Frankitex

ANALYSED COST OF RUNNING A PURE WATER BUSINESS IN NIGERIA - QUOTATIONS

 “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 drinkablewater 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 tanksand pit latrines)

2)      Register your business name

3)      Sink a boreholeInstall overhead tanks (a reservoir to supply water to the           distillation system) Install distillation system

4)      Get NAFDAC registration

5)      Automatic sealing machine (get the one that can seal about 40 sachets per         minute)

6)      Nylon materials, Logo and product name printed on nylon material

7)      Labor Operator (1) for a start, Driver (1) for a start, Motor Boys (2), Packer     (2), Cleaner (1).

8)      Truck for distribution

9)      Power Generating set- 25KVARunning cost of between N 200,000 or      thereabout for six months.

RUNNINGSTART-UP COSTS

Ø Factory site (4 bedroom bungalow) must be fenced: N400,000 to N450,000

Ø Business registration with CAC: N25,000 –N30,000 annually

Ø Overhead tank: Between N25,000 and N30,000

Ø Borehole: N250,000

Ø NAFDAC Requirements

Ø Automatic sealing machine: N350,000 to N400,000 depending on the capacity.

Ø Nylon materials: (This will be contracted to a maker; the first price is usually more because of the designing and printing of logo). Printing names and logo on the nylon

Ø Labour:       Operator (1) for a start: N10,000 monthly

                   Driver (1) for a start: N2,000 per loading

                   Motor Boys (2) : N1,500 per loading

                   Packer (2): N1,500 per packing

                   Cleaner (1): N9,000 per month

Ø Truck (Tokunbo): N900,000 to N1million (This price is not fixed, you can ask a car dealerfor price list of trucks)

Ø Power Generating set: (There are several makers which determine the price, check this link for price list:

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