HOW THIS REPORT IS PREPARED

PROCEDURE

The Procedure of our Study mainly involved around the sample survey and detailed study of

components related to the packaged drinking water supply.

The main information regarding Operations and Production Process, Plant Location and Layout,

Planning involved in Production, Knowledge about the different Departments and the

Distribution Network.

Also certain information such as About Bottling plants and the Packaged Drinking Water

industry was obtained from the website.

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‘DEMAND OF WATER WOULD NEVER GO DOWN… & WATER WOULD

NEVER BE OUT OF BUSINESS’

Packaged Drinking Water Industry

Water everywhere, not a CLEAN drop to drink! Who would have thought that there will be a

day when sanitation of available water would be more of a concern than availability of water

itself? Hygiene is of great concern to everyone today, and this is evident with the surging rise in

the consumption of packaged/bottled water. India has 16 percent of the world's population, 2.5

percent of the land mass and 4 percent of the world's water resources. These limited water

resources are depleting rapidly while the demands on them are increasing. Drinking water

supplies in many parts of India are intermittent. Transmission and distribution networks for

water are generally old and badly maintained, and as a result, are deteriorating. India is one of

the biggest and most attractive water markets in the world. The boom time for Indian bottled

water industry is to continue- more so because the economics are sound, the bottom line is

attractive and the Indian government hasn’t planned well for utilization of the nation's water

resources. Corporate control over water and water distribution in India is growing rapidly: the

packaged water business is worth $250 million. Around 1,200 bottling plants and 100 brands of

packaged water across the country are battling over the market. Most multi-national (MNC)

companies view India as the next big market with a lot of potential and growth possibility.

Several MNCs are waiting in the wings to expand a $ 287 billion global water market into India.

There is a huge market being exploited by the packaged water industry, and it's growing at 40%

per annum. With over a thousand bottled water producers, the Indian bottled water industry is

big by even international standards. There are more than 200 brands, nearly 80 per cent of

which are local. Most of the small-scale producers sell non-branded products and serve small

markets.

From being confined to the uppermost echelons of society, packaged water has now become a

commonplace commodity and almost a necessity in metros. After witnessing historic growth in

recent years, it has become a Rs 3,000-crore industry, one that is slated to only post healthy

growth rates to become a Rs 10,000-crore business in just three years, The bulk water industry,

or water in 12-, 20- and 25-litre packages, has also witnessed a parallel growth of Rs 700-1,000

crore. Basically, the market can be divided into two segments — the retail consumer market

where the pack sizes are 500 ml, one litre, 1.2/1.5/2-litre and five-liter, and the household and

institutional market, where the pack size is usually are 20- or 25-litre.

The Bureau of Indian Standards (BIS) is the governing authority on all quality and

production regulations related to natural mineral water as well as packaged drinking water.

Future Growth Prospects for the Industry:

The industry’s phenomenal growth in recent years can be attributed to rising incidence of water-

borne diseases, improper municipal supplies, and evolved health consciousness of people as well

as globalization, which has brought in tremendous tourist inflow.

The industry growth rate is 40-50 per cent a year, but India is still behind countries such as

Indonesia, Malaysia and Singapore, where the industry is already worth Rs 15,000-20,000 crore.

These countries have much smaller population but similar climatic conditions. If we consider

these data as a base for future potential, then the growth prospects of Packaged Drinking Water

in India is high. The Indian market currently has more than 2,000 players, the main brands

controlling the market are Bottling Plant International Pvt. Ltd., Himalaya Mountain Water,

Pepsi’s Aquafina, Coke’s Kinley, Kingfisher, SAB Miller’s Royal Challenge, besides local

players such as Sabol, Manikchand, Rail Neer, Attharva.

With better knowledge of packaged drinking water, brands such as Bottling Plant Mountain

Water, Evian of France, Himalayan of North India and Blue Mont from the South are trying to

create a niche in the premium water segment of “mountain spring water,” which comes under the

natural mineral water specifications of BIS.

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ABOUT BOTTLING INDUSTRY IN INDIA:

Mineral Water under the name 'Bottling Plant' was first launched in Mumbai in glass bottles in

two varieties - bubbly & still in 1965 by Bottling Plant Ltd., a company of Italian origin. This

company was started by Signor Felice Bottling Plant who first brought the idea of selling bottled

water in India.

Parle bought over Bottling Plant (India) Ltd. In 1969 & started bottling Mineral water in glass

bottles under the brand name 'Bottling Plant'. Later Parle switched over to PVC non-returnable

bottles & finally advanced to PET containers. .

Since 1995 Mr. Ramesh J. Chauhan has started expanding Bottling Plant operations substantially

and the turnover has multiplied more than 20 times over a period of 10 years and the average

growth rate has been around 40% over this period. Presently Bottling Plant has 8 plants & 11

franchisees all over India. Their presence covers the entire span of India. The company is

planning to set up four more plants. Bottling Plant commands a 65% market share of the

organized market. Overwhelming popularity of 'Bottling Plant' & the fact that it has pioneered

bottled water in India, has made it synonymous to Mineral water and has made it a household

name. When you think of bottled water, you think Bottling Plant.

Product Range

Bottled Water is packaged in:

Non-Returnable Packs--

250ml cups

250ml bottles

500ml

1L

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1.5L

2L

Returnable Packs—

5L

20L

PLANT LOCATION

Location is the most important factor to be considered while setting up any manufacturing plant.

It plays a vital role in deciding the efficiency and smooth running of the factory. On the other

hand, a bad plant location may create many obstacles in the manufacturing process. Hence any

company attaches a lot of importance to selection of an ideal plant location depending on its line

of business.

SO WHAT IS AN IDEAL PLANT LOCATION?

There are many factors to be considered while deciding the location. It varies from plant to plant

depending on the sort of unit they are manufacturing. However there are certain universal

guidelines which have to be taken into consideration. The factors which we took into

consideration are:-

1) Availability of Raw Material :-

a) The main raw material for any bottling plant is water. The location that has been

selected has continuous raw water supplied for 285 MLD Water supply

scheme of STEM Water Distribution & Infrastructure Co. Pvt. Ltd., Thane’s

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Temghar WTP on site which is enough to supply water for the whole year.

Hence the company does not rely much on Bore Well or any other source for its

water. The raw water lifted by the STEM Water distribution and Infrastructure

Company Pvt. Ltd. From a perennial source i.e. Ullhas river at Shahad located in

Kalyan city.

b) The other raw material it requires is HDPE, LLDPE for the production of caps

and PET for the production of bottles. The granules of these are easily available.

The polymer manufacturing companies i.e. CHEMCO and SNJ HYDERABAD

have distributors in Thane, Bhiwandi and the CHEMCO having their

manufacturing unit at Wada (Industrial Zone in Thane district).

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2) Nearness to the market :-MMR is one of the biggest Business and Residential Hub in Maharashtra and the market

in MMR is very large due to the fact that people in cities of MMR are more hygiene

conscious. The location of factory site is located right next to the Eastern express

highway therefore making it easier for it to transport the finished goods to the different

parts of the MMR as well as out station.

3) Availability of power :-The location selected for the bottling plant is next to the Torrent Power supply’s

substation and the existing WTP of STEM having continues Power supply for their

WTP and Pure Water Pumping Station therefore there is abundant power available.

STEM Water Distribution & Infrastructure Company Pvt. Ltd. gets its power from

Torrent Power; they have constructed a substation to meet the needs of the WTP and

Pure water pumping.

4) Transport facility :-The location of Plant is in Bhiwandi Town is well connected to major cities of MMR

with round the clock transportation and major transporters available in the vicinity of

the located plant. The services of the transporter can be taken on initially and after

establishment of the brand of STEM the same can look for purchasing their own vehicle

for transport the finished goods and semi – finished goods within the MMR as well as

out of the Maharashtra state.

5) Suitability of Climate :-The location selected is located in Gram Panchyat Pimplas which is in the temperate

zone (in MMR region or near to the Mumbai). Therefore, the temperature is moderate

and this area being near the coast gets high rainfall which is essential for the year

round supply of water.

