Sachet Water Production Business – Detailed Business Plan

sachet water production Business

The history of Sachet water production (popularly known as pure water)
in Nigeria can be traced back as far as 1993. Legend has it that the first pure water production company in Nigeria is known as “OLUMO Water”, the name was probably derived from the ancient olumo rock in egba, Ogun state, Nigeria. The olumo water was brought to Lagos and was sold in traffic prone areas in Lagos. And ever since, investors all over Nigeria have adopted the sachet water production business to the extent that we now have numerous brands of sachet water business in Nigeria.

Although the sachet water business has been saturated in Nigeria, that doesn’t negate the fact that pure water production is till a lucrative business idea that still sells very highly and yield good result. Till tomorrow, sachet water business will continue to thrive in Nigeria, not because there is shortage of water in the country but because we can’t do without drinking water especially during our busy hours, when we encounter traffic while on the bus, and even a school. It’s almost impossible for people to carry water bottle along with them wherever they go, hence, sachet water is the immediate option whenever we are outside our homes.

Having given the reasons why sachet water production business will always thrive in the Nigerian market, lets quickly go straight to:

HOW TO START A SACHET WATER PRODUCTION IN NIGERIA

Firstly it is very necessary to conduct a feasibility test of where you want to station your production center. After accessing your business environment, you should draw a business production and marketing plan which will cover your budget. They are the following;

pure water production Business

1. PRODUCTION SITE

Once you have the capital with you, the first thing to think about should be where you want your production to take place. It could be a rented site or the one you build by yourself. If you are thinking about renting a big warehouse for the sachet water production, then your rental budget should be in between N250k – 1.5million annual rental fee (depending on the state). If you wish to build your site yourself, that means the cost of build a production complex will depend largely on your taste of build. However, an average pure water building duplex should cost around 3.5million to 10million naira depending on the area it will be situated.

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Other things that need to be considered under the production site include electricity bills ranging from N50k – 500k annually. Government utility bills and so on.

2.WATER SUPPLY

Under this, you have two options, either to drill a bore hole which is most preferable and reliable or to partner with a water corporation. Under the water supply section, one must also include buying reservoir as backup and to consider the treatment of water to maintain quality or standard.

3. TRANSPORTATION

Every beverage business including sachet water will require the producer to get the commodity closer to the consumer through the retailer. Sachet water production is a business venture that you cannot survive without a good transport system, especially Truck. You need a truck or a van; but your level of sachet water production will determine the quantity or size of trucks to go for.

sachet water production

4. PRODUCTION MACHINE

This is the part most readers are probably interest in, so i will try as much as possible to be analytical with different variables. You can either buy the production machine here in Nigeria, or import it from China. Whichever way you choose to follow, it will ultimately cost the same amount

• Buying sachet water machine in Nigeria

This is the fastest way since all you have to do is enter the market, pay the seller and move the machine to your production site. The problem with buying a machine from a dealer in Nigeria is being able to locate an honest seller, once you can find an honesty machine dealer, you will be on the safer side. However, the cost of a new sachet water machine in Nigeria may range between N600k – N800k while the fairly used one’s cost between N250k – N450k.

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• Buying sachet water machine from China

The best Chinese store where you can get good pure water machine is on Alibaba.com. On Alibaba the price of pure water machine falls within $950 – $3000 (342k to 1.08million naira) excluding the shipping costs.

5. LABOUR

After you must have acquired all the aforementioned, you would need to mobilize people who will be your employee and contribute their human effort to the cause of the pure water production. You will most likely need the service of skilled or semi skilled employees. The ones who will take care of the managerial responsibilities; that is if you won’t be available to take that responsibility. And also the ones who will handle the paper works and record keeping, including the employees whose physical effort is mostly needed and not their intellectual efforts. The number of workers will definitely depend on your production capacity.

• EXTERNAL SOURCE SERVICES

This may include those who are going to supply you with the sachet water nylon with your brand clearly printed on it.

It may also include the technicians who will see to the fixing of the sachet water machine whenever a technical fault arises.

• CONTINGENCY PLAN

I always advise investors on this aspect because of the unforeseen circumstances. Issues may arise that will require more spending which is why it is very important for a business owner to have a contingency plan of how to discuss problems that may arise at an unknown time. The best type of contingency plan is to keep a reasonable amount of money down for future purposes.

When all of these aforementioned budgets have been achieved, then the business owner is good to go. However, one must take note of some marketing facts and precautions.

pure water

MARKETING TECHNIQUES FOR SACHET WATER PRODCUTION BUSINESS.

Like i have said earlier, sachet water production business in Nigeria is saturated, yet still lucrative because the demand for it is high. That doesn’t justify the assumption that sachet water business doesn’t need much marketing effort. As a wise business owner who is just going into the sachet water production, you should take note of these five concerns:

  1. The first thing is to be diligent, before going live on a sachet water production. Your brand is what makes you unique and different from your competitors. If you want to know more about branding click here.

  2. The most important persons in the chain of distribution aren’t the consumers alone but also the retailers. The retailers are the firewall between you and the consumer. Therefore, you should look for incentives to buy the loyalty of your resellers.

  3. Fill the gaps that have been left unmet by your competitors. It’s no longer a news, that sachet water producers are reducing the size of their sachet water. Increasing yours a bit will surely give the consumers a good perception of your business

  4. Maintain quality production. Try as much as possible not to get your product flawed in any way. There are a lot of producers in the sachet water business, once the consumers perceive something negative about your water products, they will quickly move to another producer

  5. Maintain proper aesthetics. This include the good packaging of your water, neat production environment, make sure that your workers are presentable including the trucks used to mobilize your products.

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CONCLUSION

Sachet water production business is lucrative business and among the untapped business opportunities here in Nigeria. Once you began on a different light, you’ll be able to establish a brand and eat the fruit of your labour.

4 Replies to “Sachet Water Production Business – Detailed Business Plan”

  1. Jimmy osas

    Thanks for the business guide it is interesting ,l may be interested in the near future in one of the area.
    I hope to contact you in the near future for more matured and profitable advice.

  2. Joseph Godwin Peter

    I am a retiree interested in starting sachets water production business and having gone through your well researched piece on it, I’ll appreciate if you can give me the cost benefit analysis of the project.

    Thanks. Remain bless please.

    Joseph G. P.

    • Henry Ibeleme

      Hello Joseph..

      If you’re very serious to start this business, I would advice you conduct a Good feasibility study. Through that, you’ll know what’s needed and their cost estimate.

      The equipment or machines needed to start this business is very expensive depending on how sophisticated they are, that’s no doubt what made it to be a capital intensive venture.

      Do your research about the equipments needed, to know how much that will be required.

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