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All time Premium Package Drinking Water

Maijan,Dibrugarh,Assam PIN -786001

Promoters: Sunny Beria Raj Pallav Neog Deepjyoti Bhattacharjee Tridip Swargari 48Executive Summary
This proposed project presents an investment opportunity for establishing a bottled water plant for providing pure drinking water. The proposed product line will consist of bottles of 1.5 and 0.5 liters. In the initial phase of the project only 0.5 liters and 1.5 liters bottles will be introduced in the local market. After successful introduction of the new brand of bottled water the product line may be extended to 13 and 19 liters cans. The market for mineral water has been showing a mushroom growth trend over the last few years. The countrys market is very small on a global scale and was estimated at 45 million liters a year by the end of2007. The last three years have shown more growth and the market have been estimated to grow 87 million liters and the per capita consumption is 0.5 liter. The annual growth rate for bottled water is 40%. According to a study conducted in 2009, India registered the highest growth of 140% in 2007 amongst the countries in Asia and Middle East region. The potential markets for bottled / mineral water consist of foreign tourists and foreigners working in India, hotel industry, patients (bottle water is also used to avoid the possible consumption of contaminated water) and travelers. Moreover, the bottled / mineral water has been emerging as a daily preference of the elite class. The project can bottle 15,000 Gallons of water per day, the size of bottles will be 1.5 Lt and .5 Lt to make the water convenient and attractive to end users. The sale at 100% capacity utilization is Rs 209 Million. The project would be set up in Maijan,Dibrugarh where all the required infrastructure and amenities are available

Objectives:
To provide pure and safe drinking water. To create a brand name in the market.

Brief history
The demand for mineral water is increasing at a rapid rate, as people become more health conscious and take precautions against water borne diseases. Bottled mineral water provides easy transportability and assured water quality. Water forms an essential part of every living being. After air, water is the most important necessity for life. Water plays a number of functions for the body. It serves as the body's transportation system, it acts as a lubricant, it regulates the body temperature etc. The eulogy for water is an unending thing. In fact more than 2/3rd of the human body is made of water. The importance of water for human body can be well accessed from the fact that if the amount of water in our body is reduced by just 1-2%, we feel very thirsty. If it's reduced by 5%, our skin will shrink and we will have difficulty moving our muscles and if it's reduced by 10%, we will die. Moreover with this commodity being a human necessity it makes best sense to do business in. As a normal human being requires on an average needs 2-3 litres of water everyday and world population is more than 6 billion (growing at 2-3% annually), the business opportunity is humongous and the potential is largely untapped. These facts about water added to the growing number of cases of water borne diseases, increasing water pollution, increasing urbanization, increasing scarcity of pure and safe water etc. have made the bottled water business quite lucrative. In addition with getting pure drinking water from municipal taps in cities and towns becoming a luxury the scenario has become so lucrative in business sense that the opportunity is being misused by a number of companies especially in our country. These companies are selling plain tap water under the name of mineral water and are be-fooling consumers. The situation has got aggravated by lack of awareness among common people about mineral water and also due to lack of initiatives on part of the government both on count of setting stringent norms as well as on taking action against non-compliers. In fact one of the major factors for flourishing of the sector is the public fear that water supplied by civic bodies is impure.

Advantages over substitutes: It will be cheap and easily available.we will provide
assurance to our customers about our purity and safety norms etc.

Patent: our product will be patented under ISO 22000,and this will prove our commitment
towards our work.

STRENGTH
1. QUALITY STANDARD:Every bottle of ALLTIME is put through a rigorous Multi stage purification processes which includes micron filtration and ozonisation. It acquires 6 stages of purification processes which ensure quality water which is pure and safe for drinking purpose. Good manufacturing are the strength all the time processing in religiously monitored at every stage. 2. LARGE RANGE OF PRODUCTS:ALLTIME offers a large range of products which attracts consumer of all categories. For example: - 1 litre or 500 ml pack is useful for individual buyers, 12 litres or 20 litres is useful for organization. Therefore it attracts large number of customer. 3. MARKETING:ALLTIME is promoted by an aggressive print & TV. TV is backed by a Hoarding & point of sale material. Every interface with customer is used as an opportunity to reinforce. For example: All vehicles used for supply have been painted in light green, bears the ALLTIME logo & sport catchy baseline likes drink and drive.

