Fear of what ?......

I've generally observed that the Bottled Water Plant Owners in India show great hesitation ( rather they restrict/say no ) to collaborative opportunities😐. Typically when I suggest them to work with people who want to get water bottled from them and brand it as their own.

I truly do not know the reason behind it. And I am sure no plant owner will come and tell me the reason.

One plant owner, whom I know moderately, who does this for some brand owners. He said he would love to fill just the dead production hours.Meaning, entertaining these people (who don't have their own brands) just when he faces a challenge of not having enough volume to meet his break-even point. However, this plant owner was venting out his frustration over brand owners who refuse to guarantee long-term volumes, often failing to honor the very commitments that justified the production setup. This lack of stability makes it difficult for manufacturers to invest confidently in the partnership.

Another funny incident when a plant owner, outright rejected a proposal of this type of work (co-packing) for reasons known to him only. An important point to learn that this plant owner, had recently begun his operations, and all set to order 120 BPM production line from 60 BPM. It is difficult to justify a 'shortage' when a plant has barely finished its first quarter of operation, a period usually reserved for learning the business's baseline. One has to wonder if such a hasty denial of co-packing proposals stems from a genuine lack of space or simply an internal resistance to collaborative growth.

What is the main reason behind this reluctance  ?

Behind the shield of 'production shortages' often lies a deeper anxiety: the fear of nurturing a competitor under one’s own roof. For many plant owners, co-packing isn't just a business deal; it’s a perceived threat to their intellectual property and operational autonomy.

I have spoken to a lady who owns a business ( she makes cookies ), well-known to me. She was once proudly telling me as to how she taught a lesson to a "trader" who bought cookies from her & sold to his customers with her his own brand. She denied of supplying her any new order/s.

Can risk be calculated ?

The word "Risk" itself is pointing towards journey into the unknown. However, it need not be a 100% unforeseen risk, and on the top of it, it can be known at least, if can't be avoided.

While most of Bottled Water Entrepreneurs check technicals of the project, visit many suppliers at various places, and collect a great piece of information, they actually do not devote enough time for their detailed Financial Calculations. The most important is the actual Risk involved.

"Should I venture into this ?"

This is a typical question every entrereneur asks. My answer to them : If your gut feeling says, go ahead, however, check the amount of risk before that, as any wrong decision may pull you into damage which takes years to recover from.

Can it be a "Calculated" Risk ?

Absolutely yes. 3 ways to do it. Let's explore those :-

1. Very first, understand the ROI & overall investment needed : Refer the online/offline material to first confirm this & check your own investment appetitie. Then decide the business Model.There is nothing wrong to start small. 
2. Thing Big Right : Check your Financial Position, if you can insure for the same. Calculate the holding period :- The number of months which may go without active income & make arrangements for the same. You should and can calculate the impact which these months will make.
3. Loan is Okay, but not a Victory : Loan is an asset for Bankers, initially a liability for an entrepreneur. Take it carefully. No problem being extra careful. Calculate everything before going to banks. This step is most important.

Be Wise, no Heroics

Optimism is proved when it realizes the deliverables. Hence the "deliverables" is the true wealth you make & contribute towards the national treasure. It's a very responsible decision. By becoming a financially aware entrepreneur, you are taking a step towards this. It's a DUTY.