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6) Availability of labor :-STEM Water distribution & infrastructure Company Pvt. Ltd. is located in the city of

Bhiwandi- Which is 40 km off of a metropolitan city - Mumbai. It has abundant

skilled, semi-skilled and manual or unskilled labour.

PLANT LAYOUT

The plant Layout and detailed layout is attached as Drawings.

ANALYSIS OF THE LAYOUT

The factory has wide doors leading to a raised platform. There are small cranes which

are used to pick up the lot of raw materials such as pre-forms and caps which are

brought by trucks. They are then stored in an accessible place so that they can be taken

for further processing.

The plant considered while is completely automatic for the packaging on the 250 ml

glass to 2 liter bottles, the 5 liter and 20 liter bottle filling is semi automatic.

In order to facilitate the transporting of the boxes from one plant to another there are

medium trolleys which have to be manually pushed. Therefore sloped entrance and exits

are provided.

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The warehouse where the finished goods are stored is located right next to the vehicle

pool in order to reduce the time wasted in transporting to the trucks.

INFLUENCE OF CERTAIN FACTORS ON PLANT

LAYOUT

1) TYPE OF INDUSTRY:-The unique manufacturing processes and the type of industry have a significant

influence on the layout of the plant. The different types of industries are as follows:-

1) Synthetic

2) Analytical

3) Conditioning

4) Extractive

Packaged bottled drinking water falls under the category of conditioning industry. A

Conditioning industry is an industry which is involved in the change of form or the

physical properties of a substance; in this case water.

Each of the above industries can be further classified into:-

1) Intermittent industry

2) Continuous industry

Packaged bottled drinking water falls under the category of a Continuous industry. A

Continuous industry is an industry that manufactures a product of a standard size.

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2) SIZE AND TERRAIN :-The size and the terrain of the site determine the types of buildings which in turn,

influence the layout of the plant.

The Plant is located on a large plot (partly utilized for 1 Lakh liter initially and same can

be expanded on the remaining area available. Total size of plot including road is 28m X

180 m). The Plot at present is occupied the storage Godowns, which is to be demolished

and the same is utilized for the Bottling plant unit. The present Godown is to be shifted

on the plot made available after demolishing of existing CCT, Sump and Pumphouse.

3) MACHINERY :-

The size and type of the machinery to be installed also influences the plant layout. The

fixed and stationary parts of the machines should also be taken into consideration while

designing the plant layout.

In Bottling plant, the following factors were taken into consideration while installing the

machinery:-

1) There is enough space for the repair and maintenance of the machinery.

2) The machines are placed in such a way that there is enough place for moving and

relocation of the machines.

3) There is enough maneuverability for the workers to move about the machines and

work comfortably.

4) Workers :-The layout of the plant should be such that it fulfills the requirements of the workers.

Also the fact whether the employees have a job which requires them to sit in one place or

move about should be taken into consideration.

In the Bottling plant factory, the workers have the following facilities:-

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1) The plant is on the Eastern Express Highway and is also very close to the 500 m off of

Sai Baba Mandir bus stop of MSRTC and Other Corporations Buses. Also the Share

Auto-Rickshaw is available from Kalyan Station. This makes it very convenient for the

workers to commune.

2) The Washrooms for men and women workers are also conveniently located are kept

in hygienic conditions

PRINCIPLES OF PLANT LAYOUT

We have seen that certain factors influence the layout of the plant. Along with these factors,

there are certain Principles which act as guidelines for the layout engineer while designing the

plant layout. They are as follows:-

1) The principle of minimum travel

2) The principle of sequence

3) The principle of usage.

4) The principle of compactness

5) The principle of safety and satisfaction

6) The principle of flexibility

7) The principle of minimum investment

Out of these the Bottling Plant follows 4 Principles:-

The Principle Of Minimum Travel :-

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This Principle states that there should be minimum distance for labor and materials to

travel between operations so as to minimize the cost of Materials Handling.

The Plant has installed its Machines in such a way that right from the stage of raw

materials to the final finished product there is very little distance for a unit to travel. This

saves time and cost for plant.

The Principle Of Sequence :-

Machinery and operations should be arranged in a sequential order. This principle is best

achieved in product layout, and efforts should be made to have it adopted in the process

layout.

In the plant right from producing the caps and bottles pre-forms to treating the water to

making the bottles and filling and capping it, all the machines are arranged in a sequence

therefore saving time and cost on material handling equipment.

The Principle of Usage:-

Machinery and operations arranged so that sequential order along-with the Usage of

available plot area considering better utilization with future expansion to enhance the

capacity up-to 20 Lakh bottles per day in single shift.

The principle of safety and satisfaction :-Machinery and operations arranged so the safety, hygiene and the feel of satisfaction to

the plant operator and labour shall be there. The consideration for the layout including

free and convenient movement of operator’s and staff of the plant. Consideration of

hygiene for high quality standards mentioned industry.

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PLANNING INVOLVED IN PRODUCTION

PROCESS

1) Material :-

There is no output possible without the basic Raw Materials. Materials can account for

almost 80% of the output. Hence Materials are very important in planning for any production.

The Materials which are required by Plant are:-

Untreated Water

HDPE

LLDPE

PET

Recycled PET Granules

Cartons

Stickers

2) Procedure :-

This step involves designing the most compatible process of production with a given set of

circumstances and facilities. This starts right from the designing of the plant to the actual

production.

The method for producing packaged drinking water starts with the production of bottles and

caps. After that the semi finished products are transported from the cap and pre-forms

division to the filling division, where the caps are added to the filling machines and the pre-

forms to the corresponding size of the bottle. These bottles are then added to the conveyor

belt to complete the process of filling the bottle automatically. After the bottle is filled to the

desired level, the bottle is automatically capped and then stickers are put on the bottle. The

price is printed through a spray gun. Then it is visually inspected and after that put into

cartons ready for delivery.

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3) Machines and Equipment:-

The Machinery that is used for production has to be carefully selected as it can result in

higher and more efficient output at a lower cost. The following are the methods of

acquiring the machinery:-

1) Equipments can be purchased fresh or second hand

2) Equipment can be leased or rented

3) Equipment can be fabricated within the plant

Machines used in Bottling Plant are as follows:-

Injection moulding machines for the production of pre-forms and caps.

Moulding machines for making the bottles according to the required size and shape.

Automatic fillers for the purpose cleaning and efficient filling of the bottles with

least amount of rejection.

4) Routing :-The determination of where each operation on a component part, subassembly or

assembly is to be performed results in a route for the movement of a manufacturing lot

through the factory. A generalized routing can be determined depending upon the size of

the building and is established by departments such as machine shop, assembly, finishing,

inspection and so on. A detailed routing indicates the specific work station or machine to

be used for each operation.

The route of the production process is designed in such a way that in process,

transportation is at a minimum. The plant layout is in such a way that it is easy to

transport the semi-finished product. First comes the semi finished product then it is

blown, filled and sealed, finally ready for delivery.

5) Estimating:-

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Estimating is a special type of Forecasting. Predicting what a unit of a product will cost is

very difficult to do. Hence, many companies have Pre-planning departments to estimate

the cost of the products and the demand as well.

Bottling Plant being a 30-40 year old business and is able to estimate the demand because

of past experience. They take the help of Market Surveys and past trends to determine the

production requirements.

6) Loading and Scheduling: -

Bottling Plant uses both scheduling and loading help in production planning. Scheduling

refers to the preparation of a time table for various operations covering the beginning and

finishing times of various operations. Loading refers to the time gap for various work

loads booked in advance for different products. Thus, scheduling guarantees the

observation of delivery times and loading guarantees the maximum utilization of the

available facilities.

According to the schedule of the delivery, amount to be delivered and the place they are

to be delivered, the trucks are loaded to be sent to wholesalers and retailers.

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INPUTS CONVERSION SUBSYSTEM

OUTPUT

Environment

Legal FDA, BIS, MPCB Technological

automatic inj. Mldg. m/c, auto blow mldg. m/c.

Market

Competition with Bisleri, Aquafina, Kinley etc.Customer Desire50 m.l., 100 m.l., 25 litres and low price

Primary Resources

Material: -

Water from bore wells HDPE, LLDPE, PET.

Personnel: -

Plastics Engineering, Production Managers.

