DISTILLATION OF WATER

• Agriculture
• Processing

This business idea is for production of Distilled water to ensure its purity. The business idea is premised on the production of 200 liters per day which translates into 44,400 liters per year. The revenue potential is estimated at US$ 300 per year. The total Investment can cost about US $ 7,729.

Production Process

Tap water is collected and heated in a glass flask to the boiling point             and thus vaporizes (becomes steam), While other substances remain in solid state, in boiler (glass flask). Steam is then directed into cooler (condenser tube) containing cold water, where it cools down and returns to liquid water, purified of additional substances found in it before distillation

Market Analysis

There is high demand for distilled water as it is purified for human consumption, the distilled water can be supplied to supermarkets, retailers, wholesalers, hospitals and individual organizations. The major key players in this sector include; Quality Chemicals Industry, Rwenzori Beverages, Highland Beverage Company and among others 

Equipments and Tools Required in Us$

Item     Unit		Qty	Unit Cost	Total
Water distiller	No.	1	10,000	10,000
Delivery van	No.	1	5,000	5,000
Total cost of Machinery				15,000

Raw materials  water

Project Capacity

The project has a capacity of 100-240 gallons per day (24hrs)

 

Production and Operating Cost in Us$

a)        Direct Materials, Supplies and Costs in US$

Profitability item	per day	per month	per year
Revenue
Distilled water	200	5,200	62,400
Less Prod & Operating Costs	35	913	10,956
Profit	165	4,287	51,444

 

 

Cost Item       Units   Unit Cost/day          Qty/day        Prod. Cost /day					Prod. Cost/ month	Prod. Cost/ year
Water	Ltrs	0.001	1	0.001	0.02	6
Sub-total					0.02	6
General costs (Overheads)
Utilities (power)					50	600
Salaries					300	3,600
Rent					150	1,800
Fuel					100	1,200
Depreciation (Assets write off) Expenses					313	3,750
Sub-total					913	10,950
Total Operating costs					913	10,956

The plant is profiled to take a period of 4 years in production

Depreciation rate is 25% per year

Production assumed to take 8 hour per day

Product Cost and Price Structure in Us$

Item	Qty/ day	Qty/yr.	Unit cost	Prod./ yr.	Unit price	Total Revenue ($)
Distilled
water	1,000	312,000	0.001	237	0.2	62,400