Introduction
This business idea is for production of Distilled water to ensure its purity. The business idea is premised on the production of 200 liters per day which translates into 44,400 liters per year. The revenue potential is estimated at US$ 81,120 per year. The total Investment can cost about US $ 27,200.
Production process
Tap water is collected and heated in a glass flask to the boiling point and thus vaporizes (becomes steam), While other substances remain in solid state, in boiler (glass flask). Steam is then directed into cooler (condenser tube) containing cold water, where it cools down and returns to liquid water, purified of additional substances found in it before distillation
Equipments and tools required in us$ Product cost and Price structure in us$
| Item | Unit | Qty | @ | Total |
|---|---|---|---|---|
| Water distiller | No. | 1 | 10,000 | 10,000 |
| Delivery van | No. | 1 | 6,000 | 6,000 |
| TC of Machinery | 16,000 |
Raw materials
Water Project capacity
The project has a capacity of 100-240 gallons per day (24hrs)
Production and operating cost in us$ Direct Materials, Supplies and Costs
| Cost Item | Units | @/ day | Qty/ day | Prod. Cost / day | Prod. Cost/ month | Prod. Cost/ year |
|---|---|---|---|---|---|---|
| Water | Ltrs | 0.001 | 1 | 0.001 | 0.026 | 0.312 |
| Sub-total | 0.026 | 0.312 |
General costs (Overheads)
| Utilities (power) | 50 | 600 |
|---|---|---|
| Salaries | 300 | 3600 |
| Rent | 150 | 1800 |
| Fuel | 100 | 1200 |
| Depreciation (Assets write off) Expenses | 333 | 4,000 |
| Sub-total | 933.33 | 11,200 |
| Total Operating costs | 933 | 11,200 |
- 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 | @ | Prod./ yr | UPx | TR ($) |
|---|---|---|---|---|---|---|
| Distilled water | 1,000 | 312,000 | 0.04 | 11,200 | 0.26 | 81,120 |
Profitability analysis in us $
| Profitability item | per day | per month | per year |
|---|---|---|---|
| Revenue | |||
| Distilled water | 200 | 5,200 | 81,120 |
| Less Prod & Operating Costs | 36 | 933 | 11,200 |
| Profit | 164 | 4,267 | 69,920 |
Demand
There is high demand for distilled water as it is purified for human consumption, the distilled water can be supplied to supermarkets, retailers, wholesalers, hospitals and individual organizations.
Equipment suppliers
Small Equipments and machinery can be obtained from the local market.
Government incentive
Government is encouraging small scale businesses and income generating activities to curb poverty.
