Setting of Watering plant. Water Supply. Government of Gujarat

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1 Setting of Watering plant Water Supply Government of Gujarat

Contents Project Concept 3 Market Potential 5 Growth Drivers 7 Gujarat Competitive Advantage 8 Project Information 10 - Location/ Size - Infrastructure Availability/ Connectivity - Raw

2 Contents Project Concept 3 Market Potential 5 Growth Drivers 7 Gujarat Competitive Advantage 8 Project Information 10 - Location/ Size - Infrastructure Availability/ Connectivity - Raw Material/ Manpower - Key Players/ Potential collaboration opportunities - Project structure/key Considerations Project Financials 15 Approvals & Incentives 17 Key Department Contacts 18 Page 2

Project Concept Bottling / Packaged Drinking water plant In a bottling water plant drinking water and beverages are prepared for sale and distribution in a specific geographic region.

Packaged drinking water uses filtration, UV or ozone treatment or reverse osmosis (RO) before it becomes fit for human consumption and Natural mineral water meets the specified quality standards

3 Project Concept Bottling / Packaged Drinking water plant In a bottling water plant drinking water and beverages are prepared for sale and distribution in a specific geographic region. Packaged bottled water industry is segmented into two parts; Packaged drinking water and Natural mineral water. Packaged drinking water uses filtration, UV or ozone treatment or reverse osmosis (RO) before it becomes fit for human consumption and Natural mineral water meets the specified quality standards without any processing. Natural mineral water uses water from underground sources which is packaged close to the source and meets the specified quality standards without any processing. Type of Bottled water Sales by packaging in India Spring water, has a Tds level of maximum 500 parts per million (ppm) Purified water, has a Tds level of not less than 10 ppm Mineral water, has a Tds level of not less than 250 ppm Natural mineral water, contains same amount of Co2 before and after the treatment litres, 6% Pouches, 8% Cups, 10% 2 litres, 14% 500ml, 20% 1 litre, 42% Source: Market Reports on India Packaged bottled drinking water convert the infected water into a treated water through a process that involves filtration, UV or ozone treatment or reverse osmosis (RO). Increasing population, industrialization and demand for fresh water are the driving factors for India s bottled water market over the past few years. Bottling companies are aiming to capture all the different packaging segments of bottled water market. More demand for bulk water and water cups is coming from many corporate events and social functions. In India, contaminated water continues to be an issue and cause diseases such as diarrhoea, dysentery, typhoid, jaundice and gastroenteritis. As a result; the usage of bottled water has become even more important and significant. Page 3

4 Project Concept Water bottling process As a first step raw water is chlorinated with Dosing pump. This chlorinated water is then covert to de-chlorinated water to softened water to treated water and finally to purified mineral water with the help of different filters, RO unit and U.V system. The purified water then gets packed into bottled water after testing. Water collection Raw Water (Bore well) Raw water Tank Dosing System Testing Pressure and Filter Water purification/filtration Activated Carbon Filter Micron Cartridge Filter High Pressure Pump Reverse Osmosis System Ozone Generator with Re-circulation System Final Product Storage Tank U.V. System Packaging and storing Filling and Packaging Storage and Testing Sealing & Capping M/C Visual Examinin g and Product Testing Page 4

5 Market Potential Water demand on the rise in India Water demand across India, (billion cubic metre) 813 1, Others Drinking Water Industry Irrigation Key metrics 230 cubic km of groundwater is drawn by India per year 40% water losses out of total distributed water, highest in world 33% expected rise in Indian population, from 1.2 billion in 2015 to 1.6 billion by 2030 Source: Standing Committee of Ministry of Water Resources Total water production (billion cubic meter) Total water production/ Household (litre/day) , Source: Business Monitoring Intelligence (BMI) Low water production/household is becoming a big challenge and the demand supply gap is expected to rise at a faster rate. 225 million people in India do not have access to safe drinking water. More than 66 million Indians are at risk due to excess fluoride The shortage of safe drinking water makes bottled drinking water the automatic choice for consumers Bottled water market is preferred over water purifiers as bottled drinking water plant require hassle free setup and have less capex involved. Indian bottled water market is divided into two parts: on-traded (bars, restaurants) and off-traded (retail) business Parle Bisleri Ltd maintains its lead with 26% of the offtraded value share in Indian bottled water market. The company has plans to set up new plants to reach new markets. Bottled water market faces high level of competition from various regional players. The effective distribution plays an important role in overall sale. State governments have also planned many launches in their respective states such as West Bengal, Public Health Engineering Dept. launched the packaged water brand Pran Dhara in August Market share of retail water bottle segment in India (%) Bisleri PepsiCo Coca-Cola Dhariwal Ind UB group Others Source: Yahoo finance Page 5

