Water Business : 2025

The Need : Water Vending Machines ( Not a Mineral Water Plant )

The region faces contaminated water

V. Madugula is a place in AP, where residents of a small village had to protest to demonstrate the sorry state of water. Here's a small synopsys of the news I received from Google Alert ( thanks to gemini )

Here are the the impacts of 15 years of quarrying in Anakapalli district:

Quarrying has dried up local streams and borewells across three villages, causing severe water scarcity.
The remaining borewells, even those drilled deep, are yielding contaminated water, forcing villagers to use unsafe sources.
Residents attribute serious health problems directly to consuming this polluted water from the quarrying sites.
Villagers have appealed repeatedly for a mineral water plant and official intervention, but assurances remain unimplemented.
Local leaders threaten to present samples of the polluted water to the District Collector if authorities fail to act.

I don't know how have the villagers come up with demand for a Mineral Water Plant; but the true need is Properly Run Water Vending Stations. Water ATM's

And they should not be just install-forget type; but entrepreneur driven.There is a lot more as a business, Good, Ethical business in this. Watch this Video

These Reports : Greatly misleading !

Today I received an email which was mentioning the growth of the Bottled Water Industry in India. I handed over the link to Gemini and asked it to concise the same for me, and the report ( which is on sale for several thousand USD, and compiled by a US agency ) just says simple 3-4 not so great things. Here's the synopsys of the synopsys provided by Gemini :-

Growth Trajectory: The market is projected to grow from over 84 thousand Crores INR in 2024 to over 2.6 lakh thousand Crores INR by 2033. (12.45% CAGR).
Key Drivers: Growth is fueled by rising health consciousness, concerns over tap water safety, and the expanding spending power of the urban middle class.
Product Shift: The industry is moving toward premiumization and innovation, with strong demand for functional, flavored, and sparkling water options.
Sustainability & Regulation: New FSSAI rules mandate the use of 30% recycled PET (r-PET) in bottles by March 2025, pushing brands toward eco-friendly packaging solutions.
Distribution Change: E-commerce, quick-commerce, and the HoReCa segment are modernizing distribution while brands expand fiercely into Tier-2 and Tier-3 cities.

As a "confirmation Bias" or "Availability Heuristic", people get hooked to these so-called "growth" figures. Let's go deeper to take an overview ....

Consumption Pattern

This whole thing talks about "Bottled" water. How does it easily assume that people are going to get driven by fear, and buy more "Bottled" water ? And who are these people ? only those who live in Urbans, Metros ? Even in Metros, I haven't observed anyone buying a "50 Rs" bottle, when a "20 Rs" bottle is available. The only buy when they are made to. like inside a Food Mall, where only the Bisleri Bliss is available sold at Rs. 30 instead of Rs. 20 the regular Bisleri.

Agreed, there are changes in people's consumptions. It's only by Variety. However, someone looks at this report & thinks that how great opportunity it is, it's only half the truth. The opportunity is to be properly encashed by understanding consumption patterns, locale by locale.

Alternate Solutions

Not that just bottled water is the solution. Who says tap water is bad in every part in India ? It is fairly good, and improving season by season. Rainwater Harvesting is on the move, and people might have their own stored water at their houses. Water Vending Machines ( ATMs ) are also a great way to substitutue the bottled water. It goes further and offers clean, cheap and yet sustainable solution for all.

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.

Want to increase Profit ? Simple 2 Ideas ..

All we know that Profit is :-

Revenue minus Expenditure

To increase profit:-

Increase Revenue and / or
Reduce Expenditure

What's easy ? : The second : Reduce Expenditure

If you are already running a Water Plant, here are quick 2 ways of investing which will get you massive profits :-

Invest in Solar Roof Top System ( Check Video )
Invest in Rain Water Harvesting ( Check Video )

Both of these systems are almost 1 time : Fill-Shut-Forget type.

Please check both the videos for both of them and shall be coming up with more & more content on this, as we believe, Profit is the Oxygen for businesses.

Economic ways for groundwater through ancient wisdom in India

As we all are aware, the Rishi-Culture was well established in India ( rather the "indus" valley ). This small writes about a very profound study of groundwater by a Rishi "Varh-Mihir". Let me first summarise the work he has done regarding Groundwater :-

He has identified Trees,Species & Soil, which can tell us where the source stream will be which leads to an aquifer. His research is backed up by many experiemnets ( obviously ). In 1980, The GOI alongwith ISRO, funded a research in the Chittoor part of Andhra. Some 150 borewells were dug, and every borewell got water.

