Pure water is a commodity highly consumed by millions of Nigerians daily. With the daily high consumption rate of the product, it can be an attractive investment opportunity for anyone looking to start a pure water business in Nigeria.
In Nigeria, the clean water business is popular due to the ever-increasing population and the government’s incapacity to provide safe and inexpensive drinking water.
Due to the scarcity of clean drinking water in some regions of Nigeria, establishing a pure water factory makes good commercial sense. The clean water industry in Nigeria is tremendously profitable, but it takes a substantial investment.
If you wish to start a pure water business in Nigeria, I can tell you that you will earn a profit if you set up your business correctly and use a smart marketing approach.
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What You Need To start a pure water business in Nigeria
Like any other business, some important things need to be considered before starting a pure water business in Nigeria. The market today is very filled with lots of competing producers and sellers.
However, you will not lose interest because of these figures; rather, they will provide you with a challenge to be the leading brand in the business. The following is a step-by-step instruction on starting a pure water business in Nigeria.
Have A Business Plan
Your business plan is a written document containing all of the information about how you want to start a business and your operational goals and strategies. You must carefully develop your company strategy and how you intend to attain your business goals.
A solid business plan specifies the company’s goals and objectives and tactics for achieving them. It entails market research and analysis, cost analysis, price structure, risk analysis, and forecasting of the future. It will be simple to get funding from investors if you do all of these things.
The business plan is a document that can be amended, you may alter it as your company expands. You might employ a professional consultant to assist you in writing your plan.
Capital is essential in the operation of any firm. Depending on the size you intend to operate, the bottled or pure water company is capital intensive.
Other cost elements to consider are the cost of land, building construction, borehole drilling, vans, distillation machines, tanks, and other costly equipment necessary for running the firm.
If you wish to start a pure water business in Nigeria, you must have sufficient funds or assets to convert to cash. Other options for raising funds include soliciting soft loans from family and friends. Learn to pitch your business to investors, it will help you when seeking funding.
Register The Business With NAFDAC
To start a pure water business in Nigeria, you must first register your company. Every food and drug company, including alcoholic beverages, must be registered under the necessary government agency.
The National Agency for Food and Drug Administration and Control (NAFDAC) monitors the quality of packaged water in Nigeria. It monitors and controls the production, importation, and distribution of food, pharmaceuticals, cosmetics, medical equipment, chemicals, detergents, medical services, and consumables.
Obtaining NAFDAC clearance is a progressive procedure that might take longer if the process is not completed appropriately. You may also register for the certificate and inspection on NAFDAC.
Starting a pure water business will also require some legal processes. You can read on the legal requirements to start a business in Nigeria for more information.
Find A Suitable Location
To start a pure water business in Nigeria, you must create a factory. This means you’ll need to acquire land, and depending on your cash, you’ll be able to lease or build your factory. The structure might be large or small, but it must adhere to the typical industrial design for ease of production.
A general office, a water production room, a storage material room, a restroom, a changing/cloakroom, and a laboratory are all part of the plan. Additionally, make certain that the producing location is free of water and air pollution. You must ensure a steady power supply available at the factory. The factory should be located in a safe region with an adequate road network.
You must either drill a borehole or collaborate with water-producing corporate organizations. Water is a raw material used in the pure water industry and must be readily available.
Get Necessary Facilities In Place
If you want to establish a pure water-producing firm, you’ll need an overhead tank and a reservoir for backup. Then, make preparations for routine water treatment. Water treatment is key when you plan to start a pure water business in Nigeria. Therefore I’ll go through how to set up a water treatment system.
Install A Water Treatment System
This is the removal of unwanted chemicals, biological pollutants, suspended particles, and gasses from water. It is done to make water safe to drink.
When you plan to start a pure water business in Nigeria, consider that the water purification techniques employed are full-scale distillation systems, Ultraviolet sterilization, or reverse Osmosis, depending on the enterprise’s startup capacity. I’ll go over these systems in more depth.
The distillation system is the most effective and expensive way to purify water production. It involves boiling water to produce vapor. It removes organic matter such as viruses, organic and inorganic chemicals, germs, etc.
