Packaged Drinking Water Quality and Standards Production Capacity Uploaded on Product and Its Applications Most of the

water borne diseases emanate from unclean water. Packaged drinking water ensures safe, clean, potable water for human consumption. 2.0 Market Potential Though a large number of manufacturers have recently taken up production of packaged drinking water, yet there exists a wide gap between demand and supply. A number of units can be set up in North Eastern Region to meet the local demand in institutions, hotels, restaurants, offices, tourist and household. 3.0 Basis and Presumptions a) The unit will work for 300 days per annum on single shift basis. b) The unit can achieve its full capacity utilization during the 2nd year of operation. c) The wages for skilled workers are taken as per prevailing rates in this type of industry. d) Interest rate for total capital investment is calculated @ 12% per annum. e) The entrepreneur is expected to raise 20-25% of the capital as margin money. f) The unit would construct its own building. g) Costs of machinery and equipment are based on average prices of machinery manufacturers. 4.0 Implementation Schedule Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below: Scheme preparation and approval SSI provisional registration Sanction of financial supports etc. Installation of machinery and power connection Trial run and production 5.0 Technical Aspects 5.1 Location The plant can be located and market access is ensured. 5.2 Process of Manufacture The flow chart of the process is as follows: Refer Last Page. 5.3 Quality Control and Standards: As per BIS requirements 6. 0 Pollution Control There is no major pollution problem associated with this industry except for disposal of waste water which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board. 7.0 Energy Conservation at any suitable place where availability of clean water, power, PET bottles : : : : : 01 month 1-2 months 2-5 months 6-8 months 01 month : As per BIS specifications : 45 lakh bottles of 1L capacity/annum : October 2007

Suitable measures shall be taken to conserve electricity. 8.0 Production Capacity Quantity Installed capacity Optimum capacity utilization Working days Manpower Utilities Motive Power Water 9.0 Financial Aspects 9.1 Fixed Capital Land 2000 sq.m. Built up Area 700 sq . m. Total cost of Land and Building 9.1. 2 Machinery and Equipment Amount (Rs. lakh) 28.00 2.80 1.20 32.00 : 01.50 : 24.50 : 26.00 : 4 0 kW : 2 5 kL/day : 4 5 lak h litre/annu m (15,00 0 L/day) : 20,00 0 L/day : 70% : 300/annu m ( 3 shifts) : 18

Description

UF based purification system (Sand filter, chlorination unit , UF membranes, sterlisation unit , SS silverisatio nunit, skid, electronic : doser, ozone generator, water collection tanks, Quality control laboratory, deep borewell, delivera y van Erection and electrification @ 10% of machinery cost Office furniture & fixtures Total 9.1.3 Pre-operative Expenses Consultancy fee, project report, deposits with electricity department etc. 9.1. 4 T otal Fixe d Capital (9.1.1+9.1.2+9.1.3) 9.2 Recurring expenses per annum 9.2.1 Personnel Salary Per month 6,000 5,000 4,000 3,500 2,500 2,000 : : :

3.00 61.00

Designation Factory Manager Production Manager/Chemist Supervisory staff Office Assistant Skilled workers Unskilled workers

No . 1 1 6 2 4 5

Amount (Rs.lakh) 0.72 0.60 2.88 0.84 1.20 1.20

Total Perquisites @ 10% Total 9.2.2 Raw Material including packaging materials Qty. (MT) 45 lakh -LS1,88,000 18

7.44 0.76 8.20

Particulars Pet bottles including caps, labels, 1L size Chemicals Corrugated boxes bottles Total 9.2. 3 Utilities Power 180,000 kW Water 25 kL/day Total 9.2.4 Other Contingent Expenses Repairs and maintenance@10% Consumables & spares Transport & Travel Publicity Postage & stationery Telephone Insurance Total

Rate 3.60 each -LSRs . 20/24

Amount (Rs.lakh) 162.00 006.00 037.60 205.60

Amount (Rs. lakh) 4.92 0.28 5.20 Amount (Rs. lakh) 3.20 1.20 0.40 0.05 0.08 0.13 0.44 5.50

9.2.5

T otal Recurring Expenditure (9.2.1+9.2.2+9.2.3+9.2.4)

Amount (Rs. lakh) 224.50

9. 3

Working Capital Recurring Expenditure for 3 months 56.13 Amount (Rs. lakh) 61.00 56.13 117.13

9.4 Total Capital Investment Fixed capital (Refer 9.1.4) Working capital (Refer 9.3) Total 10.0 Financial Analysis 10.1 Cost of Production (per annum) Recurring expenses (Refer 9.2.5) Depreciation on building @5% Depreciation on machinery @10%

Amount (Rs. lakh) 224.50 1.23 3.08

Depreciation on furniture @20% Interest on Capital Investment @12% Total 10.2 Sale Proceeds / Annual turnover Item Sale of packaged drinking Water in PET bottles cap. 1L, packed in cartons of 24 bottles each Total 10.3 Net Profit per year = Sales - Cost of production = 270 - 243 = Rs. 27 lakh 10.4 Net Profit Ratio Netprofitx100 = -------------------Sales 27X100 = ---------------270 = 10% 10.5 Rate of Return on Investment Netprofitx100 = -------------------Capital Investment 27X100 = ---------------117.13 = 23% 10.6 Annual Fixed Cost Al l depreciation Interest 40% of salary , wages, utility , contingency Insurance Total 10.7 Break even Point AnnualFixedCostx100 ---------------------------Annual Fixed Cost + Profit 26.50X100 ---------------26.50 +27

0.19 14.00 243.00

Qt y. (MT) Rate per bottle 45 lakh 6.0 0

Amount (Rs. lakh) 270.00 270.00

Amount (Rs. Lakh) 4.50 14.00 7.56 0.44 26.50

= 49.5% 1 1.0 Addresses of Machinery and Equipment Suppliers Sonalifabs 71, Biren Roy Road (West) Kolkata 700 061 Enviro Tech Utility, 32A, Main Patel Nagar Road, Opposite Wings Show Room West Patel Nagar New Delhi 110 008 Watrion Water and Filter Engg. Pvt. Ltd. 1, Harsivan Apartment, Ground Floor (Behind Canara Bank) West J.P.Road, Andheri (West) P.B.No. 7372 Mumbai 400 059 Contact for more information: Information Manager TIMEIS Project E-mail: timeis@ficci.com