Market Potential Global and Indian scenario Global total bottled water off-traded volume (in million litres) 265.8 197.

maximum share. INR60.8 billion Indian off-traded bottled water market value in 2016 26% Y-o-y increase in bottled water value for off-traded value in 2016 20.

6 Market Potential Global and Indian scenario Global total bottled water off-traded volume (in million litres) Source: Euro monitor The total global off traded volume is a combined volume of still bottled water, Functional, Flavored and Carbonated bottled water with still bottled water having the maximum share. INR60.8 billion Indian off-traded bottled water market value in % Y-o-y increase in bottled water value for off-traded value in % CAGR Volume growth is forecasted in off traded bottled water business between 2015 to Bottled water sales by value and volume are on the rise in India and are expected to further grow in future Packaged bottled water Industry in India(INR billion) 160 Bottled water sales to institutional channels in India ( , million liters) 10, , , , , Source: Business Standard Source: Euro monitor According to Bureau of Indian Standards (BIS), there are 1200 bottling plants (out of which 600 are in the state of TamilNadu) and 200 brands of packed drinking water across the country Page 6

7 Growth Drivers Gujarat, one of the leading state in terms of economic growth and industrialization, has accounts for 40% of the total market share of Bottled water market Rising water demand supply gap in Gujarat Water demand (billion cubic metre) in Gujarat is expected to rise however per capita availability of water (in billion cubic metre/annum) is decreasing Uneven water distribution Source: CII- Tata strategic management group report Source: Status of Environment & Related Issues - Gujarat 70% of Gujarat's fresh water resources are located only in 30% of its geographical area. The total available water resources of the state is ~55608 MCM, out of which, utilizable surface water in the state is only MCM. Urbanization of Gujarat High water borne diseases Low quality standards Nearly 50% of the Gujarat population lives in urban areas in comparison to around 30% Indian average. And with increasing industrialization and rising investments in the state people started preferring bottled water than the other source of water. Number of deaths due to water-borne diseases were around 1465 in2015 due to presence of contamination and unsafe drinking water 85% of the available water has high pollution level Of 26 districts in the state, 20 are severely affected by salinity, 18 are affected by fluoride, 17 are affected by chloride Government initiatives Gujarat government has launched the Water for Future project for INR200 crore with Coca-Cola for package water which is expected to increases the efficiency by 30%. It also helped to reduce treated effluent discharge. A strong talent pool of scientists and engineers with setting up of national research laboratories, centres of academic excellence in Rise in health awareness and increase in tourist inflow are also boosting the per capita consumption of bottled drinking water in Gujarat Page 7

8 Project Information India Leading Players Bisleri Company PepsiCo India (Aquafina) Himalayan (Tata Global Beverages) Parle-Agro (Bailey) Corporate office Mumbai Gurgaon (Haryana) Gurgaon (Haryana) Mumbai Business Offerings Bisleri, Vedica, Bisleri Soda, Urzza, Bisleri Pop, Additional products Food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana Natural Mineral water Dhariwal (Oxyrich) Pune Packaged drinking water Coca Cola (Kinley) Tata Global Beverages (Tata water plus) Kingfisher Mineral water Gurgaon (Haryana) Hyderabad Karnataka Beverages (Fruit drinks, Nectars, Sparkling drinks and Carbonated soft drink), Packaged Drinking Water, Foods and PET Preforms Bonaqua packaged drinking water, Kinley Club Soda and BURN energy drink. Nutrient water contains nutrients, such as copper and zinc Mineral water bottle Railneer (IRCTC) New Delhi Bottled water Qua Mumbai Mineral bottled water The top 5 players in Indian packaged bottled market are Bisleri, PepsiCo, Coca-Cola, Parle and Dhariwal with 67% market share of the sector. Gujarat Leading Players Gujarat companies Gujarat Ion Exchange and chemicals limited Dhariwal Industries Ltd Bisleri (Gujarat unit) Gujarat manufacturers Shreeji Projects Aquaion Technology Inc. Ocean Techno Potential Collaboration Potential collaboration opportunity with Indian Centre for Plastic in the Environment (ICPE) for PET plastic bottle collection drive Page 8

