Water is life, and clean drinking water is essential for everyone. With increasing concerns about water pollution, the demand for purified water is growing rapidly. In India, the RO water industry is valued at over ₹16,000 crore and is expected to grow at a CAGR of 13% in the coming years. After all, water is very important in human life, as it helps a person’s body to stay disease-free and functional. Therefore, the demand for clean water in the market is very high, and this makes the RO water plant business a lucrative opportunity for aspiring entrepreneurs. Currently, many companies are making a lot of profit by selling purified water. However, this business has huge potential and steady demand. So, you can also become an entrepreneur by doing a water business and making a lot of profit.
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Market Scope for RO Water Business
The demand for RO-purified water is increasing day by day in homes, offices, hospitals, restaurants, and factories. Because, due to concerns over groundwater contamination, industrial pollution, and increasing health awareness, people are switching to purified water instead of relying on tap water. Furthermore, the global RO system market size was valued at US$ 33.11 billion in 2023, and the market is projected to reach US$ 55.17 billion by 2031, at a CAGR of 7.27%. Moreover, urbanization and population growth are making this business highly profitable and scalable. Not only that, RO water is not only sold in 20-liter jars; 200 ml, 500 ml, 1 liter, and 2 liter packaged drinking water bottles are also widely consumed. Due to this, entrepreneurs who step into this industry can earn income in multiple ways.
Select the Water Plant Business location
The location of your RO water plant plays a crucial role in the success of your business. The space requirement depends on the production capacity. Generally, for a small-scale plant, you will need at least 1,000 to 1,500 square feet, while for a large-scale unit, around 5,000 square feet is ideal. Since this is a water business, the plant should be located near a clean water supply. Therefore, you can use municipal supply or groundwater. Also, the location should have easy transportation facilities to help with your water supply. Importantly, to set up this plant, a location with a low TDS level has to be selected.
License for Water Plant Business
To run this business, one has to apply for a license at the very beginning. For this business, you need to get an FSSAI license to open your own water plant, without this license you cannot set up an Ro water plant. After this, you need to get Pollution Control Board approval, BIS certificate, trade license and GST registration, along with this you also need to get an ISI Mark certificate to supply mineral water in India. Along with this, you can open a current account in the name of your business to make easy money transactions. So, you don’t have to face any kind of hassle.
Essential Materials for RO Water Plant
To start an RO water plant business, you need several essential items to ensure smooth operations and high-quality water production. For this, you need transparent PET bottles, bottle caps, labels, and shrink wraps for branding and distribution. Also, you need chemicals like anti-scalants and disinfectants to maintain membrane performance and prevent bacterial growth. Next, you need a testing kit or laboratory equipment to regularly check the pH, TDS, and microbial content of the water. Finally, you need packing and sealing materials like cardboard boxes and plastic boxes to safely transport the bottled water.
Machines for Water Plant Business
To run an RO water plant, you need several machines, the RO filtration unit is the heart of the plant for filtering water. Along with this, there are water storage tanks, high pressure pumps, an ozonation & UV purification system, an automatic bottle filling & capping machine, a labeling & shrink wrapping machine and a chiller to cool the water. All these machines can be purchased from your local industrial suppliers or online platforms like Indiamart, TradeIndia and Alibaba. If you are planning to supply water in bulk, you will also need a jar washing, filling and sealing machine for 20 liter cans. Therefore, investing in high-quality machines ensures consistent operations and compliance with safety standards.
Total Cost for Water Plant Business
The investment required to start an RO water plant business depends on the size and production capacity of the plant. For a small-scale plant with a capacity of 1000 litres per hour (LPH), the investment may range from ₹5 to ₹10 lakh. A medium-scale plant with a capacity of 2000 to 5000 LPH, an investment may range from ₹15 to ₹25 lakh, including automatic bottling systems, storage tanks and a proper distribution network. For a large-scale plant with a capacity of 10,000 LPH or more, the investment may range from ₹50 lakh to ₹1 crore, which includes high-capacity purification units, packaging machinery, transportation and marketing. So, you can also opt for bank loans or government grants for financial assistance.
RO Water Production Process
Now, let’s take a look at the RO water production process, which starts with pre-treatment, where the raw water passes through sand and carbon filters to remove large particles and chlorine. Next, in the reverse osmosis (RO) filtration stage, the water is pushed through semi-permeable membranes to remove dissolved impurities. After that, the mineralization process recovers essential minerals like calcium and magnesium to improve taste and quality. To ensure complete disinfection, UV and ozone treatment are used, which kills bacteria and viruses. Finally, the purified water is stored in hygienic tanks and packaged in bottles or cans for distribution. To maintain safety and compliance, regular quality testing is essential, so frequent testing ensures BIS certification compliance and builds customer confidence, making the RO water business reliable and profitable.
Marketing and Sales
To grow your RO water business, you need strong marketing strategies. Since most people today rely heavily on bottled water, you can sell bottled water or deliver this water in jars to people’s homes. For this, you need to get orders from people who order water jars from you every day and then deliver your water to their homes through transport. You can also market this offline, for which you can make some banners to distribute to people or advertise in magazines. Apart from this, you can also do it online, for this you can also use Facebook or Google, if you do online marketing, you can bring your business in front of more people, and more people will come to know about your business, due to which they will also buy your water, and your business will continue to grow.
Profit from Water Plant Business
The profit in an RO water plant business largely depends on production capacity and market reach. On average, the cost of producing a 1-litre bottle is around ₹2 to 3, while the selling price ranges between ₹10 to 15, resulting in a profit of ₹7 to10 per bottle. If you sell 1000 bottles daily, your daily revenue can reach ₹10,000, translating to monthly earnings of ₹3 to 5 lakhs, depending on sales volume and distribution channels. Additionally, bulk water supply in 20-litre cans is highly profitable, with a production cost of ₹8 to 10 per can and a selling price of ₹30 to 40, making it an excellent revenue stream for the business.
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