Startup Featured

How to Start a Mineral Water Business | Know-how

By Shreya Durgan

The mineral water industry in India is on the rise, with the market valued at USD 3.84 billion in 2024 and expected to grow at a rate of 14.7% annually through 2030. This booming industry offers a fantastic chance for new entrepreneurs to enter a profitable business. If you’re thinking about starting a mineral water business, it’s important to understand the key differences between mineral water and alkaline water. Let’s explore these differences and see how you can make the most of this opportunity.

Mineral Water Plant Vs Alkaline Water Plant: What’s the Difference?

When comparing mineral water and alkaline water, it’s easy to get confused. Let’s clear that up:

Aspect	Mineral Water	Alkaline Water
Definition	Water that naturally contains minerals like calcium, magnesium, and potassium.	Water that has been ionized to increase its pH level above 8.5, often containing added minerals.
Source	Natural springs or underground reservoirs.	Purified water with added electrolytes or natural sources with high pH levels.
pH Level	Typically between 7.0 to 7.8 (neutral to slightly alkaline).	Typically above 8.5, making it more alkaline.
Production Process	Involves filtration and sometimes carbonation; less complex.	Involves ionization, filtration, and sometimes reverse osmosis; more complex.
Health Benefits	Provides essential minerals that support bone health, heart function, and hydration.	Believed to neutralize acid in the body, improve hydration, and provide antioxidants.
Market Demand	High demand for general hydration; well-established market.	Growing demand due to increased health consciousness; emerging market with rapid growth.
Market Potential	Stable with consistent growth; caters to a broad audience.	High potential in health-conscious markets; premium pricing.
Target Audience	General consumers looking for healthy hydration.	Health-conscious consumers, athletes, and wellness enthusiasts.
Price Range	Generally lower, around ₹20-40 per liter.	Generally higher, can be ₹80-150 or more per liter.
Packaging	Commonly available in PET bottles; eco-friendly options growing.	Often marketed in premium packaging; glass bottles or BPA-free options.
Environmental Impact	Moderate, depending on packaging and source sustainability.	Similar to mineral water, but premium packaging can add to environmental concerns.

Understanding these differences will help you decide whether to focus on the well-known market of mineral water or venture into the fast-growing niche of alkaline water. Both offer great opportunities, so choose the one that aligns best with your business goals.

Steps to Start a Mineral Water Business/Alkaline Water Business

Step 1: Conduct Market Research

Begin by analyzing the market demand for your product and estimating the potential investment and profit in the water business.

Water is an essential commodity, making this a venture with low risk and high potential for success.

With increasing health awareness, the demand for quality drinking water is set to grow even further in the coming years.

To gain a deeper understanding of the industry, consider visiting an existing mineral water plant to observe their operations, sourcing methods, and sales strategies.

This hands-on research will provide valuable insights to help you make informed decisions as you embark on your own water business journey.

Step 2: Identify and Secure Your Water Source

Finding a reliable water source is a critical step in starting your water business.

For a mineral water operation, your source should ideally be a natural spring or a mountain aquifer known for its purity and mineral content.

You’ll need to establish your processing unit close to this source to ensure efficient operations and minimize transportation costs.

A facility of around 1000 sq. ft is typically required: half of this space will be used for storing water and materials such as chemicals and packaging, while the other half will accommodate your purification equipment.

Securing a high-quality water source not only ensures the success of your business but also helps in maintaining the integrity and quality of your product.

Step 3: Register Your Business

Once you’ve decided on the type of water business you want to establish, the next step is to officially register your company.

Choose a name for your business and proceed with Private Limited Company Registration Online to ensure a legal and professional foundation.

Here’s a checklist of documents required for company registration:

Photos of Directors
Aadhar Card
PAN Card
Utility Bill
Address Proof
Identity Proof
Minimum of Two Directors (One must be an Indian resident)
Minimum of Two Shareholders

After registering your company, you can move forward with setting up your operations and other business processes.

Registration is a crucial step that legitimizes your business and allows you to operate within the legal framework.

Step 4: Acquire All Necessary Licenses

To operate your water business legally and avoid potential penalties or legal issues, you need to obtain the required licenses and certifications. Here are the essential licenses for a mineral water business:

ISI Certificate from BIS (Bureau of Indian Standards): Ensures that your water meets national safety and quality standards.
GST Registration: Required for tax purposes and to comply with Goods and Services Tax regulations.
FSSAI Certificate: Issued by the Food Safety and Standards Authority of India, confirming that your water is safe for consumption.
Pollution Control Certificate: Ensures that your operations comply with environmental regulations and do not harm the environment.
Water Test Report from a Certified Laboratory: Validates the quality and safety of the water from your source.
Pest Control Certificate: Ensures that your facility is free from pests, maintaining hygiene and safety standards.

Securing these licenses is crucial for ensuring that your business operates smoothly and complies with all regulatory requirements.

Step 5: Gathering Raw Materials and Machinery

To start your mineral or alkaline water plant, you’ll need to gather the necessary raw materials and machinery. Here’s a breakdown of what you’ll need:

Raw Material

Reagents
Chemical (Chloride, Sodium, Magnesium and Calcium)

Note: The chemicals are decided after the water test report of the source water.

