The demand for mineral water has soared to unprecedented levels today. Unlike regular drinking water, people now lean towards purchasing mineral water due to its unparalleled purity and hygiene. This escalating demand is disrupting the entire supply chain, compelling existing plants to ramp up their production. Consequently, this surge in demand is enticing new entrepreneurs to venture into setting up a mineral water plant across India.
What makes this business model particularly attractive is its relatively low investment requirement while ensuring long-term profitability for the owner. This blog comprehensively addresses all crucial aspects of setting up a mineral water plant in India.
Packaged Drinking Water Vs Mineral Water Plant
Packaged drinking water and mineral water differ in their sources and purification processes.
Packaged drinking water is sourced from various sources of drinking water, which then undergo filtration stages like cartridge filter, activated carbon filtration, or other methods to meet regulatory requirements. It may also undergo disinfection to ensure it is safe for consumption and free from harmful contaminants. The source of water for packaged drinking water can range from borewells, public drinking water systems, or other approved sources, including supplies via pipelines if the source remains consistent.
A mineral water plant utilises naturally occurring sources of water like say mountain water and spring water. This water contains essential minerals which offer numerous health benefits to consumers.
While packaged drinking water is processed to meet safety standards, mineral water is sourced from natural springs or mountains, containing valuable minerals beneficial for health.
Growth Prospects of Setting up a Mineral Water Plant in India
Setting up a mineral water plant in India has witnessed significant growth due to several factors, including the demand for safe drinking water, a burgeoning population, an influx of overseas students and tourists, concerns about tap water quality, and increasing health awareness.
Demand Drivers for setting up a mineral water plant in India
The major drivers for setting up a mineral water plant in India are:
1. Population Growth
India’s substantial population growth has contributed to the increased demand for bottled water. With more people seeking access to safe drinking water, the market continues to expand.
2. Inflow of Overseas Students and Tourists
The influx of overseas students and tourists has further fuelled the demand for bottled water. Visitors often rely on bottled water to ensure their hydration needs are met, contributing to the industry’s growth.
3. Health Awareness
Rising health awareness among Indians has led to a preference for safe and clean drinking water. This health-conscious consumer base is a key driver of the mineral water industry.
Private Sector Dominance
While the Indian government has struggled to provide pure drinking water to all citizens, private entities have stepped in to not only fill the gap but also establish a robust business presence. Leading water companies in India are actively expanding their market share through effective marketing strategies and appealing packaging.
Market Size and Growth
As of FY 2018, the Indian bottled water market was valued at approximately Rs 160 billion. It is projected to experience a Compound Annual Growth Rate of 20.7% and reach an estimated valuation of Rs 403.06 billion by 2023.
In FY 2018, the 1-liter bottle segment held the largest market share at nearly 14%. This was followed by the 500 ml and 250 ml bottle segments. The market volume is expected to reach 35.53 billion liters by 2023, with a CAGR of 18.2% from 2018 to 2023.
Flavored Bottled Water in India
In recent years, flavored bottled drinking water has experienced a surge in demand across India. Various flavored water options, including those with artificial sweeteners, fruit essence, and other sweetened beverages, serve as alternatives to plain bottled water. End-users are increasingly opting for these flavored products, presenting an opportunity for bottled water manufacturers in India to diversify their product lines.
Mineral water has become an essential commodity for the masses, creating a viable business opportunity for new entrepreneurs. The growing consumption of bottled water makes the mineral water industry an attractive venture for startups in India.
So, setting up a mineral water plant in India is poised for continued growth due to increasing demand for safe drinking water, population growth, and changing consumer preferences. Entrepreneurs in this sector can tap into this lucrative market by offering innovative products and catering to the evolving needs of health-conscious consumers.
Blueprint for Setting Up a Mineral Water Plant in India
The steps to be followed for setting up a mineral water plant in India are as follows:
Step 1: Select an Appropriate Location
For setting up a mineral water plant in India, start by choosing an ideal location. You’ll need a minimum space of 1000 sq ft for your plant. Optimise the layout to accommodate the necessary equipment efficiently. Consider proximity to distribution areas to reduce transportation costs.
Step 2: Procure Required Machinery and Raw Materials for Setting up a mineral water plant in India
1.Select the Right Machinery: Choose the appropriate machinery based on your budget and packaging preferences. Decide between semi-automatic and fully automatic machinery to align with your business goals.
