PROJECT REPORT

Of

WATER PURIFICATION & DISTRIBUTION

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Water Purification & Distribution.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
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Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 WATER PURIFICATION & DISTRIBUTION UNIT

Water purification is the process of removing undesirable

chemicals, biological contaminants, suspended solids, and
gases from water. The goal is to produce water fit for specific
purposes. Most water is purified and disinfected for human
consumption (drinking water), but water purification may also
be carried out for a variety of other purposes, including medical,
pharmacological, chemical, and industrial applications. The
methods used include physical processes such
as filtration, sedimentation, and distillation; biological processes
such as slow sand filters or biologically active carbon; chemical
processes such as flocculation and chlorination; and the use of
electromagnetic radiation such as ultraviolet light.
Water purification may reduce the concentration of particulate
including suspended particles, parasites, bacteria, algae,
and fungi as well as reduce the concentration of a range of
dissolved and particulate matter.
The standards for drinking water quality are typically set by
governments or by international standards. These standards
usually include minimum and maximum concentrations of
contaminants, depending on the intended use of the water.

PH Adjustment
Pure water has a pH close to 7(neither alkaline nor acidic). Sea
water can have pH values that range from 7.5 to 8.4
(moderately alkaline). Fresh water can have widely ranging pH
values depending on the geology of the drainage
basin or aquifer and the influence of contaminant inputs (acid
rain). If the water is acidic (lower than 7), lime, soda ash,
or sodium hydroxide can be added to raise the pH during water
purification processes. Lime addition increases the calcium ion
concentration, thus raising the water hardness. For highly
acidic waters, forced draft degasifies can be an effective way to
raise the pH, by stripping dissolved carbon dioxide from the
water. Making the water alkaline
helps coagulation and flocculation processes work effectively
and also helps to minimize the risk of lead being dissolved from
lead pipes and from lead solder in pipe fittings. Sufficient
alkalinity also reduces the corrosiveness of water to iron pipes.

Franchisee
This unit is established after taking franchisee from Piramal
water Pvt. Ltd. (Sarvajal).
Piramal Sarvajal, seeded by the Piramal Foundation in 2008, is
a mission driven social enterprise which designs and deploys
innovative solutions for creating affordable access to safe
drinking water in underserved areas. Sarvajal is at the forefront
of developing technologies and business practices in the safe
drinking water sector that are designed to make a purely
market-based model sustainable in both rural and urban
deployment conditions.

Types of water Units

1. RO Unit
2. Water ATM: Water ATMs are automated water dispensing
units, which provide communities with 24/7 safe water
access. They are solar powered and cloud connected, thus
enabling remote tracking of the water quality and of each pay
per use transaction.
Process of water Purification

1. Aeration:
 Raw water is first collected in large aeration tank and the
water is aerated by bubbling compressed air through
perforated pipes.
 Aeration removes bad odors and CO2. It also removes
metal such as iron, manganese by precipitating then as
their respective hydroxides.

2. Storage or settling:
 Aerated water is then placed in settling tank and stored for
10-14 days.
 During storage about 90% of suspended solids settle down
within 24 hrs and the water becomes clear.
 Certain heavier toxic chemicals also settle down during
storage.
 Similarly pathogenic bacteria gradually die and bacterial
count decreases by 90% in first in first 5-7 days of storage.
  During storage organic matter present in water is oxidized
by microorganisms. Similarly NH3 present is oxidized into
nitrate by microorganisms during storage.

3. Coagulation:
 Water from storage tank is then placed in coagulation tank
and then some precipitating agents such as alum, lime etc
are added in water and mixed.
 These precipitating agents form precipitate of Al(OH)3
when dissolved in water.
 Suspended solids absorbs on the surface of precipitate, so
gradually mass of precipitate becomes heavier and finally
settle down.
 This technique is used to remove very light suspended
solids that do not settle by themselves during storage.
Furthermore, if negatively charged colloidal impurities are
present, they are neutralized by Al+++ ions and settle
down.

4. Filtration:
 Partially clarified water is then passed through sand gravity
filter which removes 98-99% of microorganisms and other
impurities.
 Sand gravity water filter:

 Sand filter is a rectangular tank in which filter bed is

made up to 3 layers.
 Top layer: fine layer of 1 meter thick

 Middle layer: 0.3-0.5 meter thick layer of coarse sand

 Bottom layer: 0.3-0.5 meter thick layer of gravel

 There is a collection tank at the bottom of the filter bed to

collect filtered water. During filtration filter bed soon gets
covered with a slimy layer called vital layer.
 Vital layer consists of thread like algae, diatoms and
bacteria.
  During filtration microorganisms presents in vital layer
oxidize organic and other matter present in water. For
example if NH3 is present, it is oxidized into nitrate.
 Vital layer also helps in filtration of microbial cells.
 If water contains unpleasant odor, activated carbon may be
placed in filter bed that removes bad odors.

5. Disinfection:
 The filtered water is finally purified by using disinfectants.
Eg. Chlorination
 Disinfectant kills pathogenic as well as other
microorganism in water.
 After disinfection water is pumped into overhead tank for
subsequent domestic distribution.

Machinery & Equipment Required

Machinery

S.N. Particulars Amount

1 RO unit 336,286.00
2 Chillar 100,000.00
3 Vehicle 400,000.00
4 Camper 150,000.00
Total 986,286.00

Land & Building Required

Building & civil work

S.N. Particulars Amount

1 Land Construction 300,000.00

2 Borewall 50,000.00

Total 350,000.00
Labour Requirement:

4 Manpower is required for the Water purification & distribution unit.

Includes:

3 daily Labour

1 Driver

Water Purification Unit License &registration

For Proprietor:
 Obtain the GST registration.
 Additionally, take the Udyog Aadhar registration.
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)
1 Acquisition Of premises 1
2 Construction (if Applicable) 1- 2 Months
3 Procurement & installation of Plant & Machinery 1
4 Arrangement of Finance 1
5 Requirement of required Manpower 1
Total time Required (some activities shall run 2-3 Months
concurrently)
 FINANCIAL ASSISTANCE REQUIRED

Term Loan of Rs. 12.48 Lacs and Working Capital limit of Rs. 2.50 Lacs

COST OF
PROJECT PARTICULARS AMOUNT AMOUNT AMOUNT
10.00% 90.00%

Building Civil Work 3.50 0.35 3.15

Plant & Machinery 9.86 0.99 8.88

Furniture & Fixtures and Other
Assets 0.50 0.05 0.45

Working capital 2.78 0.28 2.50

Total 16.64 1.66 14.98

MEANS OF
FINANCE PARTICULARS AMOUNT

