30038374 water purification production managment

8/13/2019 30038374 Water Purification Production Managment

1/31


2/31

2


3/31

T!"# O$ %O&T#&TS

'( )&TRO*+%T)O& TO SM#* ,,,,,,,,--,,,,,,,,,,,.

2( P+RPOS# O$ T/# *O%+M#&T ,,,,,,,,,,,,,,,,,,-5

( %R+%)" $%TORS 1 ST#PS )& *#%)S)O& M)&3 $OR

)&4#STM#&T )& T/# PROJ#%T---,,,,,,,,,,,,,,,,,-5

.( PROJ#%T PRO$)"#-,,,,,,,,,,,,,,,,,,,,,,,--

5( STRT#3)% R#%OMM#&*T)O&S -,,,,,,,,,,,,,,,---''

( #6 S+%%#SS $%TOR-,,,,,,,,,,,,,,,,,,-,,- ''

7( S#%TOR &* )&*+STR6 &"6S)S -,,,,,,,,,,,,,--,- '.

8( M%/)R6 1 #+)PM#&T R#+)R#M#&TS --,,,,,,,--,, 20

9( /+M& R#SO+R%# R#+)R#M#&T --,,,,,,,,,,,-,,, 2'

'0( "&* 1 !+)"*)&3 R#+)R#M#&TS -,,,,,,,,,,,,,, 22

''( $)&&%)" SS+MPT)O&S ,,,,,,,,,,,,,,,,,,---- 2.

'2( #6 SS+MPT)O&S ,,,,,,,,,,,,,,,,,,,,,,-- 25

'( $)&&%)" STT#M#&TS , ,,,,,,,,,,,,,,,,,, 27

3


4/31

P+RPOS# O$ T/# R#PORT

The objective of this report is primarily to facilitate potential entrepreneurs in project identification

for investment. The project pre-feasibility may form the basis of an important investment decision

and in order to serve this objective; the report covers various aspects of project conceptdevelopment, start-up, production, marketing, finance and business management.

The report also provides sectoral information, brief on Government policies and international

scenario, hich have some bearing on the project itself.

This report is therefore regarding production of purified drinking ater on commercial basis.

!efore studying the report one must consider folloing critical aspects, hich forms the basis ofany investment decision.

%R+%)" $%TORS 1 ST#PS )& *#%)S)O& M)&3 $OR

)&4#STM#&T )& T/# PROJ#%T

!efore making any investment decision, it is advisable to evaluate the associated risk factors by

taking into consideration certain key elements. "or establishing ater purification plant criticalfactors that should be considered before launching are described belo#

The market for purified bottled $ mineral ater is a groing market, but offers tough

competition.

%erception $ positioning of the ne brand. &sually the top target market for bottled mineral

ater follos the perception. 'f the perception is positive, the results ill be higher sales.The positive perception for distributors and final customers may result from direct

consumer e(perience, aareness, direct promotional activities, print media and T)

advertising.

*istribution is very important for the success of ne brand. The stronger the distribution the

more successful ill be the ne brand. The distribution strategy should be designed after a

careful study of the market for going for regional distribution or for nation ide

distribution. %re-launch advertising is vital for positive perception of the product, hich ill result in

higher product acceptance.

+ompliance of the ater uality standards of %akistan tandards /uality +ontrol

0uthority 1%/+0 and license from the authority.

0vailability of product at 0 class, ! class or + class shops should be decided before

launching the product and availability should be persistent.


5/31

Pro:ect Timeline

.4 0ctivity Time 1months

5 +ivil 6orks 22 %lant order and 7ayout 3

3 %re-opening operations 5

The construction of civil orks has been estimated to be completed in to months and the plantorder, lay out and installation is estimated to have a time period of three months. The time reuired

for pre-operations is one month. 't also includes pre-launch advertisements on T) and in print

media. The project time line may e(tend and cut back depending upon the start of activities on

parallel basis or one after another.

PROJ#%T PRO$)"#

Purification of Water

The process of purified bottled ater manufacturing consist of collecting ater from a suitable

source, filtration, deminerali8ation, blending ith salts, aeration, testing for standardsconformation, bottling and packaging. 0 process for the production of bacteria free, clean and

palatable bottled ater as developed by %+'4 7aboratories comple( 9arachi. 't had very simple

process consisting of physical operations of settling, filtration and &ltra )iolet radiation treatment.*uring 5::>

22-23 >5,33> ?,3>

2-2? 5,==,:?5 5,@5

2=-2@ 2,32>,= 52,>?=

Opportunity Rationale

?