Capital Assets: -

Auto Filling Machine, Blow moulding machine, recycling machine

Physical

Manufacturing

Locational Services

Transportation

Exchange

ServicesWholesalerRefill

Other Private Services

Utility

STEM Bottles

Control Sub-system

Sealed bottle, FDA, Quality Control

BOTTLING PLANT’S PRODUCTION

SYSTEM MODEL

INPUTS

Environment

1) Legal : -Bottling Plant being a company involved in selling water which is fit for consumption,

comes under the FDA. It also follows the standards of BIS. Therefore it maintains its

quality and public perceive the image of being 100% safe.

2) Technological : -Bottling Plant believes in keeping up with times and they are trying constantly to increase

their market share. This is the reason Bottling Plant has automatic Injection Moulding

Machine in order to increase their production capacity 3 folds. Bottling Plant considered

using has 1 automatic Blow Moulding Machines.

Market

1) Competition : - Bottling Plant is now mostly established players like Bisleri, parle agro also recently

launched companies like Pepsi and Coco cola have entered the market to give tough

competition to Bottling Plant by introducing brands like kinley and Aquafina. Also the

low cost local brands available whose market share or markets where limited.

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2) Customer desire:-

The customer’s nowadays getting more hygienic prone and health conscious. The packaged

drinking water market is increasing at rapid rate considering the Tour and Travel industry

growth.

3) More options: -

Bottling industry serves the packaged drinking water ranging from 300ml to 20 litres.

Primary resources: -

1) Material: - The raw water is obtained from bore wells. The bottles are made from polymers such as

HDPE, LLDPE and PET.

2) Personnel: - Bottling Plant requires mostly skilled and semi skilled labourers. The skilled labourers

include production and plastic engineers.

3) Capital assets: -

Bottling Plant required, water treatment plant (as per water to BIS 14543:2004) injection

moulding machines, automatic blow moulding machines and semi automatic blow

moulding machines ( 5 liter to 20 liter).

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Conversion Subsystem

1) Physical: -

Bottling Plant is considered to be a manufacturing unit as it manufactures the semi finished

product i.e. bottles and caps and also produces the finished products.

2) Exchange services: -

The distribution network of Bottling Plant is maintained by its distributors and

wholesalers. There is requirement of the setup of Kiosk at respective holding Municipal

Corporations. The Kiosk serving population mostly small or consumers and households as

according to the concept of Delhi Jal Board’s Jal Suvidha Khendras. To supply to big

corporates they have their own distribution network.

3) Outputs: -

The final output of whole manufacturing process is we get clean pure drinking water in

bottles of different sizes according to the needs of the consumers. The consumers can serve

from 300 ml Glass jar upto 20 Liter bottle Jar.

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Quality Control and Quality Standards

Water Bottling Plant follows and conforms to the standards set by the Bureau of Indian

Standards (BIS). Tests prescribed by the BIS are conducted daily and weekly on the Bottling

Plant premises while quarterly, half-yearly and even yearly tests are conducted in a separate

laboratory.

REQUIREMENTS TO BE COMPLIED WITH BY THE APPLICANT OF PACKAGED

DRINKING WATER FOR GRANT OF BIS LICENCE ACCORDING TO IS 14543:2004

A. GENERAL REQUIREMENTS

General requirements for grant of BIS License

B. PRODUCT SPECIFIC REQUIREMENTS

(FOR PACKAGED DRINKING WATER)

1. List of Test Equipments, Glass wares & Chemicals

2. List of BIS approved outside lab for the Product Water, Containers (including lids/caps)

3. Details of samples of the product/containers to be drawn during BIS visits.

4. Acceptance of Marking Fee

5. Acceptance of Scheme of Testing and Inspection (STI)

6. Guidelines for assessment of Hygienic conditions with Explanatory notes for guidance

7. List of Indian Standards which a Packaged Drinking Water Industry must have in original

8. Undertaking for getting the samples tested as per STI frequency from BIS approved/NABL

accredited outside lab.

9. Consent letter from concerned outside lab for testing of sample (Ref. Sr. No. 8).

10. Copy of the appointment letter, qualification certificates for Chemist and Microbiologist

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11. No Objection Certificate (NOC) from the concerned office of Central Ground Water

Authority (if applicable in the state).

12.  Detailed Manufacturing process indicating treatment for disinfection along with Process

Flow Chart. Clause 3.2 of IS 14543:2004 specifies various processes for

manufacturing Packaged Drinking Water for guidance only

13.  Copies of Medical Examination Reports of the employees engaged in washing/filling of

the product for any communicable/skin diseases and fitness to work in a food

industry.

14.  Details about the arrangements of pest control treatment such as an agreement/contract

with the agency. Also details of Cleaning in Place (CIP)

15.  Declaration of Shelf-life of the product separately for each type of container (e.g. 1littre,

2 litre, 20 litre etc.).

16. Undertaking Regarding clause 6 (Packing) of IS 14543:2004 and clause 7.2 of IS

14543:2004 (Labelling Prohibitions)

17.  Obtain request letter from BIS for getting the sample tested for Radio Active Residues,

from BARC before submitting the application and test report received from BARC is

to be submitted along with the application form.

Quality Control Measures at the Inventory level

When the raw material like performs are ordered and are subsequently delivered to the plant, a

Quality check is done physically, using a sampling formula, to ensure the quality of the goods

delivered. If they conform to the Quality Standards prescribed, then the manufacturing

department gives the ‘go ahead’ and the raw material consignment is accepted, otherwise it is

rejected and is returned back to the supplier.

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Other Quality Control Measures

Leakages in the System: Water Bottling Plant has standards for leakages in the system, i.e. it

has consideration levels for rejection of damaged items during the production and manufacturing

process. For instance a count is kept for the number of caps, preforms and bottles rejected in the

process. If this count goes above a particular level, then the machinery is considered faulty and is

immediately serviced / repaired. Approximately 0.8% to 0.9% leakages in the system are

tolerated. On the day the cost of rejections calculated in monetary terms for the 8 hour shift.

Standards for reuse/recycling of bottles: The 20 litre bottles are cleansed and then reused.

Bottling Plant has certain standards for the reuse of these bottles. For instance the bottles are first

externally cleansed. Then ‘jet pressure’ of above 1 kg is used to wash the bottles internally, first

with added disinfectant of the desired ppm level and then the bottles are rinsed with plain water.

However if the bottles do not match the parameters for reuse, then they are rejected and crushed.

A record is kept of these bottles.

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RAW MATERIAL ARRIVES

SAMPLING FORMULA USED

QUALITY CHECK DONE

MANUFACTURING DEPT. DECIDES

CONSIGNMENT ACCEPTED/REJECTED

Other Methods:

The packed cartons are not placed directly on the floor of the plant, lest they get damaged

and consequently degrade the quality of the product. Also trolleys and carts are used to

transfer the cartons within the plant.

Workers in the plant are required to wear head masks to avoid contamination of the

product.

Daily pest control is undertaken to maintain a clean environment for manufacturing.

There are at least two people appointed to remove defective or damaged pieces from the

assembly line

Water wasted during the bottling process is recycled and put to use.

Bottling Plant maintains a regular sanitation and maintenance record.

Minimal human intervention is involved during the production process. If a bottle is

unnecessarily touched by human hand, the product is discarded to maintain adequate

quality.

The mineral water is ozone treated before packaging.

An expiry date is decided for the product so that the desired quality can be maintained.

Overall productivity for a day is maintained at 80% to 85%. (For the day prior to the plant

visit it was 82% productivity)

Water Bottling Plant has to follow some Quality Policy, which can be as follows:

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Quality policy

Bottling Plant commits itself to produce and market a world class product to satisfy the present

and future needs.

We will strive to train all our people and develop an obsession for quality in all aspects of work

in an organization.

We are committed to implement good manufacturing practices and to achieve continuous

improvement in the plant, process and distribution chain.

We ensure full compliance to all government regulatory norms and strictly adhere to the internal

standards of quality and hygiene.

Each and everyone in the organization is responsible for quality. The head is accountable for

implementation of the quality policy and guidance.

The quality policy is implemented uniformly across all manufacturing units. The “corporate

quality Assurance” will provide necessary support and guidance for up gradation of the

procedures and standards.