There must be many books available, however, I have read a book in Marathi, autored by Prof Rajani Jashi & published by Sakal Prakashan, called "जमिनीखालील पाण्याच्या शोधाचे प्राचीन शास्त्र". Many experiments were conducted near Barshi, Maharahtra & it can safely concluded that the Rishi's methods can be well implemented in India, at least where urbanisation has not spoilt the environment. From where the references were taken.

Who was Varah-Mihir ?

He was born on 20th March in 6th Century, 505, And lived long till 587. He lived in Ujjain, near Indore & served lord Vikramaditya. Out of many books he wrote, the "Brihat-Samhita" relates to the water enthusiasts. Moreover, the "Dakargal" ( दकार्गल ) chapter from the same. "Dak" meaning udak... Water & "Argala" meaning the signs of finding water.

Aquapeya gets funded through Shark-Tank India

Aqua Peya Beverages: From Local Distributor to 12 Crore Turnover Empire

Humble Beginnings, Ambitious Growth

Aqua Peya Beverages, a company born from the vision of local distributors in Sangli, Maharashtra, has made a remarkable journey. With a 40,000 sq ft factory, a network spanning 9,700 retail outlets, and 90+ channel partners, they've reached 50,000 consumers. Their pitch on Shark Tank India, seeking 70 Lakh for 2% equity, revealed a story of resilience and strategic growth.

The Genesis: From Local Distribution to Manufacturing

2003: The journey began as a local FMCG distributor in Sangli, Maharashtra.
2008-09: They became C&F agents for Manpasand Beverages, gaining valuable industry experience.
2017: A pivotal moment arrived when the elder brother suggested establishing a small water plant, marking their entry into manufacturing.

Taking the Plunge: Overcoming Initial Hurdles

To understand the industry, the owners visited Bisleri Manufacturing facility in Pune and machinery manufacturers. They quickly realized that a small plant was not viable. Instead, they took a bold step:

Initiated a 3 Crore plant, securing a 1.5 Crore loan against their property.
Faced objections from shark tank panelists like Namita regarding potential brand duplication, which they countered by emphasizing that water, like milk, is a service industry, not just a commodity. Hence just "Brand" doesn't matter much.

Expanding Horizons: Entering the Carbonated Beverage Market

While not their primary focus, Aqua Peya ventured into carbonated beverages, driven by the concept of "basket selling." This strategic move aimed to broaden their product offerings and cater to diverse consumer preferences.

Financial Performance: A Story of Profitability

Sales for FY 2023-24 reached 9 Crore, with the company claiming profitability from day one.
FY 2024-25 projections: 4.5 Crore by September 2024, and an expected 12 Crore by March.
EBITDA: Increased from 7.8% to 16% in the last year, and 18% in the current year.
DSO (Days Sales Outstanding): Maintained at a maximum of 15 days.
1 Ltr Bottle: Operating level profit of 1.25 Rs on a 6.5 Rs sale price.
PBT(Profit Before Tax) : 5% of 9CR sale, which is 45 Lakhs.

Key Financial Insights:

The operating level profit, including expenses, demonstrates efficient management.
The PBT, at 5%, is a crucial metric, considering their loan obligations and machinery investments.
Their margins are approximately 20% on the 1 Ltr bottle.
They sell to distrubutors at 6.5 Rs, and to retailers at 8 Rs. Bisleri sells to distributors at 12 Rs and to retailers at 13 Rs.

Shark Tank Offers: Two Investors combine

Namita Thapar (Emcure) & Ritesh Agarwal (Oyo):
- Valued the company at 24 Crore (2 times the projected 12 Crore sales).
- Offered 70 Lakh for 3% equity.
- Proposed a 2% royalty until investment is recovered.
- Emphasized the potential of each retailer selling one box at 100 Rs.
- Offered mentorship, and guidance.
- Proposed Co-branding with 10,000 OYO Branded Hotels. This was the major "Flip".
- Referenced the Paperboat story, and their distribution through Indigo.

Conclusion: A Promising Future

Aqua Peya Beverages' journey from a local distributor to a growing beverage manufacturer is a testament to their entrepreneurial spirit. The offers from Namita Thapar and Ritesh Agarwal highlight the company's potential. Whether they choose strategic investment or expansive distribution, Aqua Peya is poised for continued growth in the competitive beverage market.

The Original Video