Bottles
Cartoons
PET Preform (Starts from Rs.3 per piece / 108 per Kg)

Ensuring you have the right quality and quantity of these raw materials is crucial for maintaining the production flow and meeting the demand in your target market. Properly sourced materials also help in maintaining the quality and safety of your bottled water.

Machinery

MACHINE	PRICE
Storage Tank	Rs.7,000 - Rs.10,000
Treatment Tank	Rs.90,000 - Rs. 3,00,000
RO System	Rs.70,000 - Rs.1,50,000
Sand Filter	Rs. 45,000
Activated Carbon Filter	Rs.25,000 - Rs. 70,000
Chlorination Tanks	Rs. 10,000 - Rs.50,000
Micron Filter	Rs.4000 - Rs.20,000
Ozone Generator	Rs.20,000 - Rs. 70,000
Water Dispenser and sterilizer	Rs. 10,000
UV Disinfection System	Rs. 50,000 - Rs. 80,000
Electronic doser for alum and chlorine	Rs. 20,000 - Rs. 80,000
Water Filling Machine	Rs.2,00,000 - Rs.15,00,000
Bottle Wrapping Machine	Rs.1,50,000 - Rs. 3,00,000
PET bottle blower machine	Rs.1,50,000 - Rs.4,00,000

You can source all the products from India's best wholesaling website: Indiamart.

Step 6: Purifying and Packaging Natural Mineral Water

Purifying and packaging natural mineral water is a critical step in ensuring that the water is safe, clean, and ready for consumption. Below are the detailed steps to guide you through this process:

Collect the Water: Start by collecting the raw water from your source, whether it's a natural spring, well, or other reservoir, into a storage tank.
Settle and Remove Impurities: Allow the water to sit in the storage tank for an hour or two. This settling process helps in removing large particles and sediment that may be present.
Chlorination: Introduce chlorine gas into the chlorination tank. This step is an early disinfection process that kills bacteria and other harmful microorganisms.
Sand Filtration: The water is then passed through sand filters, which remove any remaining insoluble impurities. This ensures the water is clear of particulate matter.
Carbon Filtration: Next, the water passes through carbon filters. This step removes any residual chlorine, as well as any color and odor, ensuring the water is clean and neutral in taste.
UV Disinfection and Microfiltration: The water is then treated with ultraviolet (UV) light and passed through microfilters for final disinfection. This process eliminates any remaining microorganisms and ensures the water is safe for drinking.
Bottling: After purification, the water is transferred to the bottling plant. Here, the filling machine fills the purified water into bottles of various sizes.
Ozonation and Sealing: The bottles are then sealed using an ozone generator, which further disinfects the water and the bottle, ensuring long shelf life.
Labeling and Packaging: In the final step, the bottles are labeled and packaged, making them ready for distribution and sale.

Note: If you source your water from exceptionally pure sources, such as the Himalayan mountains, you may be able to skip some of these purification steps. However, this should only be done after consulting with an expert and obtaining approval from the Bureau of Indian Standards (BIS).

Step 7: Pricing Your Product

In India, the price of a natural mineral water bottle typically ranges from Rs. 20 to Rs. 60 per liter.

When setting your price, it’s essential to calculate all the expenses involved in producing and packaging the water, including the cost of raw materials, machinery, labor, and distribution.

Once you have a clear understanding of your total production costs, you can set a competitive price that ensures a good profit margin while remaining attractive to your target market.

Step 8: Marketing and Selling Your Water

Water is a basic necessity, so you don’t need elaborate marketing strategies to sell it. However, positioning your brand correctly can make a significant difference in your success. Here’s how:

Target the Upper Class: Celebrities, athletes, and health-conscious individuals are often very particular about the water they drink. They prefer water rich in minerals to help maintain their health and physique. Focus your marketing efforts on these groups, especially if you’re selling alkaline water, to tap into a lucrative market segment. Develop a compelling brand story that appeals to their lifestyle and health goals, and create an impressive marketing pitch to convince them to choose your brand.
Supply to High-Traffic Areas: Consider supplying your water to places with high foot traffic, such as railway stations, bus stops, and airports. These locations have a constant flow of travelers who need water on the go, providing a steady demand for your product.

Strategically setting your price and targeting the right customers can help your water business achieve significant success, whether you’re focusing on mineral or alkaline water.

Investment Required for Starting a Mineral Water Business

Starting a Mineral or Alkaline Water Business in a 1000 sq. ft area can require an investment ranging from Rs. 8,00,000 to Rs. 1,00,00,000.

The exact amount will depend on the scale of your operations and the machinery you choose to use.

To fund your business, consider options such as bank loans, angel investors, or crowdfunding platforms.

You could also explore getting financial support from friends, family, or relatives to help you with the initial capital needed to kickstart your venture.

Conclusion

In conclusion, while there are differences between alkaline and mineral water, setting up either type of plant involves similar processes. Now that you have a clear understanding of both, you're well-equipped to embark on a profitable and successful venture in the water industry.

If you're looking for more guidance on how to start your mineral water business, feel free to reach out to our experts at www.starteazy.in. We're here to help you every step of the way.