Production System

Mass production: -

Mass Production is the name given to the method of producing goods in large quantities at

low cost per unit. Mass production, although allowing lower prices, does not have to mean low-

quality production. Instead, mass-produced goods are standardized by means of precision-

manufactured, interchangeable parts. The mass production process is characterized by

mechanization to achieve high volume, elaborate organization of materials flow through various

stages of manufacturing, careful supervision of quality standards, and minute division of labour.

Mass production requires mass consumption. Until recently, the only large-scale demand for

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standardized, uniform products came from military organizations. The major experiments that

eventually led to mass production were first performed under the aegis of the military.

Effects on the organization of work: -

The development of mass production transformed the organization of work in three important

ways:

1. Tasks were minutely subdivided and performed by unskilled workers, or at least

semiskilled workers, since much of the skill was built into the machine.

2. Manufacturing concerns grew to such size that a large hierarchy of supervisors and

managers became necessary.

3. The increasing complexity of operations required employment of a large management

staff of accountants, engineers, chemists, and, later, social psychologists, in addition to a

large distribution and sales force.

Production Process

1. Blowing :

In the blowing department the performs, obtained from the preforms department are

blown to form bottles. It is proposed to have fully automatic blowing machines which

are directly connected to the filler.

Preforms are available in various sizes according to the size of bottle.

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Bottle Sizes Pre-form Sizes (Best option)

1 ltr 21gms

500 ml 17gms

250 ml 15gms

1.5 ltr 32 gms

2 ltr 34 gms

5 ltr 75 gms

20 ltr 710 gms

2. Filling :

The filling department is situated in a closed and a controlled environment to maintain

the hygiene. Bottles are fed by an air conveyor from the blowing unit directly into the in-

feed of the RFC. RFC equipment is neck run and it boasts of a mono block unit, which

means that every bottle is held by the neck automatically while being inverted, rinsed and

sprayed with ozonated water at 2 Bar pressure. After draining, the bottles are re-inverted

and transferred to the filler. At the filler these bottles are straightened up and gradually

lifted to the filling valves which open only when a bottle is placed under them. Filling is

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then done systematically through gravity. The bottles are directly loaded onto the

conveyor belt, first the bottles are passed through UV light to kill the bacteria, then the

bottles are cleaned by pure water, then the bottles are filled to the desired quantity.

The water dispenser fills the bottle till the desired level of water is filled which is checked

by a sensor.

3. Capping :

The bottles are passed to the capper from the filler through the conveyer belt. The caps

are produced in the cap department. HDPE and LLDPE which are in the form of granules

are emptied into the hopper of the injection moulding machine with a colorant and the

caps are produced of the characteristic green colour of Bottling Plant. The caps that are

produced are automatically packed into cartons. This semi finished product is

transported, after quality testing has been done, to the filling department. The bottles are

passed to the capper from the filler through the conveyer belt. Here ozonated-water

rinsed caps are screwed on the bottle with uniform torque. Since the water is ozonated

all product contact parts are of 316L grade stainless steel and the rubber parts are of

EPDM.

4. Labelling:

From the capping section the bottles are directly sent to the labeling section. All Bottling

Plant bottles are labeled on a hot melt reel feed BOPP labeling machine. This machine

allows each individual bottles to be spaced out and fed to the labeling station where

precisely cut labels with a strip of hot melt glue at the leading and trailing edge, get

rolled around the bottle. These labels are fed into the machine in a roll form too.

5. Coding :

The labeled bottles are then passed to the coder. The sensor first senses the bottle and

then the price, manufacturing date, batch number are printed by spraying machine

on the bottle itself, then the bottles pass through a screen of white light where workers

28 | P a g e

manually check all the bottles for any defects. The code exactly contains Date, Time and

Quality Checkers initials.

6. Packaging :

Lastly they are packed in cartons and stored in the warehouse ready for transportation to

its destination.

All the waste bottles are separated send to the recycling department for recycling where

they are cleaned, grinded to a coarse powder which is again used in the manufacturing

process, thus reducing wastages and being environmentally friendly.

29 | P a g e

TechnologyWater testingThere are 8 Physiochemistry tests shall be performed on the water:

1) pH: This test is performed to check the hydrogen ion concentration in water. It should be

neutral. The pH limit which is accepted is 6.8 to 7.2

2) TDS (Total dissolved salts)

3) Turbidity

4) AOT ( Adherence, odour and taste)

5) Visual appearance

6) Packaging

7) Level alignment

8) Torque test ( for capping pressure)

There is a bursting strength unit. It is to check the carton acceptance capacity. Carton

is placed and the machine is started. The capacity is checked on the meter. 6-8 is the

normal bearing capacity.

Sample size for water treatment depends on the PH level.

There is thickness meter to check the bottle thickness.

Spectrophometer – to check the standards for mineral levels in the water.

Nitrate – NO3 – 45mg/l

Nitrite – NO2 – 0.02mg/l

Zinc – Zn – 5mg/l

Manganese – Mn – 0.1mg/l

Calcium – Ca – 75mgl

Magnesium – Mg – 30mg/l

Sulphide – S - 0.05mg/l

All the different machines to the check whether bottles are blown properly or not are

“BOTTLING PLANT GENERAL LAYOUT”

30 | P a g e

Water Treatment Process Diagram General

31 | P a g e

WATER TREATMENT

Every drop of Bottling Plant water is purified as per international standards to ensure that

Bottling Plant experience always remains pure and satisfying for longer. The following is a brief

understanding of the water treatment process (the detailed process can be determined as per

detailed water quality assessment of the raw water):

The Raw water is to taken from the raw water rising main near Gate Number 3 and near the

proposed Backwash collection and recirculation system.

Chlorination kills micro organisms and removes organic matter.

After that the water goes through the Sand Filter where the solid wastes are removed. The

Carbon Filter removes residual chlorine & odours. The Ultraviolet chamber helps to cure the

bacteria and viruses present in water.

Reverse osmosis is similar to the membrane filtration treatment process RO (Reverse Osmosis),

however involves a diffusive mechanism so that separation efficiency is dependent on influent

solute concentration, pressure and water flux rate. It works by using pressure to force a solution

through a membrane, retaining the solute on one side and allowing the pure solvent to pass to the

other side. This is the reverse of the normal osmosis process, which is the natural movement of

solvent from an area of low solute concentration, through a membrane, to an area of high solute

concentration when no external pressure is applied. Reverse osmosis removes organic material.

Controls total dissolved solids in the water.

The water is then passed through a Silverization Chamber to give sparkle to the water.

Ozonization is a process where in Ozone gas is passed through water. It ensures water remains

bacteria free for longer life.

MRP32 | P a g e

Objectives of MRP for Bottling Plant are:

To improve customer service by meeting the delivery schedules promised and

shortening delivery lead times.

To reduce inventory costs by reducing inventory levels

To improve plant operating efficiency by better use of resources.

In order to meet its MRP objectives, the management of Bottling Plant has scheduling plans at

yearly, quarterly, monthly and weekly levels. Depending upon the season or the requirement

there is change in materials ordered. For Example, in the months of March, April, May, i.e., the

summer season and October which is the vacation month there is a greater demand of mineral

water bottles. In other words the availability of dependant materials is managed in order to

achieve maximum efficiency

MRP System Structure

SWOT ANALYSIS

33 | P a g e

AGGREGATE PRODUCTION PLAN

FIRM ORDERS

MRP INVENTORY TRANSCATION

BILL OF MATERIAL

INVENTORY STATUS

FORECAST DEMAND

STRENGTHS:

1. First Mover Advantage: The STEM water Bottling Plant the first company in India to

enter the packaged water segment near Eastern Expressway Highway and proximity to 6

Municipal corporations. Due to this it enjoys a distinct identity. The company looking to

established initially 1 Lakh liter plant which can be expandable up to 20 Lakh liters a

day.

2. Market Share: The area around have large potential for water bottling plant, considering

the development of the coming up large scale.

3. Centralized location: Bottling Plant’s plant is centrally located to 5 municipal

corporations in MMR Region & close to the railway station. This makes supply of

products easy. Commuting for employees is also easy.