Gujarat - Competitive Advantage Over the years, Gujarat has emerged as one of the front running states in adopting bottled water for water sourcing and many private and technological players have

9 Gujarat - Competitive Advantage Over the years, Gujarat has emerged as one of the front running states in adopting bottled water for water sourcing and many private and technological players have entered the Gujarat market for bottled water. First state to address the water waste issue and brought treatment, stabilization and disposal facility for cluster of industries. Gujarat provides 100 litre daily rural water supply per head against the country average of 55 litres Gujarat is one of state in which local players from bottled water market are giving competition to the established player. Located on the west coast of India, Gujarat is well connected to the major cities of the world by air and sea routes. This eases the knowledge and technology transfer capabilities Gujarat governments' initiatives to flourish the water market 5 major cities including Ahmedabad, Gandhinagar, Surat, Vadodara and Rajkot has the maximum market share in bottled water market 40% of the total Indian bottled water market is from Gujarat where many local and private companies has catered the market. more than 300 local and private companies for packaging water pouches and bottles in the state. Among top 5 states in India in terms of water storage capacity per unit land area Policy Initiatives Bureau of Indian Standards has established bottled water plant standards for the Indian bottled drinking water and every bottled drinking water plant are mandated to follow the standards. Gujarat pollution control board carries out Ambient Air Quality Monitoring programme to monitor ambient air quality and water quality. Page 9

Gujarat - Competitive Advantage Ease of Doing Business: Only state which comply 100% with environmental procedures.

petrochemical, auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc.

pharmaceuticals market at 22.4% surpassing the industry growth rate of 10.9% Gujarat contributes around 19.1% to India s total exports of goods in 2014-15 Gujarat, with 42.

10 Gujarat - Competitive Advantage Ease of Doing Business: Only state which comply 100% with environmental procedures. Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a construction permit Key industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical, auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc. Gujarat ranked first in ease of doing business as per DIPP report 2015 Gujarat has attracted cumulative FDI worth US$12 b from April 2000 to March 2015 Gujarat clocked the highest growth rate in pharmaceuticals market at 22.4% surpassing the industry growth rate of 10.9% Gujarat contributes around 19.1% to India s total exports of goods in Gujarat, with 42.6% of its population residing in the urban areas, is among the top three urbanized states in the country Gujarat is one of the power surplus states in the country, as a result it helps in bringing huge amount of investment from the industries and tagged as preferred investment destination in the country Skill development industry in the state is well-developed with many technical institutions (786 ITI s and 52 Skill upgradation centres) Page 10

11 Project Information Site Location Setting up of watering plant at Gandhinagar The Sabarmati, the Khari and the Meshwo are important rivers of the district. Narmada canal is the artificial drainage in Gandhinagar. Net ground availability in the district is 453 MCM based on 2011 dynamic ground water resources. The project details are as follows: Locations Gandhinagar, Gujarat India Gandhinagar district is an administrative division of Gujarat, the state capital. It is well connected to Ahmedabad by the Sarkhej- Gandhinagar highway, and with Vadodara by the Ahmedabad-Vadodara highway. The total population of Gandhinagar is 206,167 and total area is sq. km Gandhinagar geographical coordinates Gandhinagar, the capital city of Gujarat, India with geographical coordinates area North, East. Gandhinagar Temperature Maximum temperature : 38 C Minimum temperature : 10 C Page 11

Project Information Infrastructure availability / connectivity Air Road Gujarat has highest number of operating airports in India including 16 Domestic and 1 international

Road connectivity increases the efficiency for water networks and monitoring particularly in remote areas.

Gujarat handles around 73% of India s non-major port traffic and around 14% of India s major port traffic.

Gandhinagar. IT automation system will help better monitoring in Gandhinagar plant.