6/31

The market for mineral ater has been shoing a mushroom groth trend over the last fe years.The country


7/31

"or the purpose of this feasibility study, to samples of 96! ater have been taken and their

chemical composition as analy8ed. The chemical analysis of these samples is as folloing. The

cost of purification plant is dependent on the analysis of the available ater. The treatment variesfrom place to place 1increase of ground ater and from source to source.

naly>i> of WS! Water

Source );*efen>e Pha>e7( Source ));3ul>han '*(

p/ 7-50 7-2

%onducti?ity .52 u>@cm .92 u>@cm

Sulphate 58 ppm 57 ppm

!icarbonate '07 ppm ''' ppm

%hloride .8 ppm 57 ppm

Magne>ium '' ppm '2 ppm

%alcium ppm 9 ppm

Pota>>ium ppm ppm

Pota>>ium . ppm .0 ppm

Sodium 8 ppm .5 ppm

Total *i>>ol?ed Sol?ent> 270 ppm 295 ppm

Total %alifon %ount Aero @ *" Aero @ *"

$arecal %alifon %ount Aero @ *" Aero @ *"

Total !acterial %ount .-0B'0C cfu@m .-0B'0C cfu@m

Pro:ect %apacity Rationale

@


8/31

This study has been made ith the focus of 9arachi city. 9arachi has been facing the problem ofater shortage. The population has been groing at the rate of 3.> annually. The proportion of

&rban and rural population in indh is >.> and ?5.2 respectively. 't also shos that the major

proportion of the population is in the cities and 9arachi comes out to be a major target market forne product. The population of 9arachi city is :,33:,23 according to 22 population, hich is

around 3.=:A of the population of indh. The sources of drinking ater for indh region are as

folloing#

TableD *rinEing Water Source>

Source> Pipe ;&ul( /and Pump Well Other>

Sindh .'-70 -5' 8-5.'-2.

Rural '-8' 52-22 '2-78 '8-'8

+rban 7.-5 '5-88 2-98-7

*epending on the minimum feasible plant capacity and situation of supply of different brands of

purifies bottled ater and future e(pansions, a plant si8e of 5?, Gallons per day isrecommended.

Propo>ed Product MiB

This feasibility has been developed for a ater purification plant ith a capacity of 5?, gallons

per day. The product mi( consists of ater bottles of 5.? liters and .? liter in the ratio of >A and2A respectively.

TableD Recommended pro:ect Parameter>

%apacity /uman Re>ourceTechnology@

Machinery"ocation

5?, Gallons per

day2

7ocal D imported9arachi

>


9/31

Propo>ed !u>ine>> "egal Statu>

There are three main forms of business# ole %roprietorship, %artnership and +ompany. 0nenterprise can be a proprietorship or a partnership and even it can be registered under company la

ith corporate la authority. 0lthough selection totally depends upon the choices of an

entrepreneur, but this feasibility study has been based on a private limited company.

$inancial Summary

The financial cost of the project can be summarized as under:

Pro:ect %o>t )RR PaybacE Period

;yr>( &P4

'5F0F.85 79G 2-20 '72F52F900

The proce>> floH

The first step for setting up a ater purification plant is the analysis of source of ater. 0fter the

chemical analysis, the specifications of the purification plant are set. 'n the purification plant,source ater is stored in the feed ater tank, passes through the sand filter for preliminary ater

filtration. 6ater then passes through the dosing pump-' here chlorine is added to kill the germs inthe ater. 0fter the chlorination, ater passes through carbon filter. 't helps in the maintenance of

proper odour and taste of the ater. 't also removes chlorine from ater. 6ater is then passes from

*osing pump-'', here odium Beta !isulphate is added. 't helps in dechlorination of ater.6ater is filtered ne(t and passes through dosing pump-''', here anti scallant is added. 't prevents

scaling of membrane from calcium, magnesium and biological groth. 6ater then passes through

reverse osmosis module. This stage of the process makes ater clear from all the contaminations

and minute particles. 6ater then passes through dosing pump-'), here minerals are added fortaste development. 0fter this stage, ater undergoes &ltra )iolet treatment to avoid any

contamination from bacteria and other micro organisms. 6ater then passes through automaticashing, filling and capping plant. Eere ater is filled into bottles. 0fter filling bottles are takeninto the arehouse or shipped to the retailers.

