The sachet water business often attributed to as ‘pure’ water is one of the remunerative small scale businesses in Nigeria. The business is not certainly a large scale business, as it may require less capital and resources to start. With the available market in the country, pure water business has been thriving, delivering profits to its owners. This merits of the business has made a lot of entrepreneurs and also people to inquire about how to successfully start sachet water business in Nigeria. This article will investigate into what’s involved in pure water business, and sequentially outline the guides on how to start the business anywhere in the country.
Pure water business is the enterprise of producing sachet water to the market. In most cases, the business expand to the marketing and selling of these produce for consumers or most times retailers. There are many things and inputs involved to facilitate this type of business. From the plan, production, to the marketing, all these contribute to the success of the business. There are some good number of people who might want to venture into the pure water business in Nigeria. We have come up with this guide so as to give you clues on what involved in starting the business in the country.
STEPS ON HOW TO START PURE WATER BUSINESS IN NIGERIA (2022)
Just like any other business, there are some important things which needs to be in consideration before starting the pure water business. The market today is very much filled with lots of competing producers and sellers. But you won’t decline your interest because of these numbers, rather, they give you a competition to come out as the best. Before starting pure water business, the following guide should be followed in order to break into the vast business in Nigeria.
Below are step by step guide on how to start pure water business in Nigeria;
STEP 1: HAVE A BUSINESS PLAN
Firstly, you ought to have a plan for what you’re intending to start. This plan will be obliging in a way that it will include all what your business will be. To help establish from the onset of the financing of the business – the amount of money needed, then the business plan should include these costs. Business plan is very important in this early stage because it determines the level of funding required and the immediate or potential sources of it. Your plan should also cover some important things like accommodation. On the starting level, the pure water business can accommodation can range from using a two bedroom flat to blocks of flats, depending on which category and the size of the proposed business.
STEP 2: GOOD LOCATION FOR FACTORY SITE
When intending for a good location for your pure water factory, always contemplate on a connected and market favorable place. You should settle for a suitable accommodation, with access to the market or put up a suitable accommodation. The location of your pure water factory should also be near and accessible to the market and cost of acquisition places. Nonetheless, other facilities must be in place in the factory site, these include essential production factors such as security of the factory, power, access road, and other stuff.
STEP 3: SOURCE OF WATER
Starting a pure water factory and hence obtaining the mandatory certification, requires the source of your raw water. This is very important as it’s one of the prerequisites for getting backings by several registration bodies like NAFDAC. In the business, water is the raw material, and it defines the enterprise. Your business should have a constant source of clean water to put the fracking lagoon aeration systems into good operation. For this kind of business which will constantly need water, it’s preferably you have a borehole in your factory site.
STEP 3: NAFDAC REGISTRATION
Obtaining the government approval for your pure water business is an important thing you ought to look at. First, you must meet the requirements: factory site, source of water and the environmental issues. After meeting these prerequisites, you have to register with the agency in charge of food and drug regulation in Nigeria, which is NAFDAC. The cost of registering with the agency is about ₦30,000 or more. Without approval and certification from the agency, you cannot produce pure water in the country. Getting registered with NAFDAC is a primary and one of the most important step in setting up a pure water business in Nigeria.
STEP 4: FACILITIES
What distinguish your pure water factory products from other ones is the variance in quality. This is greatly influenced by the facilities that are in place to facilitate this production.
- The Water Purification System is a critical equipment for your pure water business. It’s what makes your sachet water different and sellable than others competing ones. For this reason, you need a very good water purification system. There are several water purification methods such as Distillation, Reverse osmosis, Carbon filtration, Ultra-violet light filtration system and several others. However, the Ultra-Violet light filtration and Reverse Osmosis are the most commonly used water filtration systems in Nigeria. But the latter type of filtration system is preferred with respect to mass production.
- Another facility is the sealing machine. There are different types of sealing machines from the very small ones to the huge, and automatic ones which is more sophisticated. You should chose from and settle for a good sealing machine for your factory. In terms of quality, efficiency and time, it is recommended to purchase one of those specialized automatic pure water making lines with multiple functions such as filling, sealing, counting, cutting packaging and bag making. These machines may be expensive as it cost about ₦500,000, but if you can afford it, it’s best for your pure water business.
STEP 5: STAFF AND FACTORY WORKERS
You will need a good working strengths, because there are a lot of procedures involved in pure water manufacturing. Even though it involves some automatic line of production and use of machines, it needs a lot of skilled manpower in doing the business. As such, the business, mostly on manufacturing, it is not something one person can handle. You would need workers to help you out with loading and off-loading, counting, driving, accounting and supervision. However, starters and new pure water business would need a considerate number of people to be working.
STEP 6: DISTRIBUTORS AND VAN
Preferably, your pure water business should have distributors registered under the company. These are marketers that would get your products at special, reduced prices and in turn, sell to others for a profit. This would guarantee quicker sale and easier distribution of your products.
The distribution van is another thing you would need in the business. This is a conveying vehicle that will help you with supplying products to customers easily.
COST OF SETTING UP A PURE WATER FACTORY IN NIGERIA
The capital needed to setup a pure water factory depends on the location, prices of equipment and machines needed to start the pure water business itself. Since its a very profitable business, it would require over ₦3 million to ₦5 million to start a moderate pure water factory business from start to finish in Nigeria.
You should note that pure water factories vary in level and size. The type or standard of the pure water factory you want to establish would determine the amount needed to start one. Registration fee with Corporate Affairs Commission (CAC), NAFDAC approval fee, Equipment purchase, Supply expenses, etc are just a few things you should have in mind when calculating how much it would cost you to set up a pure water factory in Nigeria.
NAFDAC REQUIREMENTS TO GET PURE WATER PRODUCTION APPROVAL
It is the duty of the National Agency for Food and Drug Admission and Control (NAFDAC) to inspect and approve every pure water facility in Nigeria and provide a NAFDAC Number certification for such purposes. The following are the criteria set forth by NAFDAC for approval and certification of pure water production in Nigeria:
- For a factory inspection, submit an application and payment. A 5% VAT fee will be added to each payment.
- Make sure the following are configured correctly before requesting an inspection.
- A well-built factory building
- Arranged production space
- A trustworthy water supply
- Properly constructed tanks and reservoirs
- Plant for treating water
- Taps and Pipes
- A spotless and sterile setting
When all these guides are applied in starting a pure water business in Nigeria, it will lead to a profit generating business enterprise. We believe you now have an idea of how to start a successful purewater business of this kind in the country.