Every business or person who is going to start the business of packaged mineral drinking water, is thinking how much this business is profitable, what is the value of water bottle business in India? If you are also thinking about Is a packaged mineral drinking water business profitable or not? then the answer is “Yes”, if done in a proper, right way. In fact, it is applicable to all businesses.
When, India & the world is hit by Corona. Due to which, this business too went through a great downfall. But the value of pure and mineralized water exist at that time too. However, Water, being an essential commodity, was saved. However, it will have further challenges now, supported by an equally good opportunity. Health & hygiene norms will go through a major overhaul.
We saw a number of failures in this industry are due to misguided information published at many places. The profit margin and profit calculations should be for a stipulated period. It can’t be an ad hoc “Per Bottle Cost”. We have written a special article on this for calculation of the Profit Margin.
Why People is not continuing mineral drinking water business in Second year?
Talking specifically about Packaged Drinking Water Business, you see something different. In our observation, 50% of the people who start this business, do not continue in the second year, and on an average just 40 % remain in this even after 5 years.
This is mainly due to non professional, non-business kind of approach to this. But now the picture is changing. More organized mind set kind of entrepreneurs are venturing into this. That’s a great sign for the water industry which are committing to server people with pure and fresh water.
With volumes, proper marketing plan and marketing infrastructure handsome profit can be earned in this industry. There is lot of competition in this industry every one wants acquire larger market share. So everyone dumps their products at cheap prices in the market. Its very risky business but if one is having experience in this industry than its profitable otherwise its loss making without experience and market research. Technical knowledge of bottle Jar & bottle filling machine is very important to survive in this industry.