FEASIBILITY REPORT ON THE ESTABLISHMENT OF

A TABLE (SACHET) WATER FACTORY

BY

ADIMA OKENNA CHIKA B.Sc. (INDUSTRIAL CHEMISTRY), MCSN

PRACTICAL EXPERIENCE IN THE FIELD:

NAFDAC REGULATORY OFFICER 2009 - 2010

PRODUCTION MANAGER; NGIKI TABLE WATER 2010 - 2011

FEB., 2011.

TABLE OF CONTENT

Definitions / Introduction

Equipment and Materials

Registration Requirements

Financial Breakdown

Cost of Production / Expected Income (profit)

DEFINITIONS/INTRODUCTION

DEFINITIONS

Potable water is water which is fit for consumption by humans and other animals. It is also called drinking water, in a reference to its intended use. Water may be naturally potable, as is the case with pristine springs, or it may need to be treated in order to be safe. In either instance, the safety of water is assessed with tests (physical, chemical and biological) which look for potentially harmful contaminants.

INTRODUCTION

The availability of potable water remains a global challenge; as such its

importance cannot be overemphasized. Though, in Nigeria for instance, we have

abundance of water, but the question remains, how safe are they for human

consumption.

Owing to this prevalence situation, there is the essential need for potable water

for our consumption which comes in difference forms and packaging. For the

purpose of this report, our focus is on portable sachet water which is both safe

and affordable.

The production of sachet water involves a lot of process which must be followed

to the later as guided by the regulatory body responsible for portable water in

Nigeria (NAFDAC).

This report provides a vital guide on how to establish potable sachet water factory

and it is drawn from rich theoretical and practical knowledge and experience of

the author.

EQUIPMENTS:

In the treatment and production of sachet water, some equipment is needed for

these processes and they are as follows:

a. Automated Packaging Machine

This is an automated machine designed to package and seal the water

containing LDPE and it comes in different make and design as well as prices.

Notably among the machines are “KOYO” and “DINGLI” packaging

machines.

b. Treatment Plant

This comprises primarily the activated carbon filter, industrial sand filter,

dosing machine and micro-filters. This is the most vital aspect of the

process as it is where the water coming from the raw water tank is purified

before sending it to the pre-treated tank. This is equally where all the

necessary chemicals needed for water purification are added.

c. Borehole

The regulatory body (NAFDAC) approves two major sources of water which

are borehole and public water source, but the former is more preferable

and advised due to its reliability and availability. The recommended dept of

the borehole is about 150ft (30m) and should be at least 30m away from a

septic tank.

d. U.V Sterilizers

These are primarily to sterilize and purify the water for safe consumption.

For water treatment, two are required; U.V water sterilizer which is the

final treatment for the water before being packaged by the automated

machine.

The second is a U.V light needed at the packaging material store to sterilize

the materials before its usage.

e. Pumping Machine

Two pumping machines are needed in a water factory. The first being in-

between the raw water tank and the treatment plant to enable pump

water from the raw water tank into the pre-treated tank through the

treatment plant. The recommended type is 1ph (i.e one power horse)

capacity and the second before the production room.

f. Micro-Filters

These are filters capable of filtering off particles and sometimes microbes,

depending on the size of the filter. This could be domestic or industrial

filters, but for high efficiency and quality, industrial filters are preferable.

Five (5) filters of different sizes are required; two at the treatment plant

(5microns and 1micron), while three are needed at the production room

just before the U.V sterilizer (5microns, 1micron and 0.5micron) in a

descending order.

g. Water Tank

Two tanks (@ least) are essential for water treatment; one for raw water

and the other for pre-treated water. PCV tanks are recommended as this

reduces contamination and it comes in difference sizes, preferably 5000L

h. Vehicle

A van is needed for transportation. The available capital determines the

one to buy as this varies in capacity and prices as well.

MATERIALS:

a. Packaging Materials

These are polythene materials needed for sachet water packaging.

Majorly, two kinds are essential; sterilized LDPE material with all the

necessary information printed on it and it is used for packaging the

water in sachets.

The second is a transparent polythene bag used for packing the sachets

(20 sachets per bag) as applicable here.

b. Plumbing materials

These are materials needed for plumbing works in a water factory.

These are PVC pipes, gums and other plumbing materials essential for

water treatment plant.

c. Registration

Three major registrations are needed for a sachet water factory. The

first being registration with CAC (i.e in a case where the factory is not

affiliated with an already existing company). The second is the product

registration (Trade Mark) with the Fed Min of Commerce and Industry

for a product name and finally registration with NAFDAC which is the

regulatory body responsible for such and these involves some

documentation as specified by the Agency.

d. STAFFING

For a factory to exist and be registered with NAFDAC, at least five (5)

staffs are needed, namely; the production manager who must be a

scientist, a machine operator, a bagger, a loader and a driver. The

emphasis is only on the production manager, the others could be any

body as the case may be.

FINACIAL BREAKDOWN (ESTIMATE)

S/N ITEMS COST(N) 1 Land/Factory building 2,000,000.00

2 Automated packaging machine 500,000.00 3 Vehicle 1,500,000.00

4 Borehole/water tanks 200,000.00

5 Treatment plant/chemicals 300,000.00 6 U.V sterilizers 60,000.00

7 Pumping machines 50,000.00 8 Registrations 200,000.00

9 Micro-filters 40,000.00

10 Plumbing works/installation 80,000.00 11 Packaging Materials 100,000.00

12 Staffing 200,000.00 13 Miscellaneous 400,000.00

14 Dosing machine 100,000.00 TOTAL 6,000,000.00

COST OF PRODUCTION AND EXPECTED INCOME (PROFIT)

1. Cost of packaging materials

a. Sterilized LDPE: This comes in Kg and a Kg costs N430. A kg produces at

least 20 bags. Therefore, a bag costs N21.5k.

b. Transparent Polythene bags: This material comes in pack and each pack

contains six bundles and each bundle contains nine hundred pieces. A

pack costs N16, 200. Therefore, each piece costs N3.00.

2. Cost of labour (Subjective)

a. Production manager-------------------N3.00 per bag

b. Bagger ------------------------------------N2.50k per bag

c. Machine operator ----------------------N1.50k per bag

d. Loaders -----------------------------------N2.00 per bag

e. Sales personnel/cleaner ---------------N1.00 per bag

f. Driver -------------------------------------N1.00 per bag

TOTAL COST OF LABOUR --------------N11.00 per bag

3. Cost of fuel (vehicle and generator): N4, 000.00 per day.

In an average of 1000 bags per day, cost of fuel per bag will be N4.00 per

bag.

TOTAL COST OF PRODUCTION: N24.5K + N11 + N4 = N40.00 per bag.

EXPECTED INCOME (PROFIT) = SELLING PRICE – COST OF PRODUCTION

= N60.00 – N40.00 = N20.00 PER BAG

EXPECTED DAILY PROFIT IN AN AVERAGE SALE OF 500 BAGS PER DAY

= 500 X N20 = N10, 000 PER DAY

= N300, 000 PER MONTH

= N3, 600, 000 PER YEAR.