What is a packaged drinking water project report?
A packaged drinking water project report is a detailed project report (DPR) for a plant that purifies raw water and fills it into PET bottles, cups or 20 litre jars. The water is filtered, treated by reverse osmosis and disinfected. The report sets out the process, machinery, licences, market, project cost, means of finance, five-year projections, DSCR and break-even.
Entrepreneurs use it to size the plant and apply for a term loan or PMEGP; bank credit officers use it to judge whether water sales can repay the loan.
Also known as: packaged drinking water business plan, mineral water plant project report, RO water plant project report, bottled water plant DPR.
What a bank checks in a packaged drinking water project report
A credit officer reads a water plant report for a handful of numbers that show whether bottle and jar sales can carry the loan. These are the values in our sample report and the reason each one gets checked.
Banks compare it with what distributors actually pay, not the printed MRP. Pricing sales at MRP is the quickest way a water report overstates revenue.
Packing is the largest cost line in Year 3 of the sample, ahead of raw materials at 21.4%, which are mostly PET preforms and caps.
DSCR is the cash available for the loan divided by the instalments due. It dips in Year 2 when full principal repayment starts; the five-year average is 1.52.
Water sells hardest from March to June. A lender wants to see the plant cover its fixed costs in the slower winter months too.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, pack mix and market.
Packaged drinking water manufacturing plant cost in India
Cost turns on three choices: litres per day, the pack mix between jars and bottles, and whether you blow your own bottles from preforms. The middle tier is the unit modelled in our sample report; the other two are indicative ranges.
20 litre jar unit
₹30–70 lakh
About 5,000–10,000 litres per day, mostly 20 litre jars
- RO plant and jar line₹15–30 lakh
- Shed and fit-out (or rent)₹8–20 lakh
- Jars and working capital₹5–15 lakh
Can fit PMEGP, subject to its limits
Bottle and jar unit
₹163 lakh
14,000 litres per day, 42,00,000 litres per year
- Plant and machinery₹78 lakh
- Land and building₹63 lakh
- Working capital margin₹3.63 lakh
Term loan ₹122 lakh (75%), promoter ₹41 lakh
Automatic bottling plant
₹3–8 crore
About 40,000–1,00,000 litres per day, with in-house bottle blowing
- Machinery₹1.5–4 crore
- Land and building₹1–2.5 crore
- Working capital margin₹20–60 lakh
MSME term loan on the bank's own terms
Jar unit and bottling plant ranges are indicative and exclude land unless stated. Costs vary with location, automation and machine make.
Packaged drinking water plant economics
Our sample project report on packaged drinking water models a 14,000 litre per day plant working 300 days a year. It starts at 60% of capacity and reaches 80% in Year 5, selling at an average ₹9.67 per litre before GST.
| Land and site development | 15.02 |
|---|---|
| Building and civil works | 47.87 |
| Plant and machinery | 78.03 |
| Other fixed assets | 8.47 |
| Contingencies | 6.30 |
| Preliminary and pre-operative | 3.89 |
| Working capital margin | 3.63 |
| Total | 163.21 |
| Promoter's contribution (25%) | 40.80 |
|---|---|
| Term loan from bank (75%) | 122.41 |
| Cash credit limit (separate) | 10.89 |
| Total project cost | 163.21 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Packaged drinking water manufacturing process
Raw water goes through filtration, reverse osmosis (RO) and disinfection before it is filled. The order matters: each stage protects the one after it, and the RO membranes are the most expensive part to replace.
- Source testing and storage
Bore or municipal water is tested for the full list of parameters before use and held in a raw water tank; a new source needs fresh tests.
- Sand and carbon filtration
Pressure sand filters remove suspended solids, and activated carbon takes out chlorine, odour and organics that would foul the membranes.
- Micron filtration and RO
Cartridge filters guard the high-pressure pump, then RO membranes cut dissolved salts (TDS); part of the feed leaves as reject water.
- Mineral dosing
Food-grade minerals are dosed back in measured quantity to correct taste, each with its own test certificate.
- Ozonation and UV
Treated water is ozonated in a contact tank and passed through UV, and the disinfection method is declared on the label.
- Rinsing, filling and capping
Bottles and cups are rinsed, filled and capped on an automatic monoblock machine; 20 litre jars are washed before filling.