:


10/31

The complete process flo diagram is as under.

Propo>ed "ocation

uper high ay is easily available and is ideal for this project as city government giving subsidies

to buy land for this purpose.

5


11/31

STRT#3)% R#%OMM#&*T)O&S

MarEet #ntry Timing

The eather is the main dynamic that may bring changes in the market si8e of the purified drinkingater as the daily ater reuirement increases in summer. 6hen launching a ne brand of purified

ater for bulk market, eather is the main dynamic, hich should be given proper consideration.

The demand pattern for retail market of purified bottled ater is not affected by the eather. The

advertisement including T) and print media is e(pected to bring changes in the demand. Eoever,it is suggested that the ne brand of purifies bottled ater is launched in the start of summer

season. The entrepreneur have to match the brand launching time ith the advertisement and

eather that ould drive the demand of bottles ater and illingness of consumers to sitchtoards ne brands. The economy is in recession so it ould matter a lot that the time hich e

are entering should be good for customers.

#6 S+%%#SS $%TOR

MarEeting

!randing and marketing of bottled ater is as essential as ater for the survival of the human body.The traditional marketing tools include site advertisement, T) and print media advertising and

brochures. This study allocates 5A of the revenue for advertising and promotional purposes. 0part

from the traditional marketing tools, this study suggests to focus more on other marketing magnetsthat include interactive marketing, interactive marketing may include educating the general publicabout the importance of ater and its daily consumption reuirements for human body through the

participation in seminars and in general public gatherings 1e.g. +ollege and &niversity gatherings.

Fne of the marketing options is to sponsor public events like cricket matches or hospitalcampaigns, distributing free brochures about ater and its daily consumption, ater reuirements

in different age brackets. The interactive marketing may be designed through seminars and

orkshops about the daily human consumption reuirements and diseases originating from the lackof pure ater. Fverall marketing strategy may change ith the change of target market. 0 market

research study is recommended to design the different dynamics of marketing before launching the

ne brand. Barketing e(pense has been included in the total project cost and it has been estimated

around 4s.? million. The entrepreneur may decide to increase or decrease the amount of marketinge(pense depending upon this choice of promotion activities and type of media used. "olloing

table gives the breakup of the marketing e(pense.

55


12/31

Pricing

The pricing strategy should be in line ith the going rate market prices of the different local brands.ince a ne brand has to face a lot of competition from the market, it is suggested that the price

ceiling should not be crossed hatever price strategy be adopted.

Product PacEaging

%roduct packaging and presentation is one of the main dynamics, hich control the flo of targetcustomers toards the product. %ackaging should be inline ith the industrial norms. %ackaging

may also vary ith the understanding of the target market. 't is suggested that the bottles of .? liter

and 5.? liter capacity should be used. !ottles should be clear. The bottle should give a reflection of

light sky blue color, hich is considered a natural symbol of the ater. This color also adds a tingeof purity. The ater should give a shiny and a glossy reflection. The opening of the bottle should be

large enough to accommodate outflo and inflo of ater. The bottles should be placed in special

racks and strand meant for bottled ater at retail outlets, hich ill be having a uniue color and auniue design. The color and the design ill create a positive perception for the ne brand. The

rapper of the bottle is suggested to be on four-color printing and should have the folloinginformation in addition to the logo of the company.

6ater pecification

+ertificate mark of the %akistan tandards /uality +ontrol 0uthority

C(piry *ate 1!est !efore *ate

0 brief intro of the company ith the address

6ebsite address of the company

!rand ame $ Trade ame

et volume in ystem 'nternational $ Betric system

!atch number or code number

?ailability

'n the first phase of the launch of the ne brand, availability ill also play the key role in attractingthe customers. 't is suggested that the entrepreneur decides the availability of the product at 0-

class, or !-class, or +-class retail outlets or mass availability of the product 1aggressive marketing.

ince, the perception of the product is also directly related ith is availability so it is suggested that

52


13/31

the strategy for the availability of the product be designed according to the target market and the

perception and positioning the entrepreneur is targeting.

