Sachet 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.

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 packaged water to meet consumer demand. Water seems to have hit a sweet spot with health-conscious buyers.

The market for sachet water in Nigeria 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 sachet water.

Though the market for sachet and bottle water in Nigeria, the business tends to sale more in the northern part of Nigeria where hot weather is prompting people into drinking more water than usual and lack of clean pump water contributed in giving the business a good push up.

Sachet water is consumed on daily basis by all and sundry irrespective of age, social class or religion. The raw material required for the production of sachet water is water which is abundantly available in Nigeria.

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

The capacity of the plant comprises of two (2) – sachet water packaging plant with production capacity of two thousand, three hundred (2,300) pcs of sachet water per hour each and the plant would operate for eight (8) hours per day, twenty-five (25) days per month and three hundred (300) days per annum.

The water would be packaged in low density nylon and about fifteen (15) kilogrammes is required to produce four hundred (400) bags of twenty (20) sachets per bag.

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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