What Is the Profit Margin on Packaged Drinking Water?

Packaged drinking water plant business is a highly profitable business idea, which one can start with less expense. As per the industry analysts, after all the composition, advertising, and packaging charges have been considered, the profit margin for small-scaled drinking water packaging plants is a whopping 35%.

Furthermore, this blog will provide you with a detailed guide on starting a packaged drinking water plant in India. Also, you would get to know how you can succeed despite the considerable competition in this sector.

Prevailing and Future Survey of Packaged Drinking Water Plant Industry

According to the most advanced study by industry analysts, the market size of the water treatment technology sector is estimated to be at $ 145 082 million.

Furthermore, this estimate is likely to double and reach $ 192 715 million by 2022. Also, it is estimated to expand at an annual compound growth {CAGR} of 4.1% over the estimated period.

Packaged Drinking Water Plant and its Range in India

A mineral water plant is a system that guarantees the quality of drinking water and furnishes it to consumers. A mineral water plant is primarily concerned with cleaning raw water, bottling them up, labelling them, and selling them in the market.

If we talk regarding the scope of a mineral water plant in India, it has undergone a 30 to 40% hike in revenue in the last few years, and it is expected to increase in the future. As a result, the water plant industry is one of the fastest-growing industries in India, and its cost in 2018 was around Rs. 162 billion.

Water Purification Process:

Market Trends

• Flavoured bottled drinking water has graced famous in India. Different kinds of flavoured water carrying fruit essence and artificial sweeteners like cola, cola, juice, and other sugared beverages often substitute for plain bottled water. At times customers prefer flavoured bottled water to normal bottled water. This shift is forming an opportunity to expand the product line of bottled water plants in India.
• Apart from exclusive sales, market players in India have lately inclined towards institutional sales through partnerships with airlines, movie theatres, and hotels. Such alliances are eventually increasing the penetration of the product in the market, followed by a rise in India’s overall sales volume.

Market Challenges

• In recent years, many businesses selling fake stamped bottled water have cropped up in the market. These opponents do not maintain quality and hygiene standards, leading to health issues among consumers. As a result, customers lose trust in bottled water, thus influencing the overall sales.
• Nearly 67% of the people reside in rural areas. However, the rate of invasion of bottled water is significantly low in these regions. This, as a result, inhibits the growth of the market in India.

How Much Profit One Can Earn from a Mineral Water Plant?

This question is often proposed to us by many website visitors from time to time. And it is an essential factor indeed as far as an investor is concerned. It’s not just Profit Margin, but also the element to be considered for the R.O.I. (Return on Investment). This profit margin is evaluated in terms of percentage on the total sales or termed as “ Cost per Bottle.”

The Downside of Interest Margin Generalisation:

You will see many individuals state “Cost per Bottle,” with a Plan. But over time, people have come to know the downside of that. What is that?

The basis on which the Interest Margin is estimated should be a fixed set of Merchandise Mix that you have decided to provide and their quantities within a stipulated period.

5 Steps to Succeed at Bottling Plant Profit Margin:

1. Apprehend your business model: This is the offset point to all, whether you’re going to build your brand or diffuse to others, going for a license model, or getting it done from another bottling water plant on a Tri-Party Agreement one needs to decide a business model.
2. Choose the market: This is also the initial problem. Market to Market, the selling rates vary, so the Earnings as well, and the price also varies. This, too, influences the Profit Margin.
3. Determine your product mix: These are the modifications you determine to introduce into the market, with quantities defined clearly. A financial statement can only be carried with exact figures. One should begin with some hypothetical statistics, even if you haven’t yet decided on this.
4. Determine your Expense: Mineral water plant price is not just the costs of machines put together. It’s usually a wrong study by entrepreneurs before they are ready to set up their plants.
5. Develop time-bound financial projections: As we have understood from the above description, you will reach the profit margin percentage only over some time, i.e., typically three years. Therefore, once you are ready with the above four steps, you should accost a financial advisor to get the financial projections appropriately done.

Conclusion:
It would be best if you were kenning that the Packaged Drinking Water Plant is not a novel business. Therefore, you have to use a unique marketing strategy for your enterprise to make it successful. For instance, you can practice biodegradable water bottles or consumable bottles, which do not increase waste, etc.