With the increasing population and government’s inability to provide clean and affordable drinking water, table water is the next best solution.
Speaking to the managing director of Marvelous Covenant Limited, the producer of Mayfis table water, Mr Wole Tokede, he says it is a profitable business because people will always drink water.
He however admits the business has its own challenges as the producers are at the mercy of truck drivers conveying the water for sale. “Logistics is a major problem. This makes the business difficult to operate. The business is highly competitive and faced with tax issues,” he said.
Starting The Business
Tokede notes there is need for a business plan to help establish from the onset, the financing of the project and the amount of money needed. Business plan, he stressed becomes imperative at this stage because it determines the level of funding required and where it is coming from.
Registering the business with the Corporate Affairs Commission (CAC) and NAFDAC, Federal Inland Revenue(FIRS) or the State Internal Revenue, even as a brand name or brand registration is equally needed.
Other things required are: a befitting place for business (factory site), sink a borehole and install tanks overhead, install distillation system for water purification, get a sealing machine, get packaging materials, which must be printed with the company’s name and the brand name of the table water must be procured. The number of rolls procured should be according to the capacity of the enterprise.
Also, a generator set must be installed to power the operations. There are different capacities of generators and also different manufacturers and it all depends on the capacity of the enterprise as well as the start up capital.
In acquiring a truck for distribution: the truck must be able to carry reasonable bottles of table water for distribution to a great number of customers for it to be profitable.
In conclusion, starting a table water business in Nigeria is very lucrative and will require passion, hard-work and a reasonable amount of money. Also, the size of the organisation determines the scale of operations, the investment in cash, human capital and machines.
While it requires a minimum of N3million to N5 million to start, owners of these enterprises have had good testimonies as to the monthly income which they put at over N500,000 or more monthly, depending on the size and sales made within a month. They disclosed that they made the highest sales during summer.