See The Amount of Money You can Make From Pure Water Business in a Month!

(Please note that this analysis is computed based on the cost of N100 per bag as when this manual was produced. You can calculate based on current factory prices)

For a startup and depending on what you already have like factory site, building and borehole, you may need up to Four million naira for a start up in order to get your automatic sealing machines, and other equipment needed for it to produce pure water, nylon and other materials, truck, generating set and pay for labor for about six months before it begin to yield profits. Your cost could be higher if you are also paying for rent and hiring trucks or if you are starting from building your structure and sinking a borehole.

Assuming you have only one Automatic sealing machine that produces your sachet water and one delivery van that distribute your products. One automatic machine (at 100% utilization) Capacity: 40 sachets per minute i.e. 2,400 sachets in 1hour which is equivalent to 120bags in 1 hour.

Let’s say you produce 100 bags in 1hour, and work for 5 hours in a day. I.e. one machine producing 500 bags of pure water in a day. (Note that an average sachet water factory in Nigeria produces between 500 bags to 1000 bags per machine in a day).

If you produce 500 bags in a day and a bag is sold for N100 (Lagos factory price), your sales will be 500 bags x N100 per bag = N50, 000 per day. N50, 000 x 28 working days in a month = N1,400, 000 per month. N1,400, 000 x 12 months in a year, = N16, 800,000

Profit Analysis

If you sell 500 bags per day, then you have a total of N50, 000 per day, you are producing each bag you sell at about N50 per bag, and therefore your profit per day will be:

N50X500 bags= N25,000 (Cost of production)

N50,000 – N25,000 = N25,000 (Profit per day)

N25,000 X 28 working days = N700,000 monthly profit

Less provision for monthly contingencies of about N200,000 and all other things being equal you will have a monthly profit of N500,000 (NET) per machine and per truck.

You can do this analysis for every other machine you own in the factory.