2.Raw Materials Needed:
- Reagents
- Bottles
- Chemicals
- Bottle caps
- Cartons
- Pouches
Step 3: Obtain Mandatory Licences and Registrations
Ensure legal compliance by acquiring the following licences and registrations when setting up a Mineral Water Plant in India:
1.Licences and Permits: Identify the specific licences and permits required based on state government regulations.
2.Registration of Firm/Company: Consider registering your business as a company to establish it as a separate legal entity. This can provide protection for personal assets in case of legal issues.
3.ISI Certification: Obtain the ISI certification issued by the Bureau of Indian Standards for compliance with Indian standards for drinking water.
4.Test Reports: Get test reports for both raw and processed water from a Local Water Testing Laboratory as part of the BIS compliance process.
5.Food Licence: Apply for a food licence from the Food Safety and Standards Authority of India to meet stringent norms for mineral water plants and avoid penalties.
6.Small Scale Industry Registration: If eligible, apply for SSI registration to access government subsidies and benefits for small-scale industries.
7.Pollution Control Certificate: Obtain a pollution control certificate from the State Pollution Control Board by submitting the required documents and information.
Step 4: Other Key Certifications and Compliances
Ensure compliance with additional certifications and compliances when setting up a Mineral Water Plant in India:
1.Degree and Medical Certificates: Ensure that officials involved in the water filtration process possess the necessary degrees and medical certificates.
2.Microbiologist Certificates: If required, obtain microbiologist certificates for testing personnel.
3.Medical Certificates for Workers: Ensure that workers have valid medical certificates.
4.No Objection Certificate from Gram Panchayat: Obtain an NOC from the local Gram Panchayat.
Step 5: Additional Essential Compliances
Consider the following essential compliances for your mineral water plant:
1.Prevention of Food Adulteration Act, 1954: Comply with this act to protect the interests of end-users and maintain the quality of food and beverages.
2.Groundwater Use Regulation: If applicable, adhere to regulations set by the Ministry of Water Resources and the Central Ground Water Authority for groundwater use.
3.Borewell Registration: Ensure compliance with Section 5 of the Environment Protection Act, 1986, by registering bore wells according to prescribed guidelines.
By following these steps and obtaining the necessary licences, certifications, and compliances, you can successfully enable setting up a mineral water plant in India.
FSSAI Standards for Mineral Water Plant
The Food Safety and Standards Authority of India has established specific standards that must be adhered to by mineral water plants to ensure the safety and quality of the water produced. These standards encompass various phases of treatment and packaging:
Treatment Phases:
1.Decantation: The initial phase involves the settling of particles and impurities in the water through decantation.
2.Filtration: The water undergoes various filtration processes, which may include:
- Combination of filtration methods
- Aerations
- Filtration with membrane filters
- Depth filters
- Cartridge filters
- Activated carbon filtration
- Demineralisation
- Re-mineralisation
- Reverse osmosis
Disinfection:
Packagers are required to ensure that the mineral water is thoroughly disinfected using either chemical agents or physical methods. During this treatment, the packager must maintain the level of microorganisms below the scientifically accepted threshold to guarantee the safety of the production process.
Treatment of Seawater and Packaging::
In cases where seawater is used as a source, packagers must employ the desalination process to make it suitable for consumption.
Mineral water must be packaged in sealed containers of various compositions, capacities, and forms that are safe for direct consumption. These containers should meet all relevant safety and quality standards.
Final Thoughts
Setting up a mineral water plant in India is experiencing remarkable growth, driven by increasing demand for safe drinking water, a growing population, and heightened health consciousness. Entrepreneurs are drawn to this opportunity due to its relatively low investment requirements and long-term profitability potential. The distinction between packaged drinking water and mineral water lies in the source and natural mineral content, making mineral water a preferred choice.The industry’s private sector dominance, market valuation of projected 20.7% CAGR in 2023 signify its immense potential. For setting up a mineral water plant in India, entrepreneurs must follow a comprehensive blueprint, adhering to FSSAI standards, obtaining licences, and ensuring water quality through a multi-stage purification process. In conclusion, the mineral water plant business in India offers a promising avenue for entrepreneurs seeking growth in a vital industry.
