“Every day people drink water. Few people make money from it.”
Why people should start this business:
• Water is a daily necessity, not a luxury
• Recurring income from the same customers every month
• Low startup cost (₹1.5L–₹4L) compared to other businesses
• High margins (35–50%) with predictable demand
• Works best in middle-class areas, hostels, PGs, offices
• Low marketing spend — word of mouth drives growth
• Easy to scale locally by adding routes and jars
• Cash-flow positive business with quick break-even
STEP 1: UNDERSTAND THE BUSINESS MODEL
You install an RO water purification plant and sell:
• 20-litre water jars
• Refill service to homes, hostels, PGs, offices, shops
Pricing:
• ₹30–₹60 per 20L jar (location dependent)
• Monthly customers = recurring income
Startup Cost: ₹1.5L – ₹4L
Profit Margin: 35–50%
STEP 2: LOCATION SELECTION (MOST IMPORTANT)
Best areas:
• Middle-class residential colonies
• Hostels / PG clusters
• Near colleges, hospitals, factories
Space required:
• 150–300 sq. ft.
• Ground floor preferred
• Borewell or municipal water access
STEP 3: LICENCES & REGISTRATIONS REQUIRED
Mandatory:
Local Municipal Trade License
FSSAI Registration (Basic is enough initially)
GST Registration (mandatory if selling packaged water jars)
Shop & Establishment Registration
Water Testing Report (from approved lab)
Optional but recommended:
• MSME / Udyam Registration
STEP 4: MACHINERY & SETUP COSTING
RO Plant (Commercial):
• 250–500 LPH RO plant
• Cost: ₹80,000 – ₹1.5L
Other setup:
• Storage tanks
• UV filter
• Pumps & pipelines
• Water jars (20L) – ₹250–₹350 each
• Initial 50–100 jars
Total Setup Cost:
₹1.5L (small setup)
₹4L (high-capacity setup)
STEP 5: PEOPLE REQUIRED
Initially:
• 1 operator (can be owner)
• 1 delivery person
Monthly cost:
• ₹12,000 – ₹18,000 per person
As business grows:
• Add 1 more delivery staff
STEP 6: PRICING & REVENUE MODEL
Example:
• 200 jars/day × ₹40 = ₹8,000/day
• Monthly revenue ≈ ₹2.4L
Monthly expenses:
• Staff: ₹30,000
• Electricity & water: ₹10,000
• Maintenance: ₹5,000
• Miscellaneous: ₹5,000
Estimated Net Profit:
₹80,000 – ₹1.2L per month
Profit Margin: 35–50%
STEP 7: TAXES & COMPLIANCE
• GST on packaged drinking water (as applicable)
• Income tax on net profit
• Maintain simple sales register
• File GST & ITR yearly
Tip: Hire a local CA for ₹1,000–₹2,000/month
STEP 8: MARKETING & CUSTOMER ACQUISITION
Low-cost methods:
• Posters near hostels
• Local WhatsApp groups
• Free 1st refill offer
• Tie-ups with PG owners
Retention:
• Monthly subscription model
• Fixed delivery timings
STEP 9: CHALLENGES TO EXPECT
• Initial customer trust
• Water quality consistency
• Jar loss or damage
• Seasonal demand fluctuation
• Local competition
How to handle:
• Regular water testing
• Clean jars & staff hygiene
• On-time delivery
STEP 10: WHY THIS BUSINESS WORKS
• Daily necessity product
• Repeat customers
• Low overhead
• Cash-flow positive
• High margins with scale
Middle-class areas and hostels rely on ₹30–₹720 water jar services, making demand steady and predictable.
FINAL STARTING POINT CHECKLIST
✓ Finalize location
✓ Arrange water source
✓ Apply for licences
✓ Install RO plant
✓ Buy jars
✓ Start delivery
✓ Scale via subscriptions
