Key Regulatory Change: BIS / ISI / Hallmark Not Required Anymore (for most packaged drinking water)
This is a critical recent change, which simplifies compliance. Below is a summary and link, and you can refer to the official notification as well:
On 17 October 2024, FSSAI amended the regulations such that BIS certification / ISI mark / hallmark is no longer mandatory for packaged drinking water / mineral water (in many cases). Instead, the requirement shifts to obtaining an FSSAI license / registration.
News coverage: “Packaged drinking water no longer requires BIS certification … FSSAI license now mandatory.”
Also: under the new regulation, packaged drinking water is categorized as “high-risk food” by FSSAI, which triggers stricter inspections and compliance checks.
Note: Some sources still discuss BIS / ISI as mandatory under older rules or in certain interpretations. (Always check the latest FSSAI / government notifications.)
Because BIS / ISI is no longer universally mandatory, this removes a major barrier (the “hallmark / BIS mark” requirement) in many cases — making entry simpler.
Thus, your main legal focus now is on FSSAI licensing / registration, meeting water quality standards, labeling, inspections, etc.
The Cost of Starting a water business
The cost of starting a water business in India depends a lot on scale, automation, location, and what kind of water product (packaged, purified, mineral, etc.) you’re aiming for. Here are some typical ranges and cost components:
Scale / Type | Estimated Investment |
|---|---|
Small‐scale/purification plant | ~ ₹5-10 lakh |
Basic bottled water plant (semi-automatic) | ~ ₹15-25 lakh |
Medium / more automated bottled water plant | ~ ₹50 lakh+ |
Large scale or fully automatic plant with high capacity | Can go above ₹100-120 lakh (i.e. ₹1-1.2 crore) or more |
Profit Margins & Revenue Examples
Scenario | Revenue per year | Net Profit Margin | Net Profit approx. |
|---|---|---|---|
Small‐scale mineral water plant (≈ 2,000 litres/day) | ₹1.5-2 crores | ~15-20% | ~ ₹30-40 lakh annually |
Medium plant producing ~8,000 bottles/day | ~ ₹1.94 crore | ~25-30% (after costs) | ~ ₹50 lakh/year |
Step-by-Step Guide to Starting a Packaged Drinking Water / Bottled Water Business in India
Here is a structured roadmap with important considerations, links, and recommended actions.
1. Market Research & Business Planning
Study your target geography (city, region). What is the demand? Who are existing brands (Bisleri, Aquafina, Kinley, local players)?
Identify your target segment: e.g. premium water, basic purified water, flavored water, bulk water (20L jugs), etc.
Estimate volumes, pricing, margins.
Plan your sales & distribution model: direct retail, supermarkets, offices, institutions, e-commerce.
Draft a financial projection: initial investment (land, machinery, utilities), operating costs (utilities, raw water, packaging, labor), revenue forecasts.
2. Select Location & Acquire Premises
Key criteria:
Reliable water source (borewell, municipal supply, spring) of adequate quantity and quality.
Adequate land / factory building with space for purification, bottling, packaging, storage, quality lab.
Good road / transport connectivity for distribution.
Utilities: stable electricity, power backup, drainage, waste disposal.
Zoning / industrial area norms, environmental clearances (if required).
3. Design Process Flow & Choose Technology / Machinery
You need to decide on the purification & bottling process, equipment, layout, capacity. Typical steps:
Raw water intake & storage
Pre-treatment: sediment filters, carbon filters, multimedia filtration
Reverse Osmosis (RO) / ultrafiltration / nano-filtration (depending on source)
UV disinfection / ozonation
Mineralization (if required)
Storage in sterile tanks
Bottling line: rinsing, filling, capping, labeling
Packaging / shrink wrap, packing
Quality control / testing lab
Waste / reject water disposal
You’ll need to source machinery (RO plants, bottling lines, pumps, tanks, etc.) from trusted vendors.