4. BULK SEGMENT IS USEFUL FOR HOUSEHOLDS ALSO:Households in certain parts of the country spend a huge amount of money on fuel in order to purify the water. They are supposed to buy the impure water and then they have to spend money to purify it. For instance the water scarce south people spend large some of money to buy water and still more to purify it. The 12 litre product is hit in various cities of south.

5. THE BREAK AWAY SEAL:Keeping in mind the consumers need to recognize a genuine product that cannot be tempered with. The unique cap has been patented and cannot be duplicated. This technical strength ensures that the consumer will only get a high safe product when they will drink ALLTIME.

WEAKNESS

1. REUSE OF BOTTLE BY LOCAL SELLERS AND ILLEGAL MANUFACTURERS:Market research conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of ALLTIME. For example: - local sellers fill the bottle of ALLTIME with impure water and the bottles are purchased by illiterate customers as ALLTIME water but they buy water of low quality. In this way brand of ALLTIME gets affected.

2. FAULTS IN PRODUCTION:Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of ALLTIME. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production.

3. PRESSURE BY GOVERNMENT AUTHORITY:After insect was found in the bottles, FDA (Food & Drug Adulteration) has cancelled the production of ALLTIME. Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities.

4. NOT MEETING THE DEMAND OF THE CUSTOMER:In certain parts of south in our country big bottles of ALLTIME are in huge demand but the company is unable to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water.

OPPORTUNITY

1. FAST GROWING FIELD:The best beverage for India in the new millennium seems to be water. In recent years, the bottled drinking water market has been witnessing high decibel level of activity, with a host of new entrants. The bottled water market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by 2010. This will increase a lot of scope for bottled water market.

2. LAUNCH OF PREMIUM PACK:The company also has its premium product range. This is prepared keeping 5-star hotels and other premium customer. This pack will be sold at Rs. 20 per litre. This will give a tough competition to the EVIAN, the biggest player in the premium water range which sells its 1 litre water at a hefty of Rs.85 per litre

3.INCREASE IN PRODUCTION:ALLTIME is eyeing the Market and is in the process of increasing the production by setting 4 new plants adding to its 23plants. This will increase the production capacity of the company

THREAT

MARKET IS EYED BY THE BIG PLAYERS:The growth of the market indicates the need for the mineral water. Due to this the heavy weights are eyeing the market. Coke, Pepsi, Britannia, Nestle, Auswateris keen on raising their stakes in this market. With the cut throat competition between Coke and Pepsi, ALLTIME is not safe.

ENTERING OF NEW PLAYERS:To get some share in the market many new players are entering in the market. Among them major names are Godrej, which is launching its product AQUA-PURE and Tata-Tea is looking forward to but Himalayan, this will increase the competition. Also Britannia which is distributing EVIAN is planning to launch its own brand. There are also new entrants ATCO with BRILLIANT water, DS FOODS with CATCH are also coming. Even Hindustan lever is planning to enter into the market. This is give a tough competition to the current water brands including ALLTIME.

WATER FILTER MANUFACTURERS:ALLTIME is not only getting competition from mineral water maker but is also facing a tough competition from various water filter manufacturers such as Eureka Forbes (Aqua guard). They have been marketing there purifiers in the market which has decreased the sales of bottled water supply to homely customers.

ILLEGAL MANUFACTURERS:Company is facing a tough competition from illegal manufacturers in the rural areas. The illegal manufacturers provide water at a very cheaper rate then the branded manufacturers. There are 1000s of illegal manufacturers which are providing the water at a very cheaper rate. This is a serious problem for branded manufacturers. This companies also use the fake name of branded bottled water i.e. ALLTIME and supply their products in the market.

STRONG DISTRIBUTION CHANNEL OF THE OTHER MANUFACTURERS:Analysts feel that ALLTIMES break away seal will not at all be effective the company having strong distribution channel will only survive. This rings the warning bell for ALLTIME because among other players Kinley and Aquafina are having a strong distribution network of Coke and Pepsi. Nestle will be banking on its chocolate distribution network. Even though the ALLTIME has a strong networks but its concentration on bulk segment can lead to improper network. For example: - A chemist who is selling the 1 litre pack may not sell the 20 litre pack. This could disturb the network.

