How to start Domestic RO Business in India 2021 – Costs, Profits, ROI
Nowadays people do not prefer drinking normal water or the tap water that is commonly used in India by people. But with increasing awareness, people are more inclined towards mineral and purified water, especially the one filtered through the Reverse Osmosis system. With so many health-conscious people out there, starting a RO mineral water business would turn out to be a good decision that you would take.
As different from Tap water, Mineral water is safer and healthier. People have realized the importance of consuming safe water, and the disadvantages of consuming water that is unfit to drink. Another major contribution is the awareness of the harmful diseases that are arising by consuming water that is harmful, this has boosted the business of RO and Mineral water.
As water is a basic need for humans, the consumption of mineral water has increased over the years, it has a market potential of around Rs. 162 Million in the year of 2018. The numbers have been growing overwhelmingly since the current three years and so on.
In India, many of the areas, including urban and a few rural ones do not have the facilities of safe drinking water provided by the government. In such areas, that are neglected by the government, people prefer using water purifiers at their home, thereby increasing the demand in the market.
With so much of health benefit, the RO or Water purifier making business has huge demand in the market, thus being profitable for the business owner, let us have a look at the entire roadmap for RO or Mineral water making Business.
1. License Required for RO or Water Purifier Making Business
A. ISI certification from Bureau of Indian Standards (BIS)
B. Food Safety and Standard Authority of India
C. Pest Control Certification
D. Pollution Control Certification
E. Current Bank Account
F. Trade Mark
G. GST Registration
H. Trade License
I. Firm Registration
J. Water test report from an Authorized laboratory
2. Investment required
Investment would be the major concern when it comes to RO or Water Purifier business, as the funds that you would require for starting this business would be huge. The machineries required would take away most of your funds, hence be it a medium-scale or a large-scale business the investment would be more than 30 lakhs.
|Medium Scale||30 to 40 lakhs|
|Large Scale||40 to 60 lakhs|
3. Expected Profits that can be Made.
The Major challenge with RO or Water Purifier business is the capturing of the markets. As we already know that the demand for mineral water is on a good scale, yet diverting people’s attention towards your brand would be a difficuly task, which if achieved would at least grant you an expected profit number of Rs. 90000 to 2 lakhs per month.
Health- conscious people and increasing awareness of using mineral and safe water for drinking make things easier for businesses dealing with mineral water and Water Purifiers, and hence it can get you a huge number of profits if done correctly.
In a large-sized RO or Water purifier Making business with efficient machineries and good quality, you can even earn more than 2 lakhs per month.
4. Target Consumers
A. Local shops: Local shops are the nearest and easily accessible stores that are near your locality. You can ask them to sell your water, for displaying the quality of your making.
B. Retailers: You would always find mineral water bottles at retail stores, they stock them in good numbers and that too of different brand, with good strategy you can get them to sell your mineral water.
C. Supermarkets: Supermarkets, known as a target audience that would grant you orders in a bulk for a longer period of time. However, in the case of RO, or mineral water, there would not be bulk orders unless the mineral water is tried and tested, and enjoyed by the customers.
D. Online Retail Stores: Digitalization is the new age for businesses, you can list your mineral water and your services on the various Online Retail stores, hence reaching an audience that is beyond your scope
5. Raw Materials required
Just like any other business, you’d require some raw materials, that would act as a base for your product quality. The following are the various types of raw materials that are required for the ROMaking business.
A. Bottle Loaders
B. Lots of Bottles
E. Packaging Materials
H. Sand Filters
I. Chlorine for Chlorination process
J. Carbon Filters
6. Equipment Required
Along with raw materials, you would also require various equipment that would help you to process the Soaps further at each stage. The Equipment ranges from various start to end processes.
A. Storage Tanks
D. Water Treatment Machineries
E. Weighing scale
G. Miscellaneous equipment
H. Water filing machines
I. Water Dispensaries
7. Manpower Required
For Ro or Water Purifier business you would require only skilled workers, because unskilled worker may slow down the process of manufacturing and the second reason is that the machineries would cost you a heavy dime, hence any irregularities may incur you a loss.
A. The number of manpower that would be required to set up a medium-scale based RO or Water Purifier making business would be around; 2 to 3 skilled workers. However, depending on the type of machine, the number can be more.
B. On the other hand, the manpower that you would require for a large-scale RO or Water Purifier making business would be; 5 to 7 workers at the most, once again depending on the machineries you select for your business.
8. Profit Margin
In RO or Water Purifier Making Business, with a quality and well-tasted mineral water and good packaging and look of the bottles, along with a competitive rate, you can expect to keep a profit margin between 15% to 35%.
9. Area Required
For Ro and Water Purifier business you would require a large area for storing the raw materials, equipment, and for the production unit to work smoothly. On an average even a small-scale business would require a minimum area of 1000 sq. feet for their manufacturing unit.
10. Some Useful tips to start your Business
1. Location: Your manufacturing unit should always have a minimum of 1000 sq. feet of area. Another important aspect is to have your location surrounded with enough supply of water and electricity. It should also be closer to your suppliers, for any urgent need of raw materials.
2. Marketing: Your Marketing campaigns should be strong and targeted in order to get more attention for your brand or your mineral water. It is not easy to compete with established brands, especially big ones like Bisleri, hence your campaigns should be well.
3. Vocal for Local: Best way to create that brand name or get more attention towards your business would be to promote your mineral water with people who live in your locality, this would help you create the initial level of word of mouth.