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Pure Water Business in Nigeria: How to Start, Cost & Profitability

  • October 16, 2022

If you’re wondering what long-lasting profitable daily income business to start in Nigeria, pure water sales and production are definitely worth trying.

Everybody needs water to survive, therefore whether as a manufacturer, wholesaler, or retailer, you can count on the pure water business as one that will make you a substantial amount of money (double your investment) in the shortest time.

This business keeps getting more and more newcomers every day, and that is because if you start today, surely you’ll start making money today. Until the availability of clean water supply by the government, there will still be high demand for pure water in Nigeria, as it is the cheapest clean water you can get anywhere in the country.

That means regardless of your location, you can start a pure water business in Nigeria and make a lot of money. So, if you’re looking to start, keep reading.

In this post, you’ll discover not only how to start a pure water business in Nigeria, but also the cost of starting, the profit to expect, the challenges involved and how to overcome them, and also how to maximize your profits.

Without further ado, let’s get started!

Pure Water Business in Nigeria

The pure water business in Nigeria is a very lucrative one to start. However, while talking about the pure water business, there are multiple different ways you can start it in Nigeria.

Firstly, you can start as a pure water manufacturer in Nigeria where you deal with the production, packaging, and sales of pure water to wholesalers and retailers. This type is capital-intensive, and requires some expertise, although it is the most profitable.

Secondly, you can start as a pure water wholesaler. This involves the purchase of pure water in dozens of bags from manufacturers and reselling at wholesale prices to retailers. This type works well in rural areas, and in areas where there is frequent traffic (go slow or hold up).

The third type of pure water business in Nigeria is the retailing of sachet water. This involves the sale of pure water in pieces to the final consumers. This is popular among provision stores, and also hawkers.

All the types of pure water business in Nigeria are profitable and are good sources of daily income, although the cost of starting and profits vary greatly.

Related: How to Start a Foodstuff Business in Nigeria

How Much Do You Need to Start a Pure Water Business in Nigeria

Since there are different ways you can approach the business, a lot of people looking to start usually ask – what is the cost of starting a pure water business in Nigeria?

The cost of starting a pure water factory or pure water manufacturing company in Nigeria ranges from 5 million to 50 million Naira. The cost of starting a pure water wholesale business in Nigeria is at least 50,000 Naira, and with 1,000 Naira or less, you can start a pure water retailing/hawking business in Nigeria.

Pure water factory business is the most expensive because you’ll need to account for the cost of production, packaging, and sales equipment, although it makes the most money.

See Also: 30 Lucrative Businesses to Start With 200K in Nigeria

How Profitable is Pure Water Business in Nigeria

Another question that runs through your mind while looking to start this business is – Is pure water business profitable in Nigeria?

Yes, it is! However, the profitability of the business depends on the type you go with.

Pure water manufacturers make the most money from this business over wholesalers and retailers. However, location is one great factor that may affect manufacturer profitability. If you started in an area where there’s a scarcity or lack of water, the cost of sourcing water could be overwhelming, and also you’ll need more chemicals to purify the water than manufacturers living in an area where water is always available even during the dry season.

Overall, the profit margin of pure water business in Nigeria ranges from 50% to 150% ROI. Keep in mind that the more the sales made, the more your profits.

How to Start a Pure Water Business in Nigeria

Pure water business in Nigeria

Starting a pure water wholesale or retailing business in Nigeria is very easy, as all you need is a shop, and the capital to start, then buy pure water and resell.

However, to start pure water production in Nigeria, it takes a lot more than that. That is why this section is mainly focused on how to start a pure water factory business in Nigeria.

1. Carry Out a Thorough Market Research

Just like every other business, before starting about water business, you need to first do some research and get to understand the business better, and how it works specifically in your area (where you want to start it).

To do this it is better you find and meet with a pure water manufacturer or top-level employee in a pure water factory such as the manager. Create a business relationship, and make your findings on how to operate the business.

Some of the things to ask include but are not limited to:

  • Cost of starting
  • How profitable it is in your area
  • Does the business move fast in your area?
  • What are the challenges
  • Equipment needed, best types, and where to buy them
  • Legal laws guiding the business
  • What registrations are required
  • Are there associations of pure water manufacturers in your area?

Related: How to Start a Successful Transportation Business in Nigeria

2. Draft a Detailed Business Plan

After completing the first step, based on your result, you need to come up with a business plan that will serve as a road map to the success of your business.

