Establishing a Pure (Sachet) water Business in Lagos

Establishing a Pure (Sachet) water Business in Lagos

Introduction

According to Darlington Oweh, “A smart investor knows that the best product to deal on is the product in high demand, that automatically placed pure water production business “investor’s choice” any time. The demand doesn’t seem to go down very soon as it has become the most credible alternative means of getting anything close to clean drinkable water for the average Nigerian”

What you need to get started

1. Factory site (must not be located near a cemetery, refuse dump, fuel depot, septic tanks and pit latrines) 
2. Register your business name
3. Sink a borehole
4. Install overhead tanks (a reservoir to supply water to the distillation system)
5. Install distillation system
6. Get NAFDAC registration 
7. Automatic sealing machine (get the one that can seal about 40 sachets per minute
8. Nylon materials
9. Logo and product name printed on nylon material
10. Labor
11. Operator (1) for a start
12. Driver (1) for a start
13. Motor Boys (2)
14. Packer (2)
15. Cleaner (1)
16. Truck for distribution
17. Power Generating set- 25KVA
18. Running cost of between N 200,000 or thereabout for six months running

Start-up Costs

1. Factory site (4 bedroom bungalow) must be fenced around Lagos area: N400,000 to N450,000 annually
2. Business registration with CAC: N25,000 –N30,000 annually
3. Overhead tank: Between N25,000 and N30,000
4. Borehole: N250,000 in Lagos 
5. NAFDAC Requirements
6. Automatic sealing machine: N350,000 to N400,000 depending on the capacity.
7. Nylon materials: (This will be contracted to a maker; the first price is usually more because of the designing and printing of logo)
8. Printing names and logo on nylon
9. Labor:

1. Operator (1) for a start: N10,000 monthly
2. Driver (1) for a start: N2,000 per loading
3. Motor Boys (2) : N1,500 per loading
4. Packer (2): N1,500 per packing
5. Cleaner (1): N9,000 per month
6. Truck (Tokunbo): N900,000 to N1million (This price is not fixed, you can ask a car dealer for price list of trucks)
7. Power Generating set: (There are several makers which determine the price, check this link for price list: http://www.alibaba.com/showroom/25kva-diesel-generator-price.html)

Sales

One automatic sealing machine and one delivering van at 100% utilization will produce 40 sachets of pure water per minute which is equivalent to 120 bags in one hour.

You can produce between 500 to 700 bags with one machine in a day of your operator works for 4-5 hours per day.

If a bag is sold for N100

500 bags X N100 per bag = N50,000 per day

N50,000 X 28 working days = N1,400,000

One year = N1,400,000 X 12= N16,800,000
 

Need a copy of our Start up Manual? Call Segun Babs on 08107024162.

Best Regards.