Marketing Strategy/Marketing Mix


Branding and marketing of bottled water is as essential as water for the survival of the human body. The traditional marketing tools include site advertisement, TV and print media advertising and brochures. This study allocates 10% of the revenue for advertising and promotional purposes. Apart from the traditional marketing tools, this study suggests to

focus more on other marketing magnets that include interactive marketing, interactive marketing may include educating the general public about the importance of water and its daily consumption requirements for human body through the participation in seminars and in general public gatherings (e.g. College and University gatherings). One of the marketing options is to sponsor public events like cricket matches or hospital campaigns, distributing free brochures about water and its daily consumption, water requirements in different age brackets. The interactive marketing may be designed through seminars and workshops about the daily human consumption requirements and diseases originating from the lack of pure water. Overall marketing strategy may change with the change of target market. A market research study is recommended to design the different dynamics of marketing before launching the new brand.

Budget for Marketing T.V Advertisement Site Advertisement Newspaper Mazagines Point of Sales Marketing 40% 10% 38% 4% 8%

Organizational-Chart

BOD

CEO SALES MARKETING ACCOUNTS H.R I.T

MIDDLE LEVEL MANAGERS LOWER LEVEL MANAGER

Manpower Planning
The following requirement of staff along with their levels and monthly salary is foreseen for this project. Designation CEO Admin & Accounts Manager Area Sales Manager Sales Supervisor Sales Representatives Marketing Manager Marketing Officer Filler Loader No. Of Staff 1 1 1 2 25 1 2 2 2 Monthly Salary 50000 40000 40000 30000 10000 40000 15000 8000 6000

Packing Supervisor Plant Helper Other Workers Watchman

2 5 10 2

10000 6000 3000 2000

Projected SALES
3 Shift per day 6 hrs Per Shift will produce 5000 bottles
Plant Capacity liters per day 15,000 Bottles Production per year (liters) 18,711,000 Ratio of 1.5 liter and 0.5 liter bottle 80:20 Production of 1.5 liter bottle 9,979,200 Production of 0.5 liter bottle 7,484,400 Total annual production 17,463,600 Sale price of 1.5 liter bottle (Rs.) 15 Sale price of 0.5 liter bottle (Rs.) 8 Capacity utilization in first yr 60% Sales price growth rates 10% Production capacity utilization growth rate 10% Maximum Capacity utilization 95% Sales 100% capacity 209,563,200

Plant Layout
The first step for setting up a water purification plant is the analysis of source of water. After the chemical analysis, the specifications of the purification plant are set. In the purification plant, source water is stored in the feed water tank, passes through the sand

filter for preliminary water filtration. Water then passes through the dosing pump-I where chlorine is added to kill the germs in the water. After the chlorination, water passes through carbon filter. It helps in the maintenance of proper odor and taste of the water. It also removes chlorine from water. Water is then passes from dosing pump-II, where Sodium Meta Bisulphate is added. It helps in dechlorination of water. Water is filtered next and passes through dosing pump-III, where anti scallant is added. It prevents scaling of membrane from calcium, magnesium and biological growth. Water then passes through reverse osmosis module. This stage of the process makes water clear from all the contaminations and minute particles. Water then passes through dosing pump-IV, where minerals are added for taste development. After this stage, water undergoes Ultra Violet treatment to avoid any contamination from bacteria and other micro organisms. Water then passes through automatic washing, filling and capping plant. Here water is filled into bottles. After filling bottles are taken into the warehouse or shipped to the retailers. The complete process flow diagram is as under.

Diagramatic Representation of Plant Layout

PLANT LOCATION

The location of our plant will be at Maijan,because it is at some distance from Dibrugarh Town.Moreover easy to set up industry there.We can install all our equipments there and start our above mention project.The plant needs near about 1 bigha land,which is available there and transportation facilities are also tidy .

MATERIALS
The raw material is water which will be available to us through deep boring .The ground water will be collected in a tank with the help of pumps and then the further procedings for purifications will be done

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