- Lab release and packing
Each batch is tested in the in-house lab for TDS, pH, turbidity and microbes before it is coded, shrink wrapped and dispatched.
Raw materials for a packaged drinking water plant
Water itself costs little; the money goes into what holds it. PET preforms and caps are 80% of raw material cost in our sample. Preform prices follow PET resin, so the sample holds about 20 days of stock and a unit should line up two suppliers.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| PET preforms and caps | 80% | 48.66 |
| Labels | 8% | 4.87 |
| Water treatment chemicals | 12% | 7.30 |
| Total | 100% | 60.83 |
Packing materials (₹91.03 lakh in Year 3) are a separate cost line in the sample and are not in this table.
Machinery for a packaged drinking water plant
The RO plant is the costliest item in the sample, just ahead of the rinsing, filling and capping machine. Together they make up more than half of plant and machinery.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Reverse osmosis plant | Removes dissolved salts through membranes | 23.41 |
| Sand and carbon filters | Remove solids, chlorine and odour before RO | 6.24 |
| Ozonator and UV system | Disinfect the treated water | 7.81 |
| Rinsing, filling and capping machine | Rinses, fills and caps bottles in one block | 21.85 |
| Stainless steel storage tanks | Hold raw, treated and ozonated water | 7.02 |
| Shrink wrap machine | Packs bottles into shrink-wrapped bundles | 6.24 |
| Laboratory equipment | Chemical and microbiological batch tests | 5.46 |
| Total plant and machinery | 78.03 | |
The sample list has no stretch blow moulding machine; a unit that blows its own bottles from preforms adds one with a high-pressure compressor. Get current quotations before you finalise.
Who buys packaged drinking water
Packaged water sells in 200 ml cups, 500 ml and 1 litre bottles and 20 litre returnable jars. Demand peaks from March to June and around weddings, fairs and festivals, then slows in winter.
Water is heavy and cheap per litre, so freight decides who can serve a market. A regional brand that delivers reliably within its own district can hold shelf space against national brands that ship from far away.
- Distributors and grocery retailers
- Offices, shops and homes on weekly 20 litre jar delivery
- Hotels, restaurants, caterers and wedding planners
- Event and fair organisers
- Hospitals, schools, factories and canteens
- Bus stands, railway stations and highway outlets
Where a new unit wins: a 20 litre jar route of offices and shops gives repeat weekly orders and steadier cash than seasonal bottle sales. Track every jar, because lost or unreturned jars come straight out of margin.
Licences for a packaged drinking water plant, as of October 2026
The rules changed in the last two years: BIS certification is no longer compulsory under food law, but FSSAI testing and inspection are stricter.
| Food safety licence | FSSAI licence before production. Packaged drinking water is a high-risk food category, so the plant is inspected before the licence is granted and then once a year |
|---|---|
| Product testing | FSSAI Scheme of Testing from 1 January 2026: source water and product tests at FSSAI-notified NABL labs, with only compliant batches released |
| Product standard | IS 14543:2024. BIS certification is now voluntary; if you certify, the BIS product manual sets the in-house lab, daily tests and marking rules |
| Groundwater | NOC from CGWA or the state groundwater authority, a tamper-proof digital flow meter and abstraction charges per cubic metre. No NOC for new packaged water units in over-exploited blocks |
| Containers | PET and other plastic bottles and jars to IS 15410; polyethylene pouches to IS 15609 |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; the board sets the category and the conditions for RO reject water discharge |
| Packaging and tax registration | Legal Metrology registration as a packer, Udyam and GST registration. GST on packaged drinking water (HSN 2201) is 5% from 22 September 2025 |
Rules change. Confirm current requirements with FSSAI, CGWA and your state authorities before applying.
Mistakes that weaken a packaged drinking water project report
- Buying land before checking the groundwater block
CGWA does not grant an NOC to new packaged water units in over-exploited blocks. Check the block status and get the source water tested first.
- Pricing sales at MRP
Distributors and retailers take their margin out of MRP. Revenue must use the ex-factory rate per litre, or DSCR comes out too high.
- Leaving out testing costs
Outside NABL tests, lab staff and consumables are running costs. A failed test holds dispatch until batches pass again, so the report should allow for downtime.
