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Jan 20, 2018

How To Start Sachet Water Business In Nigeria

Starting a sachet water business in Nigeria is a fantastic investment you could ever think of making. However it is no child's play as it requires quite a huge sum of money to start up.

Right from the onset, it is extremely important to conduct a  feasibility study of where you want your sachet water production site to be stationed. And after you must have finished accessing your site, you should draw up a business and marketing plan which will be in line with your financial budget.  Which are as follows :



1. PRODUCTION SITE

As soon as you have the capital with you, the main thing to consider ought to be the place you need your production to occur. It could be a leased site, a purchased site or a site you constructed yourself.  If you are considering leasing a major distribution center for the sachet water business, your budget plan ought to be within the range of N250k – 1.5million yearly rental expense (depending on the state). But if you wish to construct your site yourself, bear it in mind that the total cost of construction will greatly depend on your taste and the capacity of your production. In any case, a normal pure water building should cost around 3 - 10million naira depending on the state.

Some other things that should be considered during the course of construction includes electricity bills which will range between N50k – 500k every year. Government service bills et cetera.

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2.WATER SUPPLY

Under this, you have two choices, either to drill a bore hole (which is the most ideal and reliable option) or to collaborate with a water organization. Under the water supply area, you should also consider purchasing a reservoir as reinforcement and to consider the treatment of water using any of the following water treatment system;

* distillation: 
* reverse osmosis 
* carbon filtration 
* ultra-violet light 
Reverse osmosis distillation system 

However, the reverse osmosis and the ultra-violet methods are the most widely used in Nigeria because they are easier to install and the ultra-violet light method is relatively cheap, at about a #100,000 or less.
Ultra-violet system of water purification 

3. NAFDAC REGISTRATION
Now is the time to register your business with the agency regulating the production of foods and drugs in Nigeria, NAFDAC.

Without getting their approval, it is impossible to start your sachet water business here in Nigeria.

And truth be told, it's quite a strenuous process getting NAFDAC approval because you will have to meet all of their requirements before they can approve your business and the cost of their processing fee is about #30 000 for sachet water production.
Check  NAFDAC requirements 

 4. TRANSPORTATION

Most business requires the producer to get his products closer to those who needs them (the consumers) through the retailers. The same can be said of sachet water business. As a sachet water producer, you will be needing reliable transporting vehicles that will aid in moving your sachets water to the retailers. Examples of these vehicles include trucks, van, buses with or without the seats etc.

When purchasing any of the transporting vehicles, you should go for quality ones and shouldn't try to be economical considering how bad some of our roads can be to avoid it from breaking down every now and then.

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5. AUTOMATIC SEALING MACHINE

The automatic sealing machine is one of the most important machines to have in a pure water factory hence you need to scrutinise it properly when purchasing one.

It is a machine that does different functions ranging from bag-making to printing, filling, sealing, cutting and counting.

If you are looking to start in a large scale, you will be needing about two or three. Otherwise, one is enough.

You can get this machines here in Nigeria but you should by all means look for a trusted and reliable seller to deal with as there are lots of scammers everywhere.
The price ranges between #400 000 - #800 000. Although you can get a good second-hand machine for less that price.

Alternatively, you can also visit Alibaba.com a Chinese website to purchase one at a price range of between $950 - $3000


6. EMPLOY LABOUR FORCE 

After you must have completed all of the aforementioned, you will now have to look for capable hands that would pass off as your employees. Those who would assist you to achieve the definite goal of sachet water production.

The number of employees you would have will definitely depend on the capacity of your production company.

Mind you, you won't just be needing the services of unskilled labourers alone, as there are task which are better left to the skilled or semi skilled ones. Tasks like record keeping, managerial duties, paper works etc.

Be very careful in your selections as the type of employees you choose can either make or mar your business.

7. DISTRIBUTORS

it is always advisable to get people who would help in distributing your products. These people are different from your employees.
You sell to them at reduced price and they in turn would drive down to their respective customers (retailers) and sell to them for profits.

Having distributors under you helps in improving the marketability of your products, hence improving production performance.

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IN CONCLUSION

Even though Sachet water business is now a little bit saturated in the country, it is still a very lucrative business to venture into as long as you do your homework well.

Maintain good relationship with your customers as well as those working for you. Give them incentives every now and then to encourage them to keep partnering with you.

Ensure that your water is always of high quality and tasteless and it won't be long before your business will be nationwide known and you start reaping the fruits of your labour.


Please if you find this article useful or need to ask a question, you can use the comment box to let us know.
You can also let us know if you think there is something we have omitted by leaving a comment as well.

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