S#%TOR 1 )&*+STR6 &"6S)S

There are around 2= players in the bottled ater sector. 0ccording to the industry sources, the

number of bottlers scales up ell above @ during summer season due to increased demand fordrinking ater. Eoever, the much publici8ed laboratory report published by the %akistan +ouncil

of 4esearch on 6ater 4esources 1%+464 after conducting a survey of 2= brands in the

4aalpindi and 'slamabad region declaring that, all the 2= brands available on the market arecontaminated hile 5 out of them are unsafe for drinking, forced the %akistan tandards /uality

+ontrol 0uthority 1%/+0 to make it obligatory for the companies to obtain license from the

authority before commencing operations. %akistan


14/31

0ccording to the market figures, the estle pure life brand dominates the retail market ith market

share of ?A. The parklet holds 5A of the market share and !6 brand of B$ 6ah )alley+orporation has share of ?A. The rest of the market consists of small players.

!rand> ?ailable in the MarEet

The price range for 5.? liter category is from 4s.2-:? including local and imported brands and the

price range for .? liter category is from 4s.5->? for local and imported brands.

5


15/31

"egal ReIuirement>

The %akistan /uality tandards defines bottled drinking ater as, H!ottled drinking aters are

aters other than natural mineral aters hich are filled into hermetically sealed containers of

various compositions forms and capacities that is safe and suitable for direct consumption bottleddrinking ater is considered food.I

The %akistan tandard /uality +ontrol 0uthority 1%/+0 as established under section 3 of the

0ct-5::=. The establishment of any mineral ater plant in %akistan is reuired to get a license fromthe %akistan tandards /uality +ontrol 0uthority. 0n application form, hich can be obtained for

4s.5 only from the office of the %akistan tandard /uality +ontrol 0uthority and it, is to be

submitted to the %akistan tandard /uality +ontrol 0uthority. The manufacturer is reuired to havea laboratory and a technical person, ho ill be checking the samples for constant uality. The

team from the %akistan tandard /uality +ontrol 0uthority then visits the plant and collects

samples. 0fter the conformity of the samples to the standards the %akistan tandard /uality+ontrol 0uthority issues a license. The %akistan tandard /uality +ontrol 0uthority has developed

standards for bottled and mineral ater and all the ater plants being established in the country arereuired to follo these standards. 0 manufacturer could market bottled $ mineral ater ithout

obtaining a license from the %akistan tandard /uality +ontrol 0uthority. The authority e(aminesthe availability of proper facilities including standardi8ed laboratory and purification-processing

plant for ensuring the uality of purifies drinking ater ith a team of e(perts. Banufacturing,

tocking and sale of bottled drinking ater and bottled mineral ater ithout certification markslicense is prohibited under the %akistan tandard /uality +ontrol 0uthority 0ct. )iolation of the

%akistan tandard /uality +ontrol 0uthority tandards is punishable by imprisonment for one year

or a fine of 4s.?, both.The general reuirements for establishing a bottled $ mineral ater plant as

developed by %akistan tandard /uality +ontrol 0uthority are as folloing#

Suitability

The assessment of the suitability of ater for human consumption shall be based on considerationof its physical, chemical and microbiological reuirements and limits for to(ic substances. The

ater should e free from all chemical and bacteriological contaminations hich are ha8ardous to

health.

5?


16/31

/ygiene

*rinking ater for the purpose of bottling shall be prepared in accordance ith %#3:-5::@ for

the code of practice-General principal of food Eygiene and in accordance ith the %#@5>-25

for code of practice for the collecting, processing and marketing of natural mineral aters.

PacEaging

The containers shall be hygienic suitable completely clean and shall not cause any undesirable

change in the tastes, odour or color or uality of the ater. 't shall be packed in hermetically sealedcontainers of "ood Grade material to prevent contamination of bottled ater. "illing and sealingoperations of containers shall be done in an aseptic atmosphere so as to prevent any contamination.

Tran>portation

!ottled ater shall be transported by any suitable means of transport to protect it from

contamination.