4. High Automation: the process considered useing by Bottling Plant to purify the water is

highly automated. This results in higher levels of hygiene.

5. Raw and Pure Water on premises: The plant has avaibalility of the raw water and pure

water in premises on nominal cost providing a definitive reduction in costs.

6. Innovative Brand Positioning methods: Most of Bottling Plant at regular intervals

modifies its bottle shape & label graphics to counter imitation of the same. The shift in

label pattern & bottle from etc.,

WEAKNESS:

1. Expansion: Bottling Plant at this particular plants expansion depends upon the future

demand and market share which going to be established by STEM brand.

2. Wastage of water: the automated process water wastage is nearly 30-40% gets wasted

which is can be drained to the backwash water recirculation sump then treated.

3. Unorganized Plant Layout: The plant shall be arranged to limit the wastage of the area

available taking into consideration of the future demand and the expansion.

34 | P a g e

4. Non Homogeneity: The packaged water industry in India is unorganized & non

homogenous. According to surveys conducted the quality of water across the country for

the same brand differs.

5. International standards: The level of hygiene at proposed plant shall follow anticipated

international standards.

OPPORTUNITIES:

1. Soda water: Bottling Plant can be utilized into soda segment. It can concentrate on

expanding in the soda segment for other manufacturer. As a long term plan it can also

enter the aerated drinks segment.

2. Higher Home Consumption: due to higher standard of living & higher health

consciousness in India currently, Bottling Plant can try to increase home consumption.

THREATS:

1. Marketing Risk: STEM Water distribution and Infrastructure Company Pvt. Ltd., not

having marketing experience in any field, while the business of packaged drinking water

requires the large scale marketing to promote the product in market.

2. Operation & Maintenance:

3. High level of substitution: Packaged drinking water can easily be substituted by that of

other brands.

4. Threat from smaller players: Smaller players have good sales in non metro & non

cosmopolitan cities.

5. Threat from imitators/fakes: smaller players which imitate Bottling Plant labeling and

packaging are a huge threat especially in non metros.

Recommendations35 | P a g e

Looking at the investment and the marketing risk involved in this venture, the most

preferable to opt for Private partnership or can be worked on PPP basis, where the risk of the

market and operation of plant will lay to the private partner.

Understanding certain technical aspects (filling, reverse osmosis, sand and carbon filtration)

relating to the production process for the present plant operating staff to know and

understand the working of such system.

The STEM with Private Partner will get the experience and its staff gets trained for the

working of plant and its operation and maintenance of such plant.

Conclusion36 | P a g e

The report on water Bottling Plant has helped us in understanding various concepts and

applications related to Operations Management and its relevance to the organization. It also

gave us a deep insight into the fact that all these aspects are crucial to the organization.

The packaged drinking water bottle plant looks lucrative on the basis of the profit

involves, as along with profit there is huge risk of market and distribution of product in the

market is involved. The distribution involved the making of distributors and vendors for timely

supply of product to consumers as well as on time requirement of raw material.

The marketing risk with the project is high as the system is linked to particular consumer

as compared to the STEM’s core business of Bulk water supply on large scale where market is

predefined and not much marketing required. While in packaged drinking water the market limits

are not defined and there are major players are there and there is going be stiff competition from

the cheap and local brands.

ANNEXURES

ANNEXURE-I

37 | P a g e

PROCEDURE FOR GRANT OF BIS LICENCE FOR DOMESTIC MANUFACTURERS

The applicant has the option to choose any of the following two procedures for grant of BIS

licence:

 i) Normal Procedure – In the normal procedure, the applicant is required to submit the filled in

application along with required documents and requisite fee to the nearest BIS branch office.

Subsequently, after recording of the application, a preliminary factory evaluation is carried out

by BIS officer to ascertain the capability of the applicant/manufacturer to produce goods

according to the relevant Indian Standard and to verify the availability of complete testing

facility and competent technical personnel. Samples are tested in the factory and also drawn for

independent testing. Grant of licence is considered by BIS provided the samples pass during

independent testing, preliminary evaluation is satisfactory and the applicant agrees to operate the

defined Scheme of Testing & Inspection and pay the prescribed marking fee. 

ii) Simplified Procedure – In the simplified procedure, applicant is required to furnish the test

report(s) of the sample(s) got tested by him in the BIS approved laboratories, along with the

application. If the test report(s) and other documents are found satisfactory, a verification visit is

carried out by BIS. The licence is granted thereafter if the verification report is found

satisfactory. The applicant also has the option to get the documents and other details as specified

in the application, certified by a Chartered Engineer and submit the same to BIS. The licence

then shall be granted after scrutiny of the documents and report submitted by Chartered

Engineer. By this procedure the licence is expected to be granted within 30 days of receipt of

application by BIS, provided all required documents are furnished and found satisfactory. 

Note 1: Simplified procedure is available for all products except certain items under mandatory

certification like gas cylinders, valves, regulators, cement, etc.

 Note 2: If any licence granted as per simplified procedure is cancelled in the event of failure of

verification samples, the fresh application shall only be considered as per normal procedure.

 Note 3: All India first licence for any product shall be granted as per normal procedure only.

NORMAL PROCEDURE FOR GRANT OF LICENCE FOR DOMESTIC MANUFACTURERS

38 | P a g e

( updated on 21 05 2007)

 

1. APPLICATION

The procedure for grant of BIS Certification Marks Licence begins with the filing of application in

the prescribed Application form (FORM I) by the manufacturer desirous of obtaining the licence. A

licence is granted for varieties of products covered under a given Indian Standard. The form along

with application fee of Rs 1000 is required to be submitted to the Branch Office under whose

jurisdiction the manufacturing unit is located.

  The following additional documents are required to be submitted with the application:

  a) Location map of factory and factory layout

  b) Documentation authenticating the premises of manufacture

  c) Lists of Manufacturing machinery and testing equipments available

 d) Scheme of testing and inspection in use, or any proposed to be used, together with an

undertaking to follow the Scheme approved by BIS after grant of licence

  e) An undertaking to pay the prescribed marking fee from the date of grant of licence

 f) An undertaking to follow all terms and condition of grant of licence and to suspend marking

with immediate effect in the event of suspension or cancellation of licence

  g) A flow chart describing the process of production and inspection stages

  h) Details of technical personnel available

  i) Any statutory licence required for manufacturing, if applicable

39 | P a g e

2. RECORDING

2.1 On scrutiny, if the application is found complete in all respects, it is recorded and assigned an

application number. The application is acknowledged and the number is conveyed to the

applicant for future reference.

3. PRELIMINARY INSPECTION

3.1 Preliminary inspection of the unit is carried out on a mutually agreed date, within a month of

recording of application. During this inspection the firm's manufacturing capability and

controls, quality control techniques, facilities available and the technical skills of the personnel

are evaluated. Samples of products are tested and also drawn for testing in BIS or other

recognized laboratories.

3.2 Preliminary visits are charged to the applicant at the rate of Rs 4000 per day for first visit and

Rs. 3000 for subsequent visits. Testing charges for the sample drawn for independent testing are

required to be paid by the applicant.

3.3 During the preliminary inspection, the Scheme of Testing and Inspection is discussed with the

applicant's management.

 

4. GRANT OF LICENCE - Licence to use the Standard Mark on a product is accorded only

after BIS has ensured the capability of the manufacturer to manufacture the product continuously

in accordance with the relevant Indian Standard. This is ensured through preliminary factory

evaluation to ascertain the capability of the manufacturer to produce goods according to the

relevant Indian Standard especially with respect to raw materials, process of manufacture,

manufacturing capability and quality control facilities including testing equipment and supervi-

sory staff. Samples are tested in the factory, in order to bring out any deficiencies in test

equipment/testing procedures and testing personnel as well as for spot establishment of quality of

product. Simultaneously, samples are also drawn for testing in the independent laboratories for

assessing conformity to the relevant standard. The manufacturer is required to agree to operate a

40 | P a g e

well defined Scheme of Testing and Inspection (STI) as approved by BIS from time to time,

which inter alia prescribes the specific tests and the frequency for conducting them. In order to

meet the expenditure incurred by BIS in operating the licence, the manufacturer also has to agree

to pay a marking fee fixed by BIS for the product. Licence is granted only after the manufacturer

agrees to these conditions and if the factory inspection and test reports are satisfactory.

