Food industry, production of drinking water

Project summary

The issue of clean water is now very important, as good quality drinking water is the basis of health and youth.
The mineral water business is considered to be very profitable. The company plans to produce drinking water and sodium chloride mineral water.
Water bottling will be carried out immediately at the place of production, guarantees the quality of our products.
On average, from 3 years you can return the initial investment and reach a stable income.

Our main product is spring mineral drinking and medical table water in PET 0.2-2 liters, according to the Academic Council of the Ukrainian Research Institute of Medical Rehabilitation and Balneology, the water meets the requirements of GOST 878-93 "Mineral drinking water" and is medical table chloride -sodium.
Main characteristics:
The mineral water plant was purchased in 2015, located on a plot of 1.3340 hectares, in an environmentally friendly area - Ukraine, Dnipropetrovsk region, Petrykivskyi district, p. Kulisheve. Petrykivka district is famous for its Petrykivka painting and in 2012 it was nominated to the Representative List of the Intangible Cultural Heritage of Humanity by UNESCO, and in 2013 it was included in it.
On the territory of the plant there is a well with natural mineral water with a depth of 108 m (medical-table chloride-sodium) and a drinking well with a depth of 22 m (natural-mineral), with passports.
The site is located near two large industrial cities: 45 km - Dnipro; 25 km - Kamyanskoye and 7 km - the district center of the village. Petrykivka.
The plant has an asphalt access road. The territory is fenced with reinforced concrete slabs and has two entrances to the territory.
Silicate brick structures were built over both wells.
The main building (reconstruction of the club building) with an area of 310 square meters. consists of:
- shop for installation of the bottling line - 124 sq.m. (width 6.6 m, length 19 m);
-provided laboratory - 12.5 square meters;
-two rooms for staff - 19.9 square meters;
-room for ITP - 14.7 sq.m.
The following buildings have been completed:
-compressor - 8 square meters;
-boiler house - 8 sq.m.
-premises for the blowing machine - 25 sq.m.
- water treatment department - 45 sq.m.
A place for storage capacity up to 60 cubic meters has been provided and prepared.
There is a two-storey checkpoint made of silicate brick - 24 sq.m.
Electrical installation works were performed, namely: KTP-117 transformer for 160 kVA was installed.

In recent years, an increasing number of Ukrainians care about their health and strive to consume quality and healthy products. This also applies to drinking water. In this regard, the level of consumption of mineral water will increase.
In addition, given that our potential customers are about 50% of the population of Ukraine, and today they are served by only 10 large producers who occupy more than 50% of the market in the segment of carbonated water and more than 70% - non-carbonated. Other market segments are small local business brands. We can assume with some confidence that the annual increase in sales will be 1,500,000 units. or 20%.

We will strive to make our company successful in the regional market of mineral and drinking water in the future.
The main characteristics of our company will be low prices and high quality products.
We will believe that we have achieved some success after we are able to win the trust of customers and firmly establish ourselves in this niche of business.
Our company will be distinguished from its competitors by water mineralization, which is ideal both for quenching thirst and for preventing various diseases; taste qualities; regional location of the artesian well.
The main task of the company is to achieve a stable monthly sales level of UAH 5,000,000.
The amount of profit in them will be 50%.
We are going to achieve such indicators thanks to:
- increase in sales;
- entering new markets;
- a more effective strategy.
During the period of business formation, we will face such problems as the unspoken name of the company.
We plan to solve this problem by conducting an advertising campaign and by June 1, 2021 these problems will be solved.
Planned events during the project implementation:
- completion of the business plan;
- obtaining funding;
- launch of a new advertising campaign;
- creation of a trade network;
- concluding an agreement with new suppliers;
- reaching the level of break-even sales;
- achieving the planned sales volume.
Competition in the food industry in the area under consideration is high. There are only three companies that compete directly with each other.
In general, the weight of companies in the market remains quite stable and we have every reason to believe that this situation will continue in the future.
The level of sales of competing companies is approximately UAH 5,000,000. for a year. These companies compete with each other within the country.
Competitive companies can be classified by company size. Their main specialization is the production and sale of mineral water. Some companies also offer the production and sale of sweet drinks.
Most of these companies are managed by a team of managers and have been operating in the market for more than 10 years.
Customers periodically change their choice, as a result of which competing companies are forced to constantly resort to certain measures, namely the design of packaging and water quality.
In general, the annual sales in the industry are divided as follows:
- I quarter - 15%
- II quarter - 32%
- III quarter - 35%
- IV quarter - 18%
As a result of this seasonal distribution, we can conclude that since water consumption varies depending on the season, so production and sales change. This must be taken into account when calculating the plan for the acquisition of material resources, as well as planning financial flows during the year.

Our main differences from competitors are:
- mineralization of water which is ideal both for quenching thirst and for prevention of various diseases;
-taste qualities;
- regional location of the artesian well.

The uniqueness of our water is that with high mineralization it has low hardness.

Investments are needed for the purchase of automated equipment and transport, the purchase of raw materials and working capital

Investor proposals:

1. Return on investment within 36-60 months.
2. Distribution of profits before the full return of invested funds as follows: 60% on return on investment, 40% distribution among the founders or for development.
3. Consider any proposal from the investor on the form of investment, interest and terms of cooperation.