How to Set Up A Water Filling Station Business
Have you ever wanted to start a water filling station business in Kenya?
The demand for clean drinking water in many households continues to increase every day. Many Kenyans are becoming conscious of the dangers of consuming contaminated water and are seeking alternatives to municipal supplied water.
One income generating venture you can opt for and be assured of daily clients is a water filling station business.
Before we proceed, it’s important to note that there are two ways of going about this business. One you can opt buy already purified water or you can opt to purify the water on your own.
The first option is more cost effective to start because there are some equipment that you will not need to invest in. However, the downside of this option is that you will be making less profit than the person who has invested in purifying equipment.
In the second option you will invest in water purifying equipment which can significantly add to the cost of setting up the business but eventually you will recoup what you had invested in the equipment as a result of the increased profit margins.
In the former option you are buying water that is already purified which means that there’s a mark-up already added to the water. But if you are purifying your own water from the source, you will be saving on the mark-up added to the already purified the water.
*Equipment needed.*
The most cost of setting up a water filling station in Kenya will be consumed by the following machines and equipment:
*Purification machines*
There are several water purification machines you can choose from depending with your needs. The cost is determined by their output capacity.
*1. Fresh water purification machine*
This is ideal for council water, spring water, and other natural sources.
Output capacity – 250 liters per hour
Cost- Ksh.220,000
*2. Reverse Osmosis (RO) System*
The reverse osmosis system is ideal for water treatment with less fluoride and total dissolved matter/solids.
Output capacity – 200 liters per hour
Cost- Ksh.280,000
*3. General Purpose Water Plant*
For water with high fluoride, iron and suspended solids.
Output capacity – 250 liters per hour
Cost – Ksh.330,000
The above are different water purification machines you can choose from. Whatever you choose depends with the source of your water.
*Filling stations*
Depending with your intended target market, you can choose between the following filling stations:
*1. Normal filling station – manual type.*
Output capacity – 2 taps
Cost – Ksh.25,000
*2. Water vending station ATM with digital control unit (PLC)*
This is optional if you just want to package small water bottles only. It is password protected and a sales recorder which helps in sales reconciliation and ability to sell any amount from as low as Ksh.10.
Output capacity – 900 liters per hour
Cost – Ksh.170,000
*3. Fresh water coin operated filling station*
This is also optional if you just want to package small water bottles only. It accepts coins of Ksh.5, 10, 20 & 40. It is also password protected and has a sales recorder which helps in sales reconciliation.
Output capacity – 2 taps and a bottle rinser
Cost – Ksh.270,000
However, you might want an automated production line whereby you will require an automated line with conveyor belt. SASET Technical Services +254726747403 or +254783747403 offer machinery, equipment and control systems outsourcing contracts for any business or individual interested in acquiring such from abroad.
This is most suited for large production lines but also medium businesses can have one.
*Other equipment needed*
*1. Bottle washing sink with jet rinser*
Has a double pot sink for washing the outside part of the bottle with raw water and a pressurized jet to rinse inside the bottle with product water.
Can rinse all bottle sizes from 500ml to 20l
Cost Ksh.120,000
*2. Normal washing sink*
Cost – Ksh.30,000
*3. Packaging bench/table*
Size – 2 feet by 4 feet
Cost – Ksh.20,000
*4. Purified water stainless steel holding tank with taps*
Capacity – 300 liters
Cost – Ksh.70,000
*5. Raw water storage tank*
This can be a plastic tank from one of the local manufacturers
*Other items that determine the cost of setting up a water filling station/plant*
*Business licenses – these depend with what your county council charges. You can get these by visiting their offices.
*Rental cost – this also depends with your location and size of the premises or if you own one.
*Labour cost for modifying your premises and installation – your premises might need some modification to help allow for the equipment to be set up.
*How profitable is water filling station business?*
This is how you can easily make Ksh.200,000 per month with water filling station business.
Let assume you sell your water at Ksh.10 and sell 1,000 liters per day.
Ksh.10 x 1000 liters = Ksh.10,000
Ksh.10,000 x 30 days = Ksh.300,000
Now assuming your overhead costs per month total to Ksh.100,000 then you are left with a cool Ksh.200,000.
However this is when you are selling at the price of Ksh.10. There are instances where you can make much more or less. For example if you sell your water at Ksh.20 you double that amount and if you sell at Ksh.5 you will not realize that amount.
The secret is to find a suitable location where there is no competition and good population of potential clients.
Note this is just for dispenser water. You can also bottle your own water and supply to nearby shops to make extra money.
*Case study:*
In Umoja estate Nairobi, there are areas where water is sold at Ksh.10 per liter and there are places it’s sold at Ksh.5 per liter. Why the difference you may be wondering.
In the case of Ksh.5 per liter there are 3 water vending stations near each other including a supermarket. In the case of Ksh.10 per liter, there are no near water vending stations so the vendor enjoys higher prices.
It’s a no brainer therefore to conclude that the location you choose will determine if you enjoy top prices or not.
*Final Word*
As you have seen above, you can easily make Ksh.200,000 per month in water filling business in Kenya.
The amount of money you will make will depend on where you will locate your business.
Is water filling business something you are interested in?
Roll up your sleeves and start it.
By
Timothy Angwenyi
Business Consultant
Justine Nyachieo
Business Man & Mentor
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