 

5. VALIDITY

 The initial validity period of the licence is one year. Licence can be renewed for further period

of one/two years, subject to satisfactory operation of licence as observed during periodic

inspections, factory & independent testing of samples drawn from factory and market. The

licensee shall apply to BIS on the prescribed Renewal Form along with renewal application fee

of Rs. 500/-, annual licence fee of Rs. 1000/- and marking fee, as applicable.

 

6. FEE

 a)      Application fee of Rs. 1000/-(to be submitted with the filled-up application).

b)      Charges for Preliminary Inspection visit @ Rs. 4000/- per man day for first day and

Rs.3000/- for subsequent days (to be submitted with the application).

c)      Advance annual minimum marking fee (as prescribed by BIS) (different for different

products) (details available on BIS website) (To be deposited at the time of grant of licence and

submission of renewal application) (Annual licence fee of Rs.1000/- is also to be paid at the time

of grant of licence)

d)      Renewal application Fee (Rs. 500/-) and Annual licence fee (Rs. 1000/-) (to be submitted

at the time of renewal along with duly filled-in prescribed Renewal Form)

e)      The testing charges of the sample(s) drawn during Preliminary Inspection visit shall be

paid by the applicant.

41 | P a g e

f)      Special visit(s), if required e.g. for inclusion of varieties, resumption of marking,

verification of corrective actions, etc. @ Rs. 3000 per man day (after grant of licence).

g)      Concession in minimum marking fee for second or subsequent licences would be

applicable as under:

 

7 Minimum Marking Fee (Rs.) Concession (Rs.)

Up to 20000 ---

20001 – 23000 Minimum Marking Fee minus 20000

23001 – 35000 3000

35000 – 50000 4000

50001 – 65000 5000

65000 – 80000 6000

Above 80000 8000

Licence with highest minimum marking fee shall be treated as the first licence, for the purpose of

concession in Minimum Marking Fee.

 8. Applicable Govt. taxes.

 For further information please contact: Branch office under whose jurisdiction the manufacturer

is located.

SIMPLIFIED PROCEDURE FOR GRANT OF LICENCE FOR DOMESTIC

MANUFACTURERS

(Updated on 21 05 2007)

42 | P a g e

The simplified procedure has been introduced with a view to reduce the time taken for grant of

licence after submission of application. In this procedure, applicant is required to furnish the test

report(s) of the sample(s) got tested by them in the BIS approved laboratories, along with the

application. If the test report(s) and other documents are found satisfactory, a verification visit is

carried out by BIS. The licence is granted thereafter, if the verification report is found

satisfactory. The applicant also has the option to get the documents and other details as specified

in the application, certified by a Chartered Engineer of relevant discipline and submit the same to

BIS. The licence then shall be granted after scrutiny of the documents and report submitted by

Chartered Engineer. By this procedure the licence is expected to be granted within 30 days of

receipt of application by BIS, provided all required documents are furnished and found

satisfactory. Eligibility Criteria for Chartered Engineer has been laid down by Institution of

Engineers at their site (www.ieindia.org) as "Any life Corporate Member of the Institution of

Engineers (India) can designate himself as a Chartered Engineer (C Eng)".Reports from such

Chartered Engineers may be accepted for processing applications. Similarly, reports from

Engineer Members of other Institutions like Indian Institute of Chemical Engineers

(www.iiche.org), The Institute of Electronics and Telecommunication Engineers (www.iete.org),

Institute of Electrical and Electronic Engineers (www.ieee.org), Indian Institute of Metals

(www.iim-india.com) and other similar institutions may also be accepted.

1 Application

 

1.1 If application is submitted without verification by Chartered Engineer

 Applicant has to submit application in the prescribed Application Form and a Self Evaluation-

cum-Verification Report along with prescribed documents and a copy of test report not older than

one month covering all requirements according to the relevant ISS from a BIS recognized testing

laboratory together with the specified application fee of Rs. 1000/- and verification fee of

Rs.4000/-plus applicable taxes for grant of licence under Product Certification Scheme of BIS.

 

43 | P a g e

1.2 If application is submitted after verification by Chartered Engineer (Not applicable in

case of All India First licence for any product)

 Applicant has to submit application in the prescribed Application Form and a Self Evaluation-

cum-Verification Report duly certified by Chartered Engineer of relevant discipline (Section C of

Self evaluation cum Verification report) along with prescribed documents and a copy of test

report not older than one month covering all requirements according to the relevant ISS from a

BIS recognized testing laboratory together with the specified application fee of Rs. 1000/-. If

Verification report by Chartered Engineer is not satisfactory and a visit by BIS officer becomes

necessary, special inspection charges of Rs 4000/- shall be payable to BIS. It may also be

desirable for the applicant to contact the concerned branch office of BIS to find out the

samples/raw materials, etc. required to be tested for covering a specified range/type, etc. of the

product in the licence.

The application form along with prescribed documents and requisite fee is required to be

submitted to the Branch Office under whose jurisdiction the manufacturing unit is located. Click

here for locating relevant branch office. One application should be submitted for one product and

for one manufacturing location.

 The application form, documents to be attached with the application form including Self

Evaluation-cum-Verification Report and list of BIS recognized labs is available on the BIS

website (www.bis.org.in).

 

The licence is granted to the applicant for varieties of products covered under a given Indian

Standard amenable to certification if he has the capability to manufacture and test the product at

the specified location. Applicant is also required to agree to operate the prescribed Scheme of

Testing and Inspection (STI) and pay the Marking Fee during the course of operation of licence.

Marking fee rates and STIs (different for different products) are available on BIS website

(www.bis.org.in) (also see Para 2 under clause 3.1).

44 | P a g e

 The test reports issued by the following laboratories will be accepted for processing the

applications (also please see notes below):

a) All BIS recognized laboratories.

b) Labs of CSIR, ICAR and other similar laboratories.

c) All labs under control of Central Govt. like NTH, RTC etc.

d) All labs under control of State Govt. which are NABL accredited.

e) All Labs of National Level Institutions like IITs, National Metallurgical Institute etc.

f) Labs of Department of Central Universities.

g) Labs of National Institute of Technologies.

 Note 1: In case of BIS accredited labs, if the specific product is not covered in the list of items

for which the laboratory is approved but are similar to the products for which the lab is approved,

the test report of such lab may be accepted.

 Note 2: Applicant shall invariably declare parameters, wherever applicable, at the time of

submission of samples with laboratory for testing. For any clarification in this regard, laboratory

or concerned BIS Branch office may be approached.

 Note 3: Before submission of the samples for testing in any of the approved labs, the applicant

shall ensure from the laboratory preferably in writing that they have complete testing facility for

the specific product and they shall issue complete test report as per relevant Indian Standards in a

definite time period.

 For products having testing facilities available only in BIS laboratories (and not in any of the

labs indicated above) OR where the testing charges of the products in laboratories indicated

above are several times higher than those charged by BIS laboratories, BIS laboratories would

accept samples of such products from applicants and carryout testing after collecting testing

charges fixed by BIS. Applicant however should clearly indicate the related Indian Standard

Specification Number, quantity and description etc. of the product which they intend to get tested

45 | P a g e

in their request to BIS lab for testing. Test Report shall be issued to prospective applicant by BIS

laboratories and such test reports may contain endorsement on each page as “For BIS Internal

Use Only”.

 This scheme excludes processing of applications for products like LPG Cylinders where joint

inspection by BIS along with other Statuary bodies like Chief Controller of explosives is

involved, Cement where permission to manufacture cement is given by Cement Desk of Ministry

of Industry. Nearest BIS BO may be contacted to ascertain details for such products.

 

2 Recording

 If the application is found complete in all respect along with Self Evaluation Report, Test

Reports and other documents, it will be recorded and assigned an application number. The

application is acknowledged and the number is conveyed to the applicant for future reference.

 

3 Processing

 3.1 If verification is to be done by BIS Officer

 The concerned BO where the application has been submitted further scrutinizes the application,

self evaluation-cum-verification report and test report(s) submitted by the Applicant. A factory

visit is normally arranged within 15 days of the submission of application to verify capabilities

of the organization with respect to Manufacturing and Testing facilities and competence of

Quality Assurance Personnel.

