Step-by-Step Guide to Setting Up a Mineral Water Plant in India (Cost, Licenses & ROI)

So, you’re thinking of starting a mineral water plant business? Smart move. With rising health awareness, urbanization, and demand for safe drinking water, India’s packaged water industry is booming. But here’s the catch — success depends on how well you set it up.

As mineral water plant manufacturers Metson Machines have helped dozens of entrepreneurs build plants across India, we know the common doubts:

  • How much does it really cost?

  • What licenses do I need?

  • What’s the return on investment?

  • Which machine should I pick — automatic or semi-automatic?

Let’s break it down step by step (without the jargon).

Step 1: Do Your Homework (Market Research)

Before buying machines, ask yourself:

  • Who will buy my water? (Retail shops, corporates, hotels?)

  • What’s the competition charging? (₹10–₹20/litre range is common)

  • What’s my distribution plan? (Distribution often eats up 30–40% of effort).

Pro Tip from the Metson Machines as manufacturer: We always advise clients to create a mini feasibility report — this avoids nasty surprises later.

Step 2: Decide Your Plant Capacity

This is where many startups go wrong — they either under-invest and can’t meet demand, or they over-invest and machines stay idle.

Here’s a thumb rule:

  • Small scale → 1000–2000 LPH → Best for startups in local areas.

  • Medium scale → 3000–5000 LPH → Good for regional supply.

  • Large scale → 10,000+ LPH → National brands, aggressive expansion.

We help our customers match their demand with investment so the plant doesn’t become a white elephant.

Step 3: Location & Infrastructure

Think of your plant like a restaurant — location matters.

  • Minimum 1000–1500 sq. ft. for small plants.

  • Reliable electricity and water source (borewell or municipal).

  • Dust-free, hygienic environment (BIS inspectors are very particular).

Step 4: Licenses & Legal Approvals

Yes, paperwork is a challenge, but without it, you can’t sell a single bottle.

Here’s the must-have checklist:

  • BIS Certification (IS 14543) – non-negotiable.

  • FSSAI License – ensures food safety compliance.

  • Pollution Control Clearance – for water extraction/disposal.

  • ISI Mark Certification – for packaged water.

  • GST Registration – to operate legally.

  • Trade License – from local municipal body.

Our Role: Many of our clients get stuck here, so we offer license assistance as part of the turnkey solution.

Step 5: Machinery & Equipment You’ll Need

Here’s what goes inside a professional mineral water plant (and yes, we supply all of it):

  • RO + UV + Ozonation Water Treatment Plant (the heart of the setup).

  • Bottle Washing, Filling & Capping Machine.

  • Blow Molding Machine (for PET bottles).

  • Labeling & Shrink Wrapping Machine.

  • Laboratory Equipment (mandatory for BIS testing).

We don’t just sell machines; we design turnkey projects with installation, training, and after-sales support.

Step 6: Investment & Costing

Here’s the part you’ve been waiting for:

  • Small Plant (2000 LPH, semi-auto) → ₹12–18 Lakhs.

  • Medium Plant (5000 LPH, fully auto) → ₹40–60 Lakhs.

  • Large Plant (10,000+ LPH, fully auto) → ₹1.2–1.5 Crores.

Other costs to remember: land, construction, manpower, licenses, and working capital.

Step 7: ROI & Profitability

Let’s crunch numbers with a simple example:

  • Cost of production: ₹6–₹8 per liter (water, electricity, packaging).

  • Market selling price: ₹12–₹20 per liter.

  • Net margin: 40–50%.

Most entrepreneurs recover investment in 18–24 months, provided distribution is strong.

Step 8: Common Mistakes to Avoid

We’ve seen new owners make these errors (don’t be one of them):

  • Buying cheap machines → leads to breakdowns and rejections.

  • Ignoring BIS/FSSAI compliance → plant shutdown risk.

  • Underestimating marketing/distribution → the product won’t “sell itself.”

  • No after-sales support → machinery downtime kills profits.

Final Word (From Your Manufacturer Partner)

Starting a mineral water plant in India isn’t just about buying machines. It’s about:

  • Planning smart.

  • Choosing the right capacity.

  • Staying compliant with laws.

  • Ensuring after-sales support.

As manufacturers, we don’t just sell machines but we build businesses. From design to installation, training to licensing help, we’re with you at every step.

If you’re planning to start your own mineral water brand, we can help you turn your idea into a profitable running plant. Contact us now and set your first plant with us.

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