5=


17/31

MarEing

'n addition to the %#5>?-5:: for %akistan tandard for the labeling of %re-%ackaged "oods, thefolloing provisions shall apply.

a ame of the product for e(ample bottled drinking aterb !rand name or trade name

c et volumes in ystem 'nternational $ Betric ystem

d ame and address of the manufacturere !atch number or +ode number

f *ate of C(piry

g +hemical composition e.g. ulphate, Bagnesium, %otassium etc.h %akistan tandard number

Sampling

'n any consignment all the bottles of the same si8e and belonging to one batch of the

manufacturer or supply shall constitute a 7FT

Cach bottle of the sample shall be marked ith necessary details of sampling and thebottles for bacteriological testing shall be marked separately

The bottles of the sample shall be stored in such a manner that there shall be nodeterioration of uality of ater

The bottles for bacteriological testing shall be brought to the testing laboratory ithin one

hour, of sampling. 'f this is not possible the bottles shall be stored at 5 J+ or belo andtransported to the testing laboratory ith in 2 hours. 'n case of small units, the originalpacking shall be treated as sample.

Scale of Sample

ample shall be tested from each lot for ascertaining its conformity to the reuirements of this

specification. The number of bottles to be selected from a lot shall be in accordance ith thefolloing table.

5@


18/31

'f bottles are packed in cases, 5 percent of the cases subject to minimum of five cases shall beselected from the lot and as far as possible an eual number of bottles shall be selected from each

case so selected to form a sample of si8es given in the table.

&umber of Te>t

0. Cach bottle selected shall be inspected for packaging and marking reuirements.

!. The bottle shall be selected and tested individually for bacteriological limits.

+. 0 sufficiently uantity of ater shall be dran from each of the remaining bottles and mi(ed toform a composite sample thus obtained shall be tested for the reuirements for its suitability

and chemical composition

%riteria for %onformity

0 7FT shall be declared as conforming to the reuirements of this specification, if the folloing

conditions are satisfied.

Cach bottle inspected as H0I satisfies the relevant reuirements

Cach bottle hen tested as in H!I satisfies the relevant information

+omposite sample hen tested as in H+I satisfies the relevant reuirements

Government of %akistan as initiated steps to launch programs against substandard bottled ater.

The %akistan +ouncil of 4esearch on 6ater 4esources 1%+464 has launched a campaign against

substandard and unlicensed brands of mineral ater being sold in the market. The %+464 has aconducted a serried of tests of 25 brands of mineral ater last year and 55 ere found contaminatedand some of them substandard. 't is recommended to fulfill all the reuirements of the %akistan

/uality +ontrol 0uthority for getting a license for the production and marketing of bottled $

mineral ater in %akistan.

5>


19/31

M%/)R6 1 #+)PM#&T R#+)R#M#&TS

Bost of the ater purification plants being installed in the country are reverse osmosis based.Government also recommends the 4F based technology. This pre-feasibility study is based on the

reverse osmosis plant. The details of the machinery euipment are as folloing.

Table# Bachinery *etails in 4s.

5:


20/31

/+M& R#SO+R%# R#+)R#M#&T

The folloing reuirement of staff along ith their levels and monthly salary is foreseen for thisproject.

Table# Euman 4esource 4euirement

2


21/31

"&* 1 !+)"*)&3 R#+)R#M#&TS

"or the proposed set up of ater purification plant, a total of 2? suare feet is reuired. This landreuirement includes space for the installation of plant and machinery, management office and

store for bottles, finished product and parking.

Recommended Mode of "and cIui>ition

ince purified bottled ater is a kind of project, hich needs an e(tended span of time for its

perception and brand recognition, so the recommended mode for the acuisition of land oned or

leased 15 years.

25


22/31

Suitable "ocation

This project has been developed ith a focus on 9arachi city.

22


23/31

$)&&%)" SS+MPT)O&S


24/31

#6 SS+MPT)O&S

Table# %roject 0ssumption

2


25/31

2?


26/31

2=


27/31

LETTER OF ACKNOWLEDGEMENT

6e are thankful to 0lmighty 0llah hose Grace made it possible for us in the accomplishment of

this report.

6e are also thankful to our %roduction Banagement ir Bufaddal Bir8a, ho made this course an

enjoyable journey of learning and e(perience and also guided us in our project throughout.

%roviding us ith information as ell as timely guidance henever e needed it, e are all

immensely grateful. 6ithout his help, it ould have been impossible for us to ork on this project

as ell as to develop the basic understanding of the course.

0nd lastly there as a lot of collaboration and coordination in the making of this report, there as a

major loss of sleep and a lot of panic attacks hile making the report. Eoever the process proved

to be a fun and learning e(perience.

2@


28/31

2>


29/31

2:


30/31

3


31/31

30038374 water purification production managment

Documents