Sachet and Bottle Water Production in Nigeria; The Feasibility Report.

Water is one of the most essential commodities for the survival of all lives. It is abundant in nature and occupies about seventy percent (70%) of the earth’s crust.

However, safe drinking water is very scarce hence the need for processing, treatment and proper packaging of water before consumption.

Quality and taste are the two (2) parameters that differentiate bottled water from tap water. The major difference between the two is that tap water contains chlorine, which is added to prevent water from recontamination, as it moves out through pipes for domestic supply.

Bottled waters, spring water in particular, contain approved levels of chloride, nitrate, chloride, sodium and sulfate. Most of the bottled water is sourced from protected reservoirs such as artesian wells, springs, and drilled wells.

There are increasing concerns regarding various health problems such as neurological disorders, gastrointestinal diseases and reproductive problems caused by the consumption of contaminated water, which is leading to an increase in demand for clean and hygienic bottled water in Nigeria.

If the water is properly packaged, it is protected against any kind of bacterial contamination, regardless of the storage time. There is a marked shift in consumers in favor of safe, healthy and refreshing beverages that are free from calories, caffeine and preservatives.

The global bottled water market size was valued at USD 217.66 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of eleven point one percent (11.1%) from 2021 to 2028. Portability, easy usage and installation process, and minimal maintenance costs are the key factors to drive the market over the next few years.

Furthermore, rising consumer consciousness towards the health benefits of consuming bottled water is projected to drive market growth.

Inclination towards bottled water rather than ordinary water, particularly among younger consumers, drives product sales. Observing this trend, several restaurants are providing bottled water to meet consumer demand. Water seems to have hit a sweet spot with health-conscious buyers.

The rapid expansion of restaurants in Nigeria is also foreseen to create a significant demand for bottled water in the upcoming years.

In recent years, plain and flavored varieties of still and sparkling water have become widely popular beverages at the global level. This is an emerging megatrend and is foreseen to remain prevalent in the coming years. With increasing health consciousness, consumers are opting for packaged water and reducing the consumption of sugary drinks.

Widespread home isolation orders have spurred the demand for bottled water among households across the globe. According to the International Bottled Water Association (IBWA), bottled water businesses have boosted their production capacity to cater to this demand surge.

This includes increasing bottling capacity, obtaining extra production and packaging materials, and consulting with retailers to determine the demand. The current scenario has also driven the need for transparency in the industry as consumers have become more aware of health and hygiene practices.

The market for water is national.With a population of over two hundred million (200,000,000) people and an estimated national population growth rate of five point seven percent (5.7%) per annum, Nigeria is a large, expanding and sustainable market for water.

This report is to examine the financial viability or otherwise of establishing a sachet and bottle water production plant in Nigeria.

The proposed project is would comprise of two – sachet water packaging plant with production capacity of two thousand, three hundred (2,300) pcs of sachet water per hour and one automatic water bottling plant with production capacity of three thousand (3,000) bottles of seventy-five (75) cl bottle water per hour. The plant would operate for eight (8) hours per day and twenty-five (25) days per month.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Value Proposition 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start - Up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Statement 5.7 Cash flow Statement 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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