The growing need for safe, clean and reliable drinking water in India is more than a movement; it is a shift in consumption habits. The packaged drinking water sector is now, for entrepreneurs, an exciting, booming and profitable sector in India and across the globe. But what is required for someone to begin a successful business in packaged drinking water?
There are many opportunities, and yet, success should not be left to chance. Starting a packaged drinking water business requires extensive planning, a solid understanding of the technical issues associated with running the business, and extensive action plans to manage the regulations. This article will highlight some of the key steps involved in starting a successful packaged drinking water business in India.
Why the Bottled Water Market is Booming
Several positive trends are accelerating growth within India, both in the larger water category and in the specific segment of packaged drinking water. If you are looking at growth potential for your business or organisation in the water category, it is critical to have an understanding of the broader growth trends.
- Health Concerns are Increasing: Consumers are now aware of safety issues surrounding consumption from contaminated water sources, and many are switching to bottled water in enormous daily quantities.
- Urbanisation & Fast-Paced Life: As people continue to urbanise and enjoy bus, convenient, real-time, and in-transit lifestyles, bottled drinking water as a commodity has gone from a “convenient” beverage to a “need”.
- Water Quality Concerns are Increasing: As consumers become more and more aware of municipal water quality, bottled water quickly became both the beverage of choice and the normal, standard choice for millions of households all across India.
- Increased Travel & Hospitality: As travel and hospitality began to grow again in India post-COVID-19 and emerging out of the lockdown, travel and hospitality have brought new waves of ‘premium bottled water demand’, into the hotel, restaurant, and airport type categories.
The Blueprint for Your Bottling Business: From Concept to Production
Establishing a packaged drinking water plant involves different aspects. An orderly and advised way to do this is by implementing a formalised approach with clearly defined steps.
- Create a Thorough Business Plan: This will become your foundational document. Your plan should identify how much water you plan to batch (e.g. 1000 litres every hour) and who your customers will be (e.g. small 500ml bottles, 20-litre jars, etc.), along with the information about investment and costs and a breakdown of your return on investment (e.g. IRR and costs in trialling your scaling).
- Find an Adequate Facility and Reliable Source of Water: You will need an industrial-sized and configured facility, including process flow of hygiene (including treatment, storage and bottling), and a source of raw water that can be justified.
- Purchase all the Equipment You Will Need: The packaged drinking water plant equipment is your business. The standard equipment for a packaged water plant includes:
- A water treatment system with complete reverse osmosis (RO) and UV sterilisation, as well as ozone treatment to confirm purity and compliance guidelines.
- Bottling machines (e.g. Blow Moulding machines for PET bottles).
- Automated (hygienic) rinsing, filling and capping line.
- Understanding the Fundamental Licenses and Certifications: Compliance is one of the most relevant pieces of information when running a business. Your space will depend on different rules and regulations that have to be followed at each step of what you are allowed to do legally. The two most important certifications are as follows:
- BIS Certification (ISI Mark): The Bureau of Indian Standards (ISI IS 14543) requires this certification as a mark of quality and safety in consumption.
- FSSAI License: This is a compliance license by the Food Safety and Standards Authority of India for operations for any food and beverage operations.
Your Partner in Success: The Turnkey Advantage
The process of carrying out these items, from choosing the machines to working through complex regulatory papers, can be daunting for a first-time business owner. Joining forces with Bottling India as a turnkey solution provider has many strategic benefits.
As industry experts, we will manage the whole process for you. We don’t only provide machines; we set the plant layout, manage the full installation and commissioning, and take care of the whole BIS and FSSAI certification process. This turnkey process means that you can rest easy knowing your plant has been designed for optimum efficiency and compliance, allowing you to focus on building your brand and distribution channels.
Conclusion
There are tremendous growth and profitability opportunities in the packaged drinking water segment in India, but ultimately, success relies on quality, quality control, and efficiency. After learning about the essentials for success, it’s now time to find an appropriate (and seasoned) organisation, a turn-key provider, to partner with you through the complexities of setup.
At setup, you will be poised to act on a solid production model and able to best take advantage of the ever-evolving market to build not only a successful business but a sustainable business for many years to come.
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