How To Start Pure Water Business In Nigeria

How To Start Pure Water Business In Nigeria

How To Start Pure Water Business In Nigeria

Starting a pure water production business in Nigeria is a profitable business because the great majority of the population consumes water packed in sachets.

Many people buy pure water because of the low cost and general lack of access caused by the government’s incapacity to provide clean and potable drinking water.

One reality about the pure water business is that it will have a thriving market in the country for a long time because most areas across the 36 states and the FCT are facing the difficulty of no piped water.

There is no better moment for a smart entrepreneur to seize this money-making opportunity than now. To start a pure water business in Nigeria, you will need to follow specific requirements on How To Start Pure Water Business In Nigeria, which will be covered in this post.

Business Plan

Writing a business plan is as important to a bakery business as it is to a pure water production business, be it small or large scale. One may not need an elaborate feasibility study since the market is already booming due to high demand.

What will form the core of your business plan should be the amount of money needed, how it will be used, the projected profit, the strengths and weaknesses of the business, and how to address them.

The reason a business plan is essential is so that investors can have a deep understanding of what they will be pumping their money into. It can also account for the type of building to be used for the company’s production process. It could be a bungalow or blocks of flats.

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Register Business With CAC & NAFDAC

Every business that operates in Nigeria, whether a sole proprietorship or limited liability company needs to be registered with the Corporate Affairs Commission, (CAC) to provide a sense of accountability and legitimacy. It will also give your brand a trustworthy outlook.

Not every company needs to get approval from NAFDAC, but pure water is a product that is consumed, just like soft drinks and food, so you must apply for a permit before starting sachet water production.

Get Capital

When your business passes the stage of just being an idea to having a registration number, it is now official that you have a company. The next step is to source for capital. There are loan platforms that give loans to individuals seeking to start a business, so one can research those.

Starting a sachet water business that meets the best standards is not something that can executed with N100,000 or N200,000, this is because you have to factor in the acquisition of materials and equipment used to generate, treat, and package the sachets water which are not cheap.

On average, the cost of setting up a pure water business in Nigeria ranges from N5 million to N25 million and this depends on the size.

Location For Factory

Getting a location where the factory will operate is another important aspect. One may consider leasing a suitable accommodation, buying a plot of land and building a structure, or converting a building that you already own. Bear in mind that it should be situated in a place where there will be uninterrupted water supply. That means you will need to sink a borehole.

Install Distillation System

A distillation system purifies the water before it is packaged for sale to consumers. You can install the full-scale distillation system or the ultraviolet sterilization bulbs process depending on the start-up capacity of the enterprise.

To know the actual cost of distillation equipment, one must do market research and include it in the business plan. Interestingly, most sachet water manufacturers use ultraviolet bulbs for purification which is not that effective but comes at a cheap price.

Get Equipment/Materials

For a pure water company to be up and running the equipment you need include; an automatic sealing machine, packaging materials (sachet nylon and bagging nylon), activated charcoal, dosing pumps, mineral acids, alkali, green sand, hydrogen peroxide, liquid chlorine, ultraviolet lamps, ultraviolet sterilizer, microfilter cartridges, pumping machine, PVC water tanks.

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How To Start Pure Water Business

Hire/Recruit workers

A pure water company cannot be run by a single individual so one would have to hire skilled workers that will handle the day-to-day job at the factory. Technical staff will be needed because most of the workload will be done by people who have experience.

Ensure any staff you hire has the requisite knowledge and is up to the task. The staff you need to recruit are; operators, packagers, cleaners, drivers, loaders, salespersons, security personnel, a supervisor or manager, and a cashier.

Note that it is risky to assume staff would learn on the job regarding food production or processing business as this is an area where a little error can ruin the entire output of the business.

Provide Stable Electricity

Stable electricity is the most important thing you must make provision for or else you are wasting your time going into pure water production business. Almost every equipment in the factory requires power to function, so if your business is not located in an area where there is an uninterrupted power supply you need to get a generating set. There are certain types of generators pure water makers use, so you can inquire from those who are already in the business.

Acquire Supply Truck

Buy a truck for distribution which should be able to transport bags of pure water in reasonable quantity. Make sure you get a truck that can withstand Nigerian roads because in most cases, you will be going to places that have rocky untarred roads to supply to retailers or consumers. An example of a truck that’s reliable is a fairly used Mitsubishi Canter which can be purchased at around N3 million.

Marketing And Sales

Every business needs a marketing or advertising plan so that people can know about your goods and services. Use the various available marketing channels to spread the word about your pure water business.

Since the sector is a competitive one in Nigeria, find ways to make your business stand out from your competitors, it could be through your brand design, name, or sale strategies.

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Conclusion

To run a successful pure water business in Nigeria, consider the advice above, as well as research from other business owners in the same sector who have shared their experiences.

There is no single advice that will guarantee you success on How To Start Pure Water Business In Nigeria, but with an effective and well-planned market survey and strategy implementation, you will be able to launch easily.

Pure water entrepreneurs in Nigeria consistently earn large sums of money each year, whether as manufacturers or wholesalers, because the demand for good, pure water at an affordable price continues to rise.

Frequently Asked Questions (FAQs) about How To Start Pure Water Business In Nigeria

Q: How much is pure water Machine in Nigeria?

A: The price range for a quality Pure water machine in Nigeria is from N800,000 to N2,000,000.

Q: How much is the complete set of pure water machine?

A: The complete set of pure water machine prices in Nigeria ranges from N3,000,000 to N5,000,000.

Q: Is the pure water business profitable in Nigeria?

A: Yes, the pure water business is highly profitable in Nigeria due to the high demand for clean and affordable drinking water, especially in urban and rural areas where access to clean water is limited.

Q: What is the name of pure water machine?

A: A pure water-making machine, is usually called a water purification system or reverse osmosis system

Q: What are the steps to start a pure water business in Nigeria?

A:

  •  Conduct market research to understand the demand for purified water in your target area.
  • Obtain necessary licenses and permits from regulatory bodies, such as NAFDAC (National Agency for Food and Drug Administration and Control).
  • Set up a water purification plant with the necessary equipment, including water treatment systems, filtration units, and packaging machines.
  • Source high-quality water supply and ensure it undergoes thorough purification processes.
  • Invest in quality packaging materials, such as plastic sachets or bottles, and ensure proper labeling.
  • Develop a distribution network to deliver your pure water to retailers, supermarkets, and other outlets.
  • Implement stringent quality control measures to maintain the purity and safety of your water.
  • Market your pure water brand through effective advertising and promotional strategies to attract customers.

Q: How much capital is required to start a pure water business in Nigeria?

A: The capital required to start a pure water business in Nigeria can vary depending on factors such as the scale of operations, location, and equipment costs. However, an estimated startup capital of between ₦5,000,000 to ₦25,000,000 may be needed to cover expenses such as equipment purchase, water source development, packaging materials, and operational costs.

Q: What are the challenges of starting a pure water business in Nigeria?

A: Some common challenges of starting a pure water business in Nigeria include:

  • Intense competition from existing brands.
  • High cost of equipment and machinery.
  • Regulatory requirements and bureaucracy.
  • Ensuring consistent water quality and safety standards.
  • Transportation and distribution logistics.
  • Power supply and infrastructure challenges.
  • Seasonal variations in demand.

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