sachet pure water business plan & feasibility study

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SATCHET WATER PLAN (Designed By NAIRAMAN ©2011)�

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THIS IS AN ABRIDGED VERSION OF THE FULL VERSION

OF THIS PLAN. YOU WILL ALWAYS SEE THE CAPTION

******SOME TEXT MISSING******

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:


...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”.


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

******SOME TABLE VALUES MISSING******

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

******SOME TABLE VALUES MISSING******

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)


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

MISSING******.

2. Promos: ******SOME TEXT MISSING******.

3. Use of promotional materials: ******SOME TEXT

MISSING******.

4. Donation: ******SOME TEXT MISSING*****.

5. Advertisement: ******SOME TEXT

MISSING******. 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)


POLYETHYLENE ROLLS (SACHET) CONTACT (NIGERIA)


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sachet pure water business plan & feasibility study

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