Is installing own Bottling Plant a viable option ?

Recently I read a news that Cybage, an IT company installed its own Bottling plant at its Pune Unit. I was first curious, and then quite surprised to see the same. It wasn't clearly mentioned in the news ( for which it was meant 😀). I could find out from some pics :-

Instagram Story 👇

Looks like a Glass Bottle 👇

Yes, it must be a glass bottle 👇

The Capping Method is ROPP Capping, used for glass bottles with Aluminium Caps like those medicinal bottles, mostly. Had it been Plastic, the mechanism is different.

Why is the company doing it ?

They say : 

Also :- 

It's done as a step towards the ESG initiatives. Well, what is this ? 👇

My opinion about having own bottling plant :-

1. Technically, it's like installing a swimming pool for own family. You will do that if you truly afford that, OR if you are getting certain advantage, like cybage is doing for. They are doing it towards the ESG , indirectly contributing to the 17 SDGs. Intention : Investors & Tax.
2. 80,000 Bottles a year ( looks like a 500ml Bottle ) is not a huge consumption for which it stands a wise decision, in any sense, besides the ESG thing. It becomes 7000 bottles a month, 250 bottles a day of 500 ml. Nothing. They could have easily outsourced that.
3. To maintain a full-scale bottling plant for such a small consumption looks not correct. They haven't specified the water source. If it's RO Plant + The filling Machine.... It needs technicians too.
4. However, It is also possible that they have outsourced the full operations without buying anything. It might make some sense in this decision. Caring the plastic waste is truly a good intention.
5. There was a still better option, if they could implement Water ATMs. Water ATMs not just cut Plastic, but also omits the usage of Bottles. The Glass Bottle Manufacturing also carries a huge Carbon Footprint. Buying Glass Bottles, consuming them is also indirectly contributing to disrupting the environment.

For Machinery Suppliers 

• This can be another business model. Approach High-Profit companies, suggest them this idea, talk more on ESG : They will understand immediately, it's a buzz-word.
• You can also take contract for running a plant at a cost per bottle model in addition
• Can install a number of Water ATMs in premises of big companies & maintain them at cost. This can also attract good CSR business.

Truth : We only learn by committing mistakes

A little background is necessary to understand what & why I am saying this 👇

I conduct trainings for the bottled water entrepreneurs. ( no-no, this post is not to promote that😐 ). Point is something else. My trainings are for the business "owners". In trainings, I do talk about machines, however, I am strictly keeping myself away from suggesting suppliers, however, I do guide on what to look into appointing one. I also don't train on procedural part, focus on quality aspects rather than this. 

My focus is more towards the ROI aspect. I do train people on designing their plant capacity propely, so that they choose right machines, at the right stages of their business venture.

For years togther ( before Covid ) I used to conduct physical trainings at PUNE, and other cities. These trainings, due to cost limitations, were for 1-2 days. However, post covid, I started offering the same training in half the price through internet, I settled on a 4-day training course through 90 min session each day.

Entrepreneurs did use to join, however, somehow I was never satisfied, feeling it's incomplete, I took a whole 1 year gap ( 2023 ). And restarted from April 2024, with a 2- Week, 10 session course, same cost course, in evening. Now this is having a good response & good satisfaction to me too.

Main reason : The subject lingers in the participant's mind for more time. In turn he/she has more queries. Further to this, I also offer them a 1:1 assesment in which they can ask me their very personal queries too.

Still, in each of my batches, I find at least 1-2 participants who join after ordering the plant & machinery. Most of them find that they have bought some machines under their emotional influence.

Why do we commit certain mistakes & how can we avoid them ?

• Many a times entrepreneurs prefer listening to the suppliers. I have found they even decide their plant capcities also on the basis of suggestions passed by the supplier. It's really important to know that the supplier's business is selling Machinery & NOT water.
• Entrepreneurs work on a Dead-line based approach. Deadlines are necessary, but after you properly appoint suppliers. No compromise on that.
• Entrepreneurs start over day-dreaming the project & loose sight of the logical steps, like financial projections, getting hands-on experience, doing a proper market survey, starting a distributor business first etc. Somehow they don't love this "distributor" idea & they want that production unit only, though it sounds expensive. They do not see much happening in that.
• Entrepreneurs don't love selling much, as well as accounting. They worry too much about marketing, after starting the plant process. Instead they should create their market in advance.
• We do cover many of these aspects in our course & we charge fees ( Rs. 5,900 presently ). Instead of taking this course, they go on buying machinery worth 50-70 lakhs.

