How easy is someone starting a Bottled Water Business from scratch in India ?

If it's your 1st time venture, take a step by step approach. Start from being a Distributor to some brand. Then go for Co-Packing, meaning, under your brand supply to others, however, not producing the water by yourself. It will be someone else's water. Then after some time, once you are confident, start your own plant.

Which stage is right for these steps ?

The volume you sell is critical. Let's take example of 1 ltr bottles, which are more popular in Indian market. 

• Once you reach daily 200 cases ( 12*200 ) , and maintain the level for 6 months, think of co-packing.
• Once you reach daily 700-800 cases, and manintain for 6 months, start with own plant.

Major Things for a Manufacturer :

• At least 5000 sft land, 3000 sft building
• Local licenses + Fssai License
• Capital : 35 Lakh for Jar , 70 Lakh for Bottle + Jar 
• Payback : 4 Years, if you run 1 shift daily for 300 days/year , for 4 years

Major Things for a Distributor:

• At least office space ( 500 sft )
• Local licenses + Fssai License as distributor
• Capital : Max 1-3 Lakh
• Payback : No calculation

Major Things for a Co-Packer:

• At least office space ( 500 sft )
• Local licenses + Fssai License as Re-Labeller
• Capital : Max 5-15 Lakh
• Payback : No calculation
• ** A Co-Packer is also considered to be a Manufacturer

For Fssai Explaination check this Youtube Playlist 

Start with gathering necessary information first

• Read : https://mineralwaterprojectinformation.org/access-free-stuff/
• FAQs on Quora :- https://www.quora.com/profile/Saumitra-M-Ghotikar/answers
• Listen to this Video :- https://youtu.be/viIi4Workc8
• Get Educated ( After you acquire free stuff :- https://mineralwaterprojectinformation.org/trainings/

No Business is "Easy", so is Bottled water.

Bottled Water Business under Fssai

As you may/may not be aware, that the Packaged Drinking Water & the Natural Mineral Water don't carry the "Mandatory BIS" tag, and now just need 1 License : the Fssai. We also have a special article on this. 

Last October, 2024 this became a Gazetter notification, then in November, Fssai declared Water as a High Risk commodity. Now, after almost 10 months past the same, how the Bottled Water business is viewing its future ?

Major compliances & changes 

• The declaration under High-Risk makes the quality checks very stringent.
• There are very heavy penalties for non-compliance.
• There is currently no special lab needed as was needed under the BIS. 
• 2 Lab reports needed to be submitted every 6 months
• 1 Annual Audit will be compulsory. Its with certain quality checks.
• Pre establishment plant inspection is mandatory ( as was in the BIS )
• CGWA NOC is going to be mandatory for every plant. 

Effects 

Entering this business is easier ( Just Rs.7500 annual fee instead of Rs. 1,00,000 + for BIS

The compulsion ( at present ) of having a lab has gone. This brings the Capex down. And opex as well.

Heavy Penalties threaten the plant owner about strict compliances.

Non-regulated earlier ( The Water Vending / ATM ) businesses have a chance to get regularized.

The water-borne diseases due to these unregistered vending stations, will be expected to come down as they can get an Fssai license & will be subject to the Lab reports necessary.

Overall it looks a little challenging to the plant owners, who enjoyed marketing-less freedom till this time. They will need to equip themselves with latest trends to sustain in the market.

You can alse watch a Youtube Short on this subject.

Water ATM water will also be very safe henceforth

Fssai, the Food Business Regulator in India, has posted a draft regulation ( as per FNB News ) that water produced through Water Vending Machines will be subject to tests as per Fssai guidelines. 

Draft Requirements for Standards

• Physical Parameters: 6

• General Parameters: 24

• Toxic Substances: 11 parameters

• Radioactive Residues: 3 parameters

• Microbiological Requirements: 2 parameters

• Pesticide Residues: 18 parameters

We are waiting for the final news to roll-out. When it's there, you can have it. It's still not known, as to :-

• Where will these be tested ? In-house at the ATM, or outside lab
• How frequently the tests need to be in place.
• Who will be the inspecting authority 

Usually under Fssai, if its not under "High Risk", it calls for annual audits. 

This is a different category to be rolled out soon, under 2.10.9 ( At present it ends at 2.10.8. It's interesting to see how this Vending Machine ( Water ATM Water ) will be categorized as :-

FSSAI explains that “water vending machine” means decentralised water purification systems that purify and dispense water and does not include installation intended for use of water for captive consumption. ( FNB News )

Usually Water ATM water uses either municipal water or whatever supplied to it. Although there is an in-built ( usually ) RO system, there as no norm present to check the outlet water. Now it might be in-place.

Good News for consumers

Consumers will have a better trust in drinking water from such a system and if it's implemented well by the govt, this can be an excellent tool to beat plastic pollution. 

What is a Water Vending Machine/ATM ? 

This is a machine which filters water, and dispenses through a tap, in predetermined, mesured quantity into any container placed below. They can be card/coin driven. Water ATM is a very good Business Model.

Water ATMs : Again......

"Chennai getting 50 Water ATMs soon" 

"Ayodhya gets its 1st water ATM"

Seems great news. The projects are truly good, but news is not. Why ? Because it's Govt run-Govt Funded project. The experience so far with Govt funded-run-maintained Water ATMs are no good at all. The reason being it serves the "News" purpose, and funded by you and me.

• The project is noble.
• Money is sanctioned.
• Tenders are floated.
• Agencies are finalised.
• The service part is also in the contract.
• But who inspects ? Don't know.
• Result : Majority of them remain defunct.

Solution ?

Ask Coca Cola to stop Bottled Water and produce Water ATMs. Will it do that ? Never. In fact, Water ATM should be a national level priority. To

• Save Groundwater
• No Plastic

But no-one will come forward. Only a handful of business owners have seen this great opportunity. Yes, Water ATM it is an opportunity.