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Purified Water Bottling Plant





Product Description:


Purified water has become popular among foreigners and high income groups during the last 5 to 7 years. Now there are more than five purified water bottling plants in the country clustering in and around Addis Ababa. The product has in some areas become a conspicuous consumption item.
 

Rational:

When factory bottled purified water appeared in the market for the first time, many people doubted about the market success of the product because they believed that with low per capita income, not very many people will buy the product. But because of robust demand not only there is one bottling plant but more than 5 in a matter of six years. However, like many other factories, bottling plants of purified water are concentrated around Addis Ababa. Bottled water is one of those products which is very expensive to transport long distances. In view of the fact that purified water can be processed from springs, rivers, wells, etc., the bottling plant could be established any place where there are these water sources. So far, except for one or two bottling plants in North Shewa, there are no new purified water bottling plants in the Amhara Region. Consumers in the Region get their plastic bottled purified water from Addis Ababa which makes the price of the water almost twice that of Addis Ababa. The Region should be self-sufficient in the supply of purified water that people consume; and one or two bottling plants should be established in the region.

SUPPLY OF PURIFIED WATER (HECTOLITERS)

 

 

Year

 

 

Domestic

Production

 

Import

 

 

Total

Supply

Market Share (%)

Domestic

Production

 

Imports

1997

374,257

2,498

376,755

99.34

0.66

1998

390,068

967

391,035

99.75

0.25

1999

421,307

953

422,260

99.77

0.23

2000

399,763

1,007

400,770

99.75

0.25

2001

395,451

571

396,022

99.86

0.14

2002

394,632

198

394,830

99.95

0.05

2003

432,600

224

432,824

99.95

0.05

2004

398,844

47

398,891

99.99

0.01

2005

394,303

723

395,026

99.82

0.18

2006

448,279

704

448,983

99.84

0.16

Average

404,950

789

405,740

99.80

0.20

 

Source: Customs Authority, External Trade Statistics, 1997-2005. CSA, Statistical Abstract, various years.




Market potential:

The main consumers of bottled purified water in the Amhara Region are the urban high income groups and outsides who travel through the Region, such as tourists, business people and civil servants. If we assume that at least five percent of the urban population (95,000) of the Region consumes one bottle of purified water per day, this amounts to an annual consumption of 35 million bottles which is more than one half of the production capacity of the Ambo Mineral Water Bottling Plant. With increasing population and modest annual increase of income, annual consumption of purified bottle water will also increase. In short, the current demand for purified bottled water will justify the establishment of about two bottling plants.




Source of Raw Material:

Springs, wells, creeks, rivers whre the plant is to be established.
 
Process and Technology:

The main stages of purification and bottling are pumping water from source to storage tanks, passing the water through a series of purification tanks, adding some chemicals at certain stages to further purify the water and bottling the water. Main machinery include water pumps with accessories, storage tanks, purification tanks, and bottling machine.
 
Estimated Investment:

Cost of building, machinery and working capital is estimated to be about Birr 3.5 million.
 
Benefits:

Economic utilization of a natural resource, promotion of self-sufficiency, introduction of new skills and technology, saving of regional financial resources.

 

ĉ
Moges Ashagrie,
Apr 30, 2011, 10:20 AM
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