Is RO Plant business profitable?
People nowadays do not choose to drink ordinary water or tap water, which is widely utilized in India. People are becoming more aware of the benefits of mineral and purified water, particularly water filtered by a reverse osmosis system. With so many health-conscious individuals out there, beginning a RO water business would be a wise move to make.
But, Is RO Plant business really profitable?
Profit/Margin calculation for a Commercial RO Plant
Profit is an important component in any firm. Every person who is intending to establish a business, should first consider the profit.
The annual profit of the RO Water Plant business
Let us assume,8000 bottles are produced daily. In other words, the annual production will be 8000 X 365 = 2,92,0000 bottles.
No. of containers, assuming each crate contains 12 bottles - 2920000/12 = 24333 crates each year.
The pricing of one crate will be around Rs 80 per crate.
Total revenue = Rs 1 Crore 94 lakhs (80 x 24333).
(Total profit equals turnover minus manufacturing costs)
We must now compute the production cost for 24333 crates. The entire cost of manufacturing will include personnel salaries, raw material charges, power use, laboratory expenses, and other costs.
The monthly cost of producing 24333 cartons of bottled drinking water will be roughly 12 lakhs. As a result, the annual manufacturing cost will be 1 crore 44 lakhs.
The total profit is thus 1 crore 94 lakhs - 1 crore 44 lakhs = 50 lakhs (Annually)
What are the probable profitability influencing factors?
· Marketing
To attract more attention for your business or mineral water, your marketing initiatives should be strong and focused.
· Potential Customers
Local shops: These are the stores that are closest to you and are easily accessible. You might ask them to sell your RO Plants, in order to demonstrate the quality of your work.
Retailers: You will always find mineral water bottles in retail stores; they stock them in large quantities and of many brands; with a clever technique, you can convince them to sell your water as well.
Supermarkets: Supermarkets are a type of target audience that will allow you to place large orders, for a longer length of time. However, in the case of RO or mineral water, mass orders would not be placed unless the mineral water had been tasted, and loved by customers.
Online Retail Stores: Because digitalization is the new era for businesses, you may offer your ROwater and services on multiple online stores, reaching an audience that is beyond your reach.
· Personnel Required
Only competent people are required for the RO or Water Purifier Company, because unskilled staff may slow down the production process. The second reason is that the machinery are expensive, therefore any anomalies may result in a loss.
• The number of trained people necessary to set up a medium-scale based RO or Water Purifier manufacturing firm, would be about 2 to 3. However, the number might vary based on the type of equipment.
• On the other hand, the labour required for a large-scale RO or Water Purifier manufacturing firm, would be 5 to 7 people at most, depending on the machinery you choose for your business.
Manufacturers of High quality RO Plants in India
Netsol Water is a prominent and top-rated Commercial & Industrial RO Plant Manufacturer in India. By industry leaders and start-ups, we are one of the best-rated commercial RO plant/Industrial RO Plant consultants, manufacturers, and suppliers.
