carbon and carbon matrix filters.
Arrow shows flow direction
Yarn filter
cartridge(used)
Fibre filter
cartridge(used)
Matrix carbon filter
cartridge (used)
Figure C
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Figure D: Loading of polythene rolls in sachet machine
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Figure E: Polythene rolls adjusted by folding on base board of bag former
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Figure F: 0.5m of sachet rolls sealed longitudinally and at one end
Heat sealing plates
“Transverse Sealing”
Heat sealing plates
“Longitudinal Sealing”
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Figure G: Final adjustment of roll and trimming below seal
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Figure H: UV-bulb in sachet machine used to disinfect polythene roll
UV bulb used to
disinfect polythene
roll
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Figure I: Automatic Counter(Indicated by Red Circle)
Figure J: Automatic Counter (Shown blown up)
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Table Of Approximate Capital Cost Required For Sachet Water Factory
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Item Unit Unit Cost
(Naira)
Approximate
Quantity
Cost
(Naira)
Sachet Filling and Packaging
Machine
No. 500,000 1 500,000
GRAND TOTAL 1,174,180
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Operation and Maintenance Costs
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Item Units Per Time Unit Cost
(Naira)
Approximate
Quantity
Cost
(Naira)
Electricity
Fuel Litres per day 2,340 30 70,200
Total Costs Per Month 696,730.83
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Computation of cost of printing polythene bags used in sachet-water production
One roll of polythene weighs 13.8kg, including 1kg of an inner support the polythene is
rolled on. The weight of the polythene alone is thus 12.8 kg. The cost of printing 2 colours on
the polythene is approximately ******SOME TEXT
MISSING******
.
One roll of polythene (12.8kg polythene) is able to produce *** bags of sachets, with 20
individual sachets per bag. This is therefore equivalent to *** individual sachets per kg.
The equivalent cost a printed polythene bag for one individual sachet is thus N *** per
individual sachet.
These bags may be printed outside the State, so additional costs for transportation may apply.
Since the sachets were packaged in bigger bags of 20 individual sachets, the cost of the
bigger bag is factored into the N *** for individual printed bags calculated above. The
packaging bags cost N *** per 100 bags. This amounted to N *** per bag, and is equivalent
to N *** per individual sachet. Hence, the total packaging cost per individual sachet was thus
calculated as N ***. The total amount required per month for packaging material is therefore
N *** for the production of *** sachets per month (*** individual sachets per day).
Sachet-water Quantities Produced
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The number of sachets produced by factory should vary from approximately *** sachets per
day (*** litres/day) during the rainy and cold seasons to approximately twice as much (***
sachets or *** litres/day) during the dry and hot seasons. The quantities is summarised in the
table below:
Quantity of sachet water produced per day by sachet-water factories
Description Rainy Season Dry Season
Production per day
(Individual Sachets)
No. of Individual sachets
per bag
Production per day
(bags)
Volume
(litres produced/day)
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Each bag of pure water sachet goes for as low as N 50. So if we are to use the rainy season
numbers to estimate the expected sales amount, the calculation will be as follows:
Number of bags sold daily=***
Cost per bag = N 50
Total Daily Sales = N 50 X *** bags
= N ***
Total Monthly Sales = N *** X 26 days
= N *****
Estimated Monthly Profit = Total Monthly Sales – Total Monthly Expenses
= N ******* - N *****
= N 428,000
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MARKETING TECHNIQUES
There are various marketing techniques that can be applied. You must direct all your techniques
toward sales generations.
1. Price: Good pricing mechanism is one marketing technique you must have. Your products
must not be the cheapest; otherwise it ******SOME TEXT
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2. Promos: ******SOME TEXT MISSING******.
3. Use of promotional materials: ******SOME TEXT
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4. Donation: ******SOME TEXT MISSING*****.
5. Advertisement: ******SOME TEXT
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Remember to inform NAFDAC of any advertising plans you may have.
APENDIX I
Sachet Machine
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Schematic Diagram of a Sachet Machine (Front)
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Schematic Diagram of a Sachet Machine (Back)
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Key To The schematic diagram of the sachet machine
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USEFUL CONTACTS
SACHET MACHINE MANUFACTURER CONTACT (CHINA)
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POLYETHYLENE ROLLS (SACHET) CONTACT (NIGERIA)
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