- Reverse Osmosis (RO)
Reverse Osmosis is another filtration technology to consider when you want to start a pure water business in Nigeria. This water purification method uses a partially permeable membrane to remove ions and undesirable compounds from drinking water.
It may also be used to cleanse drinking and cooking water by removing microorganisms from it.
- Ultraviolet Water Purification
Ultraviolet light purification is a practical, non-chemical form of water purification. It is a safe and effective disinfectant used in residential and industrial water systems. It is not enough to purify drinking water, so it is combined with reversible osmosis systems to provide complete purification.
Suppose you are planning to start a pure water business in Nigeria. In that case, you already know that you cannot do the work alone; you need to get involved with other people, which is why hiring is important to start a pure water business in Nigeria.
Learning the pros and cons of outsourcing in business is needed here. You need to employ machine operators, cleaners, drivers, heads of departments, security guards, managers, and cashiers.
No company is without a market strategy. Learn to study the market before you start distributing. Serve stores or customers early enough always to have your products to sell to their customers. Make sure you verify their creditworthiness before giving them credit. Otherwise, they may exclude you from the business.
Since water cannot be without use, you need to have customers far and wide like friends and acquaintances, student hostels, restaurants, pharmacists, street vendors, shopkeepers, and market stalls.
Other Resources you Need to Start a Pure Water Business in Nigeria
Automatic Sealing Machine
It is essential to have a sealing machine to start a pure water business in Nigeria. This is used to pack and seal all types of liquids without glasses. It may be used to seal water, wine, and other liquids. Depending on your manufacturing capability, you can begin with one, two, or three.
Nylons And Bottles
It is important to have these when you plan to start a pure water business in Nigeria, as they will carry the logo and name of your company.
It is wise for you to consider having an alternative power supply source. One challenge of starting a pure water factory in Nigeria is electricity.
Other equipment needed in the pure water factory business include;
- Packaging nylons
- Water micro filters and cartridges
- Drums, buckets, and plastic baskets
- Disposable hand gloves
Ensure you wash your tank every month; you can outsource contract staff to help with the washing.
5 Cons Of The Pure Water Business
Every business has drawbacks, but conducting thorough market research ahead of time can help you overcome any obstacles.
I’ll go over some of the issues you can encounter if you start a pure water business in Nigeria:
Failure to Make Sales on Time
The water manufactured has an expiry date, and as the deadline approaches, consumers will no longer want to purchase such pure water.
Fluctuation in Production Costs
Prices of materials such as nylon and petroleum might arise at any time, whereas the price of clean water remains constant. This will increase the cost of production and reduce profit.
If you look closely, you will find that most vehicles utilized for pure water distribution are in poor condition. This is because of the stress and usage they are subjected to. You must maintain the car and have a skilled technician who will maintain the vehicle regularly.
You must also maintain the various devices and equipment utilized in manufacturing, such as generators, sealing, and pumping machines.
Competition in the water industry is very high. Even your consumers will receive items from other manufacturers at some time for various reasons.
To ensure that your items are always sold in the market daily, always treat your employees with respect.
When starting a pure water factory in Nigeria, one effective technique is to offer your products in areas with heavy traffic and movement. For example, you may seek a meal canteen that provides water daily.
Inadequate supply of electricity
The current state of power in the nation does not encourage starting a pure water business in Nigeria. And as a result, you’ll need to acquire two sources of power. This adds to the operating costs since pure water production requires continuous illumination. It is prudent to utilize a decent generator that will not cause you headaches once the power company seizes the light.
Starting a clean water company in Nigeria is highly profitable. Still, it will take enthusiasm, hard work, and a large amount of beginning cash due to land, buildings, cars, machinery, and registration costs.
You can rent a location for your sachet water manufacturing company. As a result, if you are eligible for a grant, please take advantage of the chance and submit your business idea.
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- Judah Itah is an Educationist, a Certified Digital marketer, and a Copy/Content Writer. Although he loves writing and teaching Mathematics, his hobbies are reading, traveling, and music.