- Ignoring RO reject water and membrane life
RO rejects part of the feed water. Size the raw water draw for it, plan its discharge and budget for membrane and cartridge replacement.
- Using summer sales as the yearly average
Peak-month volumes spread across twelve months inflate revenue and leave working capital short in winter.
How NPCS helps you set up a packaged drinking water plant
- Capacity and pack mixChoose litres per day and the split between jars, bottles and cups to suit your market and budget.
- Machinery and suppliersSize the RO, ozonation and filling line, decide on bottle blowing and compare quotations.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender or PMEGP office wants.
- Approvals and layoutPlant and lab layout, groundwater NOC, FSSAI licensing and the testing plan for your state.
NPCS's client list includes 7 packaged drinking water assignments and 13 in beverages overall, for entrepreneurs and companies in India and abroad. The NPCS project team, led by founder Ajay Kumar Gupta, works each report out for the client's own site and capacity.
What's inside the packaged drinking water sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
What clients say about NPCS
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264 Google reviews, as of 20 Oct 2026
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- helpful for startups 15
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Packaged Drinking Water project report: frequently asked questions
How much does it cost to set up a packaged drinking water plant in India?
A small unit filling mainly 20 litre jars needs roughly ₹30–70 lakh, and an automatic bottling plant that blows its own bottles about ₹3–8 crore. Our sample report models a 14,000 litre per day bottle and jar unit at ₹163 lakh including land and building. These are indicative figures; a project report works out the cost for your capacity, pack mix and site.
Is a BIS licence still mandatory for packaged drinking water?
No longer as a food law requirement. FSSAI withdrew mandatory BIS certification and, from 1 January 2026, requires makers to follow its Scheme of Testing, with source and product tests at notified NABL labs. IS 14543:2024 is still the product standard, and you can hold a BIS licence voluntarily. You still need an FSSAI licence before production starts.
Do I need a groundwater NOC for a packaged drinking water plant?
Yes, if you draw groundwater. The CGWA guidelines require a no objection certificate for industries, and new packaged water units are not granted one in over-exploited blocks, even if they are MSMEs. Units must fit a tamper-proof digital flow meter and pay abstraction charges per cubic metre. Some states issue the NOC through their own groundwater authority.
Is the packaged drinking water business profitable?
In our illustrative sample, a 14,000 litre per day unit earns a 16% return on investment in Year 3. It breaks even at 44% of capacity and pays back in about 4.2 years. Actual profit depends most on your ex-factory price per litre, PET preform and packing costs, how full the plant runs outside summer and how quickly distributors pay.
Can I get a PMEGP loan for a packaged drinking water plant?
Yes, if the project fits the scheme. PMEGP covers manufacturing projects up to ₹50 lakh, with a margin-money subsidy of 15–35% of project cost depending on category and location. A 20 litre jar unit can fit within that limit; a bottling plant like our sample usually needs an MSME term loan. Scheme terms change, so confirm with the bank or DIC.
What is the GST rate on packaged drinking water?
GST on packaged drinking water under HSN 2201 is 5%, covering both 20 litre jars and smaller bottles. The GST Council cut the rate from 22 September 2025; before that, 20 litre jars attracted 12% and other bottled water 18%. Flavoured or sweetened waters fall under a different heading and a higher rate, so check the classification for each pack.
Packaged drinking water plant ka business kaise shuru kare?
Start by testing your water source and checking the groundwater block status with CGWA, then choose capacity and pack mix: 20 litre jars, bottles or both. Get a project report, apply for the loan, and register for Udyam, GST and an FSSAI licence. Set up the plant and lab, and arrange NABL testing before your first dispatch.
Is the packaged drinking water project report PDF free, and can I use it for a loan?
The sample PDF is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- Product manual for packaged drinking water, IS 14543:2024 (PM/14543/7)Bureau of Indian Standards, checked Oct 2026
- Consolidated guidelines to regulate and control ground water extraction in IndiaCentral Ground Water Authority, Ministry of Jal Shakti, checked Oct 2026
- Recommendations of the 56th meeting of the GST CouncilPress Information Bureau, Ministry of Finance, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP)MSME and Export Promotion Department, Government of Uttar Pradesh, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.