BUSINESS IDEA FOR DISTILLATION OF WATER

 

This company concept aims to produce distilled water in order to guarantee its purity. The business plan is based on the assumption that 200 liters are produced each day, or 44,400 liters year. The potential income is thought to be $33,300 annually. The overall investment may cost around 7,729 US dollars.

Production Process

While other components in the boiler (glass flask) remain in their solid state, tap water is gathered and heated to the boiling point where it vaporizes (becomes steam). Then, the steam is transported into a cooler (condenser tube) filled with cold water, where it cools and transforms back into liquid water, having been cleaned of any extra impurities before distillation.

Market Analysis

Due to its high level of purification, distilled water is in high demand. It can be provided to supermarkets, retailers, wholesalers, hospitals, schools, and other private institutions.

Equipment and Tools Required in Us$

Item	Unit	Qty	Unit Cost	Total
Water distiller	No	1	10,000	10,000
Delivery van	No	1	5,000	5,000
Total cost of Machinery				15,000

 

Raw materials

 Water

Project Capacity

The project has a capacity of 100-240 gallons per day (24hrs)

Production And Operating Cost In Us$

Cost Item	units	Units cost/day	Qty/day	Prod. cost/day	Prod cost/month	Prod. Cost/year
water	Liters	0.001	1	0.001	0.02	6
Sub-total					0.02	6

 

General costs (Overheads)	Prod. Cost/ month	Prod. Cost/ year
Utilities (power)	50	600
Salaries	300	3,600
Rent	150	1,800
Fuel	100	1,200
Depreciation (Assets write off) Expenses	313	3,750
Sub-total	913	10,950
Total Operating cost	913	10,956

The plant is profiled to take a period of 4 years in production Depreciation rate is 25% per year Production assumed to take 8 hour per day

Item	Qty/ day	Qty /yr	Unit cost	Prod./ yr	Unit price	Total Revenue ($)
Distilled water	1,000	312,000	0.001	237	0.2	62,400

 

Profitability Analysis in Us $

Profitability item	per day	per month	per year
Revenue
Distilled water	200	5,200	62,400
Less Prod & Operating Costs	35	913	10,956
Profit	165	4,287	51,444

 

Source of Supply of Equipment and Raw materials

Equipment’s and machinery can be imported from Japan and China.

Government Incentive

Government is encouraging small scale businesses and income generating activities to curb poverty.

 

©NB: apply all of these according to your environment