At once, you can think of living without food but you cannot think of living without water. Safe water for consumption is what we all need and that is our right as well. But the question here is whether everyone is getting safe and contamination-free water? The answer to this question is a big no and the reason behind this is that the supply of water does not meet the standards set for safe water. This is why most of us rely on RO water purifier to meet our demand for pure and contamination-free water.
While on the other hand, many offices, institutions, and companies need to purchase safe water for their employees from the industrial RO water plant owners. Most probably, that is why the popularity of this business is increasing day by day, and we must say that there is no harm in investing in such a business where risk is not that high.
In this post, we are going to talk about what an industrial RO water plant is and how much is the expected budget to start this business along with a rough idea of the profit that you’ll receive.
So, let us start with the basics and see what the industrial RO water plant business is.
What is Industrial RO Water Plant Business?
I don’t think that there should be any confusion when we talk about industrial RO water plant, but still, we’ll make things clear to you. Just like we have RO water purifiers in our home to remove impurities from the supply water, similarly, an industrial RO water plant is also used to filter supply water and make it safe for consumption. The only difference lies between both is that domestic RO purifiers filter water at a very much slower rate than industrial ROs. For example, on average, it takes around 2-4 hours for a RO to fill its tank of around 10 liters, while on the other hand, when we talk about industrial RO, it can produce up to 5000 liters of filtered water every year. We know that the difference is huge and that’s why such RO plants are used to meet the demand for a large water supply.
In this business, and industrial RO water purifier system is installed along with several other types of equipment produce high quality filtered water with no dissolved and suspended impurities. The filtered water is then supplied to retailers, offices, companies, and institutions. Now, let us take a rough idea of how much budget will be required to set up this business.
Budget Required to Set Up RO Water Plant Business
Setting up a RO water plant will require an RO system, chlorination tank, alum treatment tank, sand and carbon filter, raw and purified water tanks, UV disinfection system, and several other pieces of equipment.
It is always advised to buy a RO plant from a reliable and experienced brand like Aqua Easy. So, let us have a look at how much money will be required for setting up a RO plant business.
|ITEMS||PRICE (in Lakhs)|
|RO Plant (Aqua Easy)||1.65|
|UV Disinfection System||0.20|
|Alum Treatment Tank||0.35|
|Sand and Carbon Filter||0.20|
|Raw Water Tank||0.20|
|Purified Water Tank||0.20|
Note- These prices are only indicative and there is no guarantee that you would be able to set up a RO plant exactly at the mentioned budget.
So, considering the above table, we could say that a basic RO water plant can be established within 5 lakhs, but the prices can vary depending upon the size of plant you want to establish, your requirements, and the companies you chose to buy these items. For example, along with all this, if you want to set up an automatic bottling plant as well, then the budget of setting up a RO water plant could even rise to 15-17 lakhs, while the amount can go higher if you want to get a chiller installed as well.
Profit Margin in Industrial RO Water Plant Business
There is no shame in getting the idea of the profit margin before setting up any business. Now, if you are looking to get a rough idea of how much profit you can make with a small scale RO water plant business, then we must say that the approximate percentage that would come around will be 25% to 30%. You have already got a rough idea of the budget required to set up a basic small scale RO business and we hope that you can now make a decision whether this business will be suitable for you not.
If you have already established this business and are trying to find out the profit margin, then first of all you need to see how many bottles of water you are making every day and then calculate daily sales by multiplying the amount of each bottle by the total number of bottles.
For example, if you are preparing 500 jars of 20 liters daily and selling each at 40 Rupees then your daily sales would be Rs-20000 and similarly, calculate your yearly sales. Once this is done, deduct all the expenses including wages of workers, maintenance, electricity cost, rent (if you don’t own the place), and all other expenses you have made for your RO plant. The balance will be your profit and you can then calculate it in percentage.
So, we hope that it would have given you an idea of why you should start an industrial RO plant business and what will be its requirement. Happy hunting!