12 Project Information Infrastructure availability / connectivity Air Road Gujarat has highest number of operating airports in India including 16 Domestic and 1 international airport. Gandhinagar airport is at the distance of 490 km from the Ahmedabad airport. Gandhinagar is well connected with district roads, state highways and national highways NH-8. Road connectivity increases the efficiency for water networks and monitoring particularly in remote areas. Port IT Port Connectivity is available with three ports Kandla, Mundra & Pipavav from Gandhinagar. Gujarat handles around 73% of India s non-major port traffic and around 14% of India s major port traffic. Gujarat State Wide Area Network is the largest IP network in Asia Pacific region and second largest in the world; connecting 33 districts and 248 talukas of Gujarat with Gandhinagar. IT automation system will help better monitoring in Gandhinagar plant. The State Government ensures robust physical/industrial infrastructure & utility linkages Water Gujarat has a state wide water supply grid spread across 1,20,769 km that aims to serve 75% of the Gujarat s population. Power Gujarat boasts of 24 hours 3- phase uninterrupted power supply under the Jyotigram Yojana. Gujarat Energy Transmission Corporation Limited (GETCO) Is an electrical power transmission company with total of 1473 no pf substation for 400 KV, 220 KV, 132 KV and 66 KV system voltage. Page 12

13 Project Financials Packaged Drinking Water Plant Capacity 5000 LPH Equipment s/components Chlorine Dosing Pump 1 SMBS Dosing Pump 1 Raw Water Booster Pump 1 Pressure Sand Filter 1 Activated Carbon Filter 1 Dosing Pump 1 Micron Filtration 3 Reverse Osmosis (Micron Cartridge Filter, High Pressure Pump, RO Housing / Pressure Tube, Reverse Osmosis Membrane, Control Panel, Conductivity Meter, Low Pressure Switch, High Pressure Switch, Valves, Cleaning in Place System, Skid, Inter-connection Pipeline TDS Control System (Micron Cartridge Filter, Ultra-Violet System) Storage Tank for Storing Treated Water 1 Feed / Transfer Pump 1 UV Sterilizer Units 1 Ozonisation Unit with Re pressurization Pump 1 Ozone Ventury with Static Mixture 1 Ozonator With O2 Gen. 1 Storage Tank (Final / RO Water ) 1 Units 1 1 Pet Bottle Stretch Blow Molding Machine Units Pet Stretch Blow Molding 1 Air Compressor 1 Compressor Air Dryers & Filters 1 Chiller for Mold cooling 1 Bottle Mold 1 Page 13

14 Project Financials Cost structure of developing a water bottling plant in Gandhinagar The water treatment plant is considered of 5000 LPH capacity comprising of complete system with Pre-treatment, reverse Osmosis Unit and Post Treatment Packaged Drinking Water Plant Capacity 5000 LPH Equipment s/components Total Price (USD) Mineral Water Plant comprising of complete Treatment Plant as per Treatment Scheme & Equipment Schedule (Capacity 5000 LPH) 25, litre bottle rinsing, filling & capping machine (fully automatic) Capacity - 40 BPM (2400 BPH) 18, Ink jet Batch coding machine Pet Stretch Blow Molding Machine -1 QTY Double cavity (Semi-automatic)( bph) 8, Compressor for above machine along with chiller 5, Laboratory equipment's, Chemicals, Medias & Glassware as per BIS requirements. 5, BIS Marking + outside lab testing fee+ application charges 7, Cost for interconnecting (from Plant to Filling Machine) & Recirculation pipe work Raw water, storage other than specified above, all Civil & Electrical work, Labours, Tools & tackles, Raw materials,other plumbing works, pumps other than specified above & Pipe work from final water Tank to filling machines etc. Land lease rent & development ( sq.m x 36x100) 3,07, ,53, , Total 5,61, Note: The financial indicators are subject to assumptions and case sensitive 1 USD - INR 65 Approximate cost for all the equipment/ study is estimated to be around USD 0.6 million The calculation of total price is based on the primary research and discussion with various vendors. The total price can vary based on quantity and need of additional equipment's. Page 14