Question is : Why it happens ?

• Over popularity of phrases like "I don't waste time thinking, I just do it"
• The deadline based approach as I mentioned above
• Push by intermediary institutions who distribute loans, funds
• Getting caught by Govt's special schemes who offer incentives to entrepreneurs without being trained for business
• Govt too has trainings, however, these trainings have not been observed to be upto the mark.
• Getting trapped in the FREE trainings, the suppliers offer. However, they are mainly created to sell their stuff.

How can this be avoided ?

1. Believing firmly that, until my idea is not justified, validated through a Financial Document, I won't take a single step further. 
2. Once it's validated, I will try to get a hands-on experience if possible, may-be by payment or by working for free. ( I am trying to find a mid-way by creating a digital course for this purpose )
3. Get an idea as to who will be buying your stuff actually. Do some marketing through distribution.
4. Now, have a fresh look at your financials once more, make project plan. Check funding etc.

Alternate method :-

Learn through mistakes 😅 ( This is what the world is doing ). Expensive way.

Intention of marking Bottled Water as "Risky"

Recently fssai has marked Packaged Drinking Water as a "High-Risk" thing. Let's see the real meaning of this :-

• If you saw this on internet & media, just read it as another news.
• It's done after there has been removel of the "mandatory" tag by the BIS.
• Since there may be huge entrants in this category, it's here to retain the quality checks, nothing else.
• It's not at all a new step from govt towards improving health standards, as many of the news blogs, sites publicizing.
• Earlier the water was under compulsory certification from the BIS ( ISI mark ), which was much more stringent in quality monitoring compared to fssai. In fact, fssai themselves had made a directive to get an ISI license before applying for fssai.
• Though there were 2 licenses needed, there was a good division between them, BIS looked after the quality of water for safety towards consumption & fssai, used to check, the usage, commercialization, storefronts etc. It was a natural distinction between the 2 regulatories. Working not the best, however, were in-place.
• Now, since BIS is not compulsory, let's see how it affects the quality of bottled water.

Conclusion : There was no special "Annual Check" in BIS, as there were daily, weekly, monthly, 6-monthly & Yearly internal checks, with a built-in lab, which won't be there. In this place, there will be this "Annual Inspection" by the fssai. It's not any extra ordinary measure by the Govt.

Are we prepared for the future ?

While talking to various people concerning water business, about the Govt's decision to withdraw the "mandatory" tag for Packaged drinking Water, I am experiencing strange responses. Some are still not prepared to talk on the effects, waiting for final rules fssai will post. Some of them seem to be in denial mode like "there's no sufficient manpower with fssai". Some are shocked & complaining like they are victimised. No one seemed much happy & welcoming this decision.

I think, we as business owners are not taking future seriously enough. We should know, the economy is opening out, and with that, the license raaj is to go-out. This decision is a symbolic exexution of that. Reduced entry barriers. 

On the same lines, we should know that the PET is in danger. 90% of it is recycled, doesn't mean it's not dangerous. There is no alternative to PET for bottled water can't be the comfort zone. Suddenly there can be a law not to produce PET bottles anymore. Don't sail smooth & buy bigger Blowing Machines. Rather, try to find alternatives. If you are aware of the 17 SDG's , you will need to care about what I want to say.

The circumstances always give us indications, well in advance. As a business owner, do I look into it ?

Multinationals do.

Recently, I visited a Cafe at a Shell Petrol Pump. The cafe was good, however, not much crowded. It raised my curiosity to ask the manager as to what is the purpose of running this cafe inside the main city part ( not highway ).

Company is looking at next 20 years, he said. There won't be fuel like Diesel, Petrol in future. There will be charging stations, and they need time to get the vehicle charged. To spend the time during that, the cafes are purposed.

Thing to learn : Shell is learning & implementing decisions by listening to future. Can't I ?