Understanding the Profit Margin of Mineral

Water Plant at a Small Scale Level

Starting a mineral water plant at a small scale has a higher profit margin
that generates greater revenue at a higher pace.

We all know that water is a basic necessity of human beings and doing a
business with it is a perfect idea. The rising population in India, almost 2-
3%every year projects that there is good scope of setting up a mineral water
plant in India irrespective of the competition level prevailing in this
industry. Though there are a number of giant player in this industry like
coca-cola, Bisleri, Kingfisher etc. the bottled water industry is still expected
to grow in the near future. Almost total revenue of 1600 crores can be
earned from the business in the running year. This growth is better than
the previous year as the revenue generated is increasing at a high pace up
to 30-40% compared to the last four years.

If you are planning to start this business at a small scale level in your
locality, then it will be one of the most lucrative and profitable business.
And if you take the franchise of big brand then it is even more profitable.
You can open a Kinley water bottling plant in Kolkata and distribute
water jars to the retailers or to the houses at a minimal rate which will

slowly increase your market reach hence, leading to the higher mineral
water plant profit margin.

If you are still perplexed as to what should be your plant size and capacity
then given below are some tips.

Plant layout cost for small-scale business

2000 LPH economic plant

An economic plant always has all the facilities and machinery that of a big
plant along with this you can also ensure high-quality output. To build up
an economic plant you need almost 2000 sqft and the building cost can
vary up to 16 lakhs. 70% of the funds can be arranged from financial
institutions as a business loan. Being a Coke bottler in India you can
benefit a lot by manufacturing and selling their mineral water product as
Kinley has a greater hold on the market. Moreover, the product doesn’t
need to establish its brand recognition in the market as people are already
aware of it.

What is the profit margin?

Mineral water plant can be easily set up provided you have an excellent
business plan. For small bottles, you can expect a profit margin of 15%
approximately and for the large bottles, it is around 60%. Therefore, it can
be stated that an average profit margin of a mineral water plant in small
scale will vary between 25%-30%.

Hence, it is a good business option as it has a higher profit margin by

investing only a certain portion of your capital.