4. Legal Compliance, Licenses & Registrations
Since BIS / ISI hallmark is no longer universally mandatory (for packaged drinking water), your compliance burden reduces. But you still need to satisfy regulatory frameworks. Below is what you must do:
A. FSSAI License / Registration
You must register or obtain a license from FSSAI (Food Safety and Standards Authority of India). (fssaiindia.in)
The type of license depends on scale / turnover / interstate activity:
Turnover / Scope | Type of FSSAI License | Useful Links |
|---|---|---|
Small / Local business, turnover below ₹12 lakh | Basic Registration | |
Turnover between ₹12 lakh and ₹20 crore (within a single state) | State FSSAI License | |
Turnover above ₹20 crore or operations in multiple states | Central FSSAI License |
Use the online portal FoSCoS to apply for new / renewal / modification of licenses. (foscos.fssai.gov.in). You’ll need to fulfill documentation, premises layout, food safety management system, etc.
B. Environmental / Pollution Control
Depending on your location / scale, you may need Consent / Clearance from the State Pollution Control Board or relevant environment agency.
Waste discharge / reject water disposal must comply with environmental norms.
C. Local / Municipal Permissions
Factory license (if applicable) from local government / municipal authorities.
Fire safety certificate.
Other local business licenses depending on municipality.
D. Quality / Testing Compliance
You must test water batches in FSSAI / NABL-accredited labs to ensure compliance with standards.
Maintain records of tests, quality checks.
Comply with labeling rules under FSSAI / Water Manual (e.g. “WATER MANUAL – FoSTaC (FSSAI)” document has guidelines). (fostac.fssai.gov.in)
Ensure hygiene, cleaning, cross-contamination controls.
E. Inspection & Audits
Since packaged drinking water is now high-risk, FSSAI will do inspections, audits, and compliance checks.
5. Labeling, Branding & Packaging Standards
Label must include: product name (e.g. “Packaged Drinking Water”), manufacturer name & address, batch/lot number, date of packaging, “best before” or expiry, FSSAI license / registration number, usage instructions, etc.
Even if BIS / ISI mark is optional now, if you choose to acquire BIS certification for marketing advantage, you must follow BIS standards.
Packaging material must be food-grade, safe, minimal leaching, properly sealed.
6. Pilot / Trial Production & Quality Checks
Run trial batches, test them thoroughly.
Validate shelf life, packaging robustness.
Rectify any leaks, microbial contamination, odor, etc.
7. Scale-Up, Distribution & Sales
Set up distribution network: wholesalers, retailers, offices, institutions, hotels.
Plan logistics, delivery vehicles, supply chain.
Marketing & branding: packaging, brand identity, social media, tie-ups, sampling.
Maintain inventory, stock rotations.
8. Operations, Monitoring & Compliance Management
Implement a food safety management system (HACCP, GMP).
Continual testing, audits, record-keeping.
Compliance with inspections, renewals, traceability.
Handle customer feedback, recalls (if needed).
9. Expansion & Diversification
Once stable, you might expand into new volumes (bottles, pouches, bulk), flavored water, mineral / ionic water, export.
Consider seeking BIS / voluntary certification (if beneficial) for branding / premium positioning.
Important Links & Resources
FSSAI / FoSCoS portal (for license / registration) — Home / Document section: FoSCoS – FSSAI (foscos.fssai.gov.in)
FSSAI “Packaged Drinking Water Company” license information page (fssaiindia.in)
Water Manual (FSSAI / FoSTaC) — for hygienic practices, labeling, etc. (fostac.fssai.gov.in)
DCMSME “Packaged Drinking Water” PDF (industry / guidelines) (dcmsme.gov.in)
News / blogs on the change (BIS removed) — e.g. “Packaged drinking water no longer requires BIS …” (MokokchungTimes.com)
Risks, Challenges & Tips
Even though BIS is removed, you must maintain high quality — regulatory scrutiny is higher for “high-risk food.”
Ensure strict hygiene, traceability, documentation — any violation can lead to license revocation.
Reject water disposal (RO reject) and waste handling can be a cost and regulatory issue.
Competition is steep. Branding, trust, distribution are critical.
Price sensitivity among customers — keeping cost low while ensuring quality is a balancing act.
Stay updated with FSSAI notifications / changes in regulation.
Summary Checklist (Condensed)
Market research & business plan
Acquire location with clean water source
Design purification & bottling process
Procure equipment / machinery
Apply for FSSAI registration / license via FoSCoS
Obtain local / environment / factory / municipal permits
Develop labeling / packaging as per FSSAI guidelines
Conduct trial batches & quality testing
Start distribution & sales
Ongoing compliance, audits, inspections