 During the visit, sample(s) of product from regular production is also tested, sealed for

Independent Testing in BIS approved laboratory. After receipt of its Test Report(s), the case will

be reviewed. If the sample is found failing, marking shall be stopped immediately and a notice

for cancellation of Licence shall be given. Decision on cancellation shall be taken based on the

merit of the case and as per BIS Act, Rules and Regulations.

46 | P a g e

 In case of discrepancies observed during verification visit, all corrective actions shall be

required to be completed by the applicant in such a time that process of grant of licence is

complete within 30 days. However, extension in time required for compliance, if any, shall be

given to applicant in writing and thus, any delay will be in the account of applicant. The total

time for processing the application in such cases shall not exceed three months. In such cases if

the independent test report from BIS or its approved laboratories (sample of which was drawn

during verification visit) is received in the meantime and found failing, the application may be

rejected and applicant advised to furnish fresh application under the normal procedure after

improving the quality of the product.

 

3.2 If verification is done by Chartered Engineer

 The applicant would submit a certificate (Section C of Self evaluation cum verification report)

from a certified registered Chartered Engineer of relevant discipline certifying the installation

and working of manufacturing machinery, test equipments (as per ISS), production process,

competency of testing personnel, conformity of the test reports to applicable Indian Standards

and other details as per relevant Indian Standards as furnished by the applicant in the self

evaluation-cum-verification report.

On the basis of the certificate by Chartered Engineer, BIS shall consider the grant of licence if all

documents including test reports of the samples are found satisfactory.

 

4 Grant of Licence

Grant of licence shall be considered by the Competent Authority after scrutiny of required

documents submitted by the applicant and verification of the same by BIS to its satisfaction as

per BIS Act, Rules and Regulations and guidelines formulated for the purpose. The details of

such documents are as under:

 a) Application (Form 1) (to be submitted by the applicant)

47 | P a g e

b) Self Evaluation Report (Form II) (to be submitted by the applicant along with application)

c) Verification of the Self Evaluation Report

(by BIS-Section B of Form II/by Chartered Engineer- Section C of Form II)

d) Test report(s) submitted by the applicant meets the criteria of the ISS applied for. Test

report(s) submitted shall not be older than one month covering all requirements including long

term tests, if any and tests on all raw materials (conformity of which have been specified as

mandatory in the relevant Indian Standard).Testing shall be got done according to the relevant

ISS from any of the labs indicated above for the particular product. Where applicant is using BIS

Standard Marked raw materials, the applicant shall not be required to furnish test report of these

raw materials. However, verification of such raw materials shall be done by BIS officer during

verification visit/surveillance visit (if verification is done by Chartered Engineer) and samples of

the same may be drawn for testing in BIS or its recognized laboratories as a market sample.

For products, where there is no testing facility available in any of the laboratories indicated

above, licence shall be granted based testing in the factory for which the applicant should have

complete testing facility in-house for all tests as per related Indian Standards.

 After processing for grant of licence is complete, the applicant is advised to deposit the advance

minimum marking fee as applicable and the annual licence fee through Bank Draft within seven

days and thereafter the approval letter of grant of licence is issued.

 Process of grant of licence is expected to be completed within 30 days of submission of the

application, if all pre-requisites are met by the applicant. At the time of submission of the

application, it should be complete in all respects along with Fee, Self Evaluation Report, Valid

Test Reports (not more than one month old) and other prescribed documents/ requisite details.

 5. Validity

 The initial validity period of the licence is one year. Licence can be renewed for further period

of one/two years, subject to satisfactory operation of licence as observed during periodic

inspections, factory & independent testing of samples drawn from factory and market. The

48 | P a g e

licensee shall apply to BIS on the prescribed Renewal Form along with renewal application fee

of Rs. 500/-, annual licence fee of Rs. 1000/- and marking fee, as applicable.

 

6. Fee

 1. Application fee of Rs. 1000/-(to be submitted with the filled-up application)

2. Charges for verification visit @ Rs. 4000/- per man day for first day and Rs.3000/- for

subsequent days (to be submitted with the application) (If verification is to be done by BIS)

3. Advance annual minimum marking fee (as prescribed by BIS) (different for different

products) (details available on BIS website) (To be deposited at the time of grant of licence and

submission of renewal application) (Annual licence fee of Rs.1000/- is also to be paid at the time

of grant of licence)

4. Renewal application Fee (Rs. 500/-) and Annual licence fee (Rs. 1000/-) (to be submitted at

the time of renewal along with duly filled-in prescribed Renewal Form)

5. The testing charges of the sample(s) drawn during verification visit( if verification is done by

BIS) shall be paid by the applicant along with the application or during verification visit which

shall be adjusted in marking fee to be paid by the applicant at the time of grant of licence.

6. Special visit(s), if required e.g. for inclusion of varieties, resumption of marking etc. for any

shortcoming in the verification by Chartered Engineer @ Rs. 3000 per man day (after grant of

licence).

7. Concession in minimum marking fee for second or subsequent licences would be applicable

as under:

 Minimum Marking Fee (Rs.) Concession (Rs.)

Up to 20000 ---

20001 – 23000 Minimum Marking Fee minus 20000

49 | P a g e

23001 – 35000 3000

35000 – 50000 4000

50001 – 65000 5000

65000 – 80000 6000

Above 80000 8000

 Note: Licence with highest minimum marking fee shall be treated as the first licence, for the

purpose of concession in Minimum Marking Fee.

 8. Applicable Govt. taxes

 For further information please contact: Branch office under whose jurisdiction the manufacturer

is located.

(All information as BIS).

ANNEXURE V

A). COST ESTIMATE FOR SETTING UP OF 10000.00 LITER/Hr. BOTTLING PLANT.

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Sr. No Description of Item Cost in INR

1.0 Mineral Water Plant comprising of complete Treatment Plant. 37,16,000.00

2.0 Bottling Filling Machine Capacity:- 120 BPM (Fully Automatic) 500 ml to 2000 ml.

38,95,000.00

3.0 Computerized Digital Batch & date Coding System. 2,55,000.00

4.0 PET Blow Moulding Machine (Cap – 3600 BPH) with compressor and moulds of size 500 ml, 1000 ml, 2000 ml with spare etc., complete.

45,25,000.00

5.0 Complete Laboratory Set Up (As per BIS) 3,61,667.00

6.0 SS Piping between Plant and Machinery with Tank, Pump and other required accessories.

2,40,000.00

7.0 5-20 liter Jar Brusher, Washer & Filler Unit (AUTO) 12,50,000.00

8.0 BOPP Labeler Unit Fully auto (120-150 BPM) 23,80,000.00

9.0 Carton Sealer Unit – BOPP Tape Sealer (Top & Bottom) 2,64,000.00

10.00 Refrigeration based one No 5 Ton air cooled water chiller with separate SS304/316 tank of 2000 Litres capacity.

2,70,000.00

11.00 TAXES, Duties, Other Charges etc., 42,02,743.00

12.00 TOTAL FOR PLANT MACHINERY 1,76,43,410.00

(Rs. One Crore, Seventy Six Lakhs, Forty Three Thousand, Four Hundred and Ten Only)

Cost for Per Bottle are as follows :

Preform Size

Pack size

Resin cost/Kg

Conversion/ Rs/Kg

Total cost/

Rs/Kg

Preform cost/

Rs/PcCED @ 10.3%

ST @ 4.0 %

TOTAL INR

15 gm 28 500 ml 103.85 18 121.85 1.83 0.19 0.07 2.09

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mm ALASKA21 gm 28 mm ALASKA 1000 ml 103.85 18 121.85 2.56 0.26 0.10 2.9234 gm 28 mm ALASKA 2000 ml 103.85 18 121.85 4.14 0.43 0.17 4.74

100 gm 46 mm 5000 ml 103.85 25 128.85 12.89 1.33 0.52 14.73

For 20 Liter bottle cost of INR 120.00 including all taxes and duties etc.,

BIS license fee, testing of material in independent lab, daily operation maintenance, wages of minimum 7 staff from (Lab assistant-1, operators -2, Plant Manager -1, Accounts-1 and one for utility person-2), than packaged good transportation, labour for loading- unloading (daily basis as when required).