15 Project Financials Project Structure & Implementation Models Scope of work for government institution Proposal from Government of Gujarat ISI certification from Bureau of Indian Standards (BIS) Technical consultant is hired for feasibility studies An industry partner to be selected through bidding process Establishment of bottling plant as per contract terms Industry partner to operated the plant for fixed amount of time as per contract terms Terms for the Sanction of Financial Support by the Government of Gujarat Local Board of Governance to oversee the implementation and operations of the plant and project outcomes Land to be provided by the government To provide all the approvals to the project developer such as land and environmental Monthly instalment payment to the agency by the government on an 1 MLD basis Scope of work for industry partner Detailed design of the capital works to be undertaken The company or selected bidder shall be responsible for overall operation and maintenance of the project and in accordance with the long-term procurement between the Concessionaire and the Authority Identifying and tendering out the construction and mechanical equipment activities such as RO membranes, automation and control system etc. Executing the complete construction and to ensure 100% individual house service connections in the demonstration zones Key considerations The quantity of Packaged Drinking Water Project available for purchase depends on plant capacity, the operator s commitments to other purchasers, and several other factors, including price, reliability concerns and risk tolerance. Maintenance must be done on regular basis The industry partner not to grant any third party to obtain any entitlement to the Product water supplied by the facility System is designed to produce water as per International Bottled Water Association (IBWA), Bureau of Indian Standards (BIS) and US Drinking Water Act (USDWA). A degree of technical skill for selection of process conditions and adhesive/resins Reduction in Start-up and Operating Wastages Uninterrupted Power supply Page 15

16 Project Information Manpower requirement Responsibility Number General Manager 1 Secretary and Accountant 2 Production & Technic 2 Sales man 5 Quality Control and Supervisor 4 Operators 6 Bottle Inspectors 2 Forklift Operators 2 Electrician and Mechanics 2 Store keepers 2 Store Labourers 5 Guards 2 Total 35 Components by Government Storage Tank Testing Lab Plant land Provided by Private player Water Booster Pump Multi Media Filter Dosing Pump Page 16 Micron Filtration Reverse Osmosis Sand Filters

17 Approvals / Incentives Approvals Required Packaged water market in India is regulated and it is compulsory for all the manufacturers who intend to set up processing units, to obtain the ISI mark from the Bureau of India Standards. Packaged Natural Mineral Water is governed under IS:13428 and Packaged Drinking Water governed under IS: Small scale industries registration ISI certification from Bureau of Indian Standards (BIS) Pollution control certificate Water test report from an authorized laboratory of raw water Pest control certification Certificates from chemist, microbiologist Medical certificates for workers No objection certificate (NOC) from Gram Panchayat, if applicable Registration of trademark Documents related to ownership of land/lease of land for setting up the plant Memorandum of association of companies/partnership deed, if applicable. Electrical load sanction Sanction layout plan Incentives from Government of Gujarat Bureau of Indian Standards (BIU) has published two Indian Standards for Packaged Drinking Water is IS14543 and for Packaged Natural Mineral Water is IS It describes specifications and hygiene requirements to set up a bottling plant in India. Any plant in Gujarat also has to follow the standard specification and plant need the licence from BIU. Financial assistance for skill development centres, for technology acquisition and also for supporting energy and water conservation as well as for environmental compliance. Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income Tax Act for development, operation and maintenance of power plants, airports, ports, waste management facilities, water treatment plants, etc. is available to the developer. Gujarat Infrastructure Development Board (GIDB) in their vision BG:2020 facilitate the government regarding water issues and also to plan the future requirements. Gujarat industrial policy 2015, MSME provides interest subsidiary of 5% with maximum amount of 25 lakhs for 5 years in Municipal area and 7% with 30 lakhs for the other areas. Page 17

Gujarat Water Supply & Sewerage Board https://gwssb.gujarat.gov.in/ Gujarat Pollution Control Board, Government of Gujarat http://gpcb.gov.in/ Gujarat Water Infrastructure Limited http://www.gwil.

in/ Gujarat Water Resources Development Corporation https://guj-nwrws.gujarat.gov.

18 Gujarat Water Supply & Sewerage Board Gujarat Pollution Control Board, Government of Gujarat Gujarat Water Infrastructure Limited Gujarat Infrastructure Development Board Gujarat Industrial Development Corporation Gujarat Water Resources Development Corporation This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision. Gujarat Water Supply Sewerage Board "Jal Seva Bhavan" Opp. Air Force Station, Sector - 10A, Gandhinagar Office : , msgwssb@gmail.com

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