In your plan, you need to outline how you want to operate your business, your financial projection, marketing plan, team management plan, production rate, and all other things that will lead to effective business operations.

While drafting your plan, ensure to keep it as realistic as possible, and also make it strategic, so as to beat your competitors.

3. Arrange for a Startup Fund

After your plan is ready and you now know how you want to run your business, the next thing is to get the capital required to start.

Since the pure water business in Nigeria is capital-intensive, you must be prepared to put a lot of money on the line right from the start. If you have enough, you can use your personal savings to start. If not you can source your capital through loans from friends and family or banks. You can also engage in a business partnership or find a venture capitalist to work with.

4. Get Your Business Registered

A lot of businesses can legally operate in Nigeria without any registration whatsoever, but not like operating a pure water factory. Since you’re producing consumable items, you should know that you’ll be guided by some legal laws and governmental institutions.

If your market research is well performed, you should know all the necessary registration to do. Although, your business must be approved by NAFDAC and obtain a license. Other necessary registration includes CAC, FIRS, and/or SIR.

More so, if there’s an association of pure water manufacturers in your area, be sure to join, so not to be disturbed after starting.

5. Find a Suitable Location

Getting a location and setting up your factory is just more than you may have thought of, as there are lots of factors to be considered.

You can either rent a warehouse to start or build your own factory from scratch. Either way, you must make sure that there is good electricity in the area, and also the ease of running the business in that area is encouraging.

Check Out: How to Start a Laundry Business in Nigeria

6. Get All the Equipment and Materials Needed

To produce a sachet of pure water, you need a set of tools. Without these tools, you cannot run a pure water factory. This step is where you spend a lot of money as the needed equipment for pure water production is not just much but also very expensive.

The equipment and materials needed for pure water production include but are not limited to:

  • Borehole
  • Distillation system for water purification
  • Sealing machine
  • Packaging materials (sachet nylon and bagging nylon)
  • Generator
  • Truck for pure water distribution

Those are some of the materials needed. To know all, you need to include it in your market research, by visiting a pure water factory and jotting down all the equipment you find.

Read Also: How to Start a Profitable Frozen Food Business in Nigeria

7. Set Up Your Factory

After getting a good location, building your factory, and getting all the needed types of equipment, the next thing is to set up your factory. This process involves the installation of all the equipment and materials and getting set to start production.

8. Hire Staff

After getting your factory ready for production, you need to employ staff ranging from supervisors, packagers, and machine operators to cleaners, drivers, and security personnel.

While hiring, make sure you have a set of management rules for your staff, and make sure they can meet not only your expectations but most importantly the customers.

9. Start Production

Once you’re done with step one to eight, the next thing is to get started and get working by starting production. This is one of the most important parts of the business, and as the owner, you’ll need to take note of all the production processes and make sure the employees are working the right way.

10. Market Your Business

After producing your pure water and packaging them, to start driving sales, you’ll need to market your business.

The pure water business in Nigeria is very easy to market. As a manufacturer, you’ll need to approach wholesalers and retail store owners and market your product to them. To get them to buy, you must make sure that your price is cheaper, and your services are way better than your competitors.

In the start, if possible you can sell with little profit and/or offer great discounts just to create awareness, and build a loyal customer base. Then you can regularise your price later on once you have enough customers.

Branding is part of marketing in pure water business in Nigeria. Therefore, it will be ideal to design your truck with your brand colour, business name, and logo.

Sachet Water Business – FAQs

What does it take to start a pure water business?

To start a pure water business, you need an in-depth knowledge of how the business works, startup capital, setting up a factory, and getting all the needed equipment.

What is the risk in pure water business?

The major risk involved in pure water business in Nigeria includes getting in trouble not registering your business with legal governmental bodies such as NAFDAC.

What are the challenges faced in pure water business?

Challenges faced by in pure water business in Nigeria include unavailability of good water, scarcity of water during the dry season, and bad power supply.

What is the cost of setting up a sachet water factory in Nigeria?

The cost of setting up a sachet water business in Nigeria ranges from 5 million naira to 50 million naira depending on the size.

Conclusion

Whether as a manufacturer, wholesaler, or retailer, pure water business in Nigeria makes a lot of money all year round, as the demand for good and clean water at an affordable rate keeps rising. If you’re looking to start, I believe this post on how to start a pure water business in Nigeria will help a lot.