Land cost as Minimum area required for the Plant is 3000 sq. ft for 10000 Liter/Hr. plant.

Water charges not considered for production (Cost if any be fixed by STEM).

ANNEXURE VI

COST OF PRODUCTION FOR 1 LITER WATER BOTTLE

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Sr. No. Various Head Cost In Rs.

1 Bottle Cost (Avg. Cost) Rs. 1.5 - Rs. 2.50

2 Cap Cost Rs. 0.25

3 Treatment Cost Rs. 0.50 -Rs. 1.00

4 Label Cost Rs. 0.25

5 Carton Cost Rs. 0.50

6 Transportation Cost Rs. 0.50 -Rs. 1.00

7 Others (Marketing, etc.,) Rs. 1.00

8 Total Cost ( Excluding Labour, Marketing and Taxes) Rs. 4.50 - 6.50

9 Selling Cost in Market Rs. 9.0 *

ANNEXURE VII

"B" MAN POWER REQUIRED FOR 1 Lakh Liter Plant

Sr. No.

Designation No. of Staff Monthly Salary in INR

Annual Cost in INR

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1 CEO / MD 1 300000.00 3600000.00

2 Admin & Accounts Manager 1 100000.00 1200000.00

3 Area Sales Manager 1 100000.00 1200000.00

4 Sales Supervisor 2 50000.00 1200000.00

5 Sales Representative 25 12000.00 3600000.00

6 Drivers 2 20000.00 480000.00

7 Washer 1 12000.00 144000.00

8 Filler 2 20000.00 480000.00

9 Loader 2 15000.00 360000.00

10 Plant Helper 1 8000.00 96000.00

11 Packing Supervisor 1 8000.00 96000.00

12 Marketing Manager 1 80000.00 960000.00

13 Marketing Officer 1 50000.00 600000.00

14 Watchmen 1 7500.00 90000.00

15 Computer Operator 2 15000.00 360000.00

16 Office Helper, Cleaner etc., 4 8000.00 384000.00

  Total 48 1,48,50,000.00

ANNEXURE VIII

"C" KIOSK SETUP AND OPERATION

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Sr. No. Description No. Cost in INR Total Cost in

INR1 Construction / Setup of Kiosk

with Storage. 20 500000.00 10000000.002 Operators for KIOSK 2 25000.00 600000.003 Helper, Loader 1 10000.00 120000.004 Watchmen 1 10000.00 120000.005 Power and Water Charges LS 25250.00 25250.00

  Total     1,08,65

,250.00

ANNEXURE IX

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"D" CONSTRUCTION AND OTHER SETUP COST FOR PLANTSr. No. Description No. Cost in INR Total Cost in

INR

1

Civil Work / Industrial Shed Area 3000 Sq. Ft @ Rs. 1500 Sq. Ft with Complete Electrification, Plumbing etc., Complete. Includes office, common area, plant area, and store.

1 4500000.00 4500000.00

2 Parking required @ Rs. 200 Sqft of nearly 300 Sq.ft

1 60000.00 60000.00

3 Misc for Meter room, Drains, upto nearest drain etc.,

1 250000.00 250000.00

4 Power Charges 1 3967500.00 3967500.00

  Total     87,77,5

00.00

ANNEXURE X

"E" FURNITURE, FIXTURE OFFICE EQUIPMENT AND OTHER COMPONETSSr. No. Description No. Cost in INR Total Cost in

INR

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1 Table Chairs for CEO/ MD and other Office Staff 28 20000.00 560000.00

2 Chairs for other staff and for Visitors 40 1500.00 60000.003 Internal furnishing, like Cupboards. 10 15000.00 150000.00

4 Computer with required software with 10 number      

4.1 Machine Cost latest configuration. 10 28000.00 280000.004.2 Operating System latest 10 7500.00 75000.004.3 MS Office latest version 10 24000.00 240000.004.4 Tally Multiuser   45000.00 45000.004.5 Internet with Modem etc., 1 25000.00 25000.004.6 Telephone 1 450000.00 450000.004.7 Laser Printer 4 8000.00 32000.004.8 Dot Matrix 1 15000.00 15000.004.9 UPS or Battery Backup 12 4000.00 48000.00

4.10 Server 1 400000.00 400000.00

4.11 Backup hard disk, software’s, pen drives etc., LS 50000.00 50000.00

5 Office Consumables like paper, Cartridges, Pen pencil, log books etc., LS 1000000.00 1000000.00

6

Air Conditioner for Offices and Plant Area. Rate taken as 2.0 T A.C. for area of 2000 Sq. ft Covered leaving storage and other areas with installation and piping etc., Complete.

Rs. 40000 for 2-Ton

AC720000.00 720000.00

7Lorry Truck, Transportation Trucks in and around the cities. Avg. Price taken for Small and Large Loading Vehicle

3 1150000.00 3450000.00

8 Office Vehicles Cars for Transportation of Staff etc., 4 700000.00 2800000.00

9 Small Bus for Staff travels 1 800000.00 800000.0010 Fuel and Maintenance cost for Vehicles LS 2500000.00 2500000.00

11Necessary Approvals like BIS license, regular testing of materials, water quality and other regulatory Approvals

LS 500000.00 500000.00

  Total in Rs. 1,42,00,000.00ANNEXURE XI

"F" RUNNING COST AND MATERIAL COSTSr. No. Description No. Cost in INR Total Cost in

INR

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1

Material for Bottles number of day’s storage cost of nearly 5.5 Lakhs and for 1 Lakhs litre Plant requirement is of 1 truck can carry 2 days material.

     

1.1 Annual Cost considering 360 Days of Plant run. 180 600,000.00 10,80,00,000.00

2

20 Litre Bottles Cost ( Can be used for 3 Months) and considering 10.0% replacement and Total 30000 Litre daily be served by these bottles so required no of bottles are (1500 + 10.00 % ) X 2 for loss i.e. 3300 Bottles every 3 months.

16,500 150.00 24,75,000.00

Total in Rs. 13,75,10,000.00

ANNEXURE XII

G GRAND TOTAL COMPLETE IN Rs. Sum ( A + B + C + D + E + F) 20,38,46,160.00

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"H" MARKETING AND PROMOTIONAL EXPENSES

Sr. No.

Description No. Cost in INR Total Cost in INR

  Total Project Costs 20.00% taken as for Marketing purpose which is Rs. 20.40 Crore.

     

1 TV Commercial @ 50 % of total Budget LS 204,00,000.00 20400000.00

2 NEWSPAPER @ 20 % LS 81,60,000.00 8160000.00

3 BROUCHERS @ 10 % LS 40,80,000.00 4080000.00

4 BANNERS @ 7.5 LS 30,60,000.00 3060000.00

5 HOARDINGS @ 7.5 LS 30,60,000.00 3060000.00

6 PROMOTIONAL SHOWS AND OTHERS @ 5.0%

LS 20,40,000.00 2040000.00

7 ESTIMATED AMOUNT OF FOR ADVERTISMENT OF PROJECT COST 4,08,00,000.00

TOTAL OVERALL COST FOR SETTING UP 1 Lakhs Liter BOTTLING PLANT.

Sr. No.

Description No. Cost in INR Total Cost in INR

1 Total Cost for Plant considering all factors for Setup ( Sum of all G + H) 24,46,46,160.00

NOTE:

Assumptions taken into Consideration while Estimating the Cost:

1) Period of construction and machinery installation is 6 months.

2) Total covered area of 3000 Sq. Ft.

3) The life of Equipments and complete machinery is 10 Years.

4) The cost of required land for plant and Kiosk at respective corporations is not considered as holding corporations are on revenue sharing basis holding of STEM, the profit earned will be shared accordingly.

5) Number of working days are 365 days, while plant capacity of 1lakh liter per day in single shift.

6) Cost of raw water i.e. water required for processing is considered Nil.

7) Maximum capacity utilization is 95.00%.

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8) Sample survey of Bhiwandi city and adjoin major roads and Highways is attached for the same.

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