Ghana has both small and large scale industries that pack and machine-seal sachet water and also offer bottled water to consumers. This water is referred to as “pure water” by many of the locals.
The sachet/bottle water industry in Ghana is vibrant and highly profitable sector since there is always ready market demand for the product of the industry. Producers and distributors/retailers/vendors usually make close to (sometimes even more than) 100% profit on their sales (Okioga, 2007).
As a result there has been a proliferation of sachet water producing companies all across the country due to the relatively low start-up capital required. However bottle water production is highly capital intensive and is therefore mostly undertaken by large companies that possess the required financial and technical resources.
The small scale industries usually have much smaller distribution coverage, more often distributing their products in and around the towns/communities where their factories are located. The factories usually produce between 15000 sachets (500 bags) to 45000 (1500 bags) sachets per day.
The Ghana National Service Scheme (GNSS) quest of job creation and income generation through the delivering of skills in entrepreneurship of its teeming service personnel, therefore intends to set up a mineral water processing project to bottle and package water into sachets for the local market. The project would be located at Midie in the Greater Accra region.
The GNSS water project will be operating 5 days every week. Its capacity will be 38,400bags of sachet water and 10,667 cartons of bottled water per month in the first year, operating at 80% of the installed capacity of 1800 sachets and 2000 bottles per hour. This will progress steadily at 5% per annum to full capacity in the fifth year and afterwards the quantity would be produced till the tenth year.
The financial Plan for the project will cost GH¢2,672,747.23. The National Service Scheme has already invested GH¢1,175,000.00 which forms 44.0% of the project cost in putting up the structure which is about 90% complete and the drilling of two boreholes. An additional investment of GH¢ 1,497,747.23 which forms 56.0% of the total cost would be required to complete the structure, purchase operating equipment, raw materials, etc.
The estimated annual revenues to be realized from the project in the next 10 years ranges from GH ¢3,010,560.00 in year one to GH¢5,676,859.88 in year ten. In our estimation 5% annual increases in price levels were assumed. The Scheme is therefore by this medium inviting all potential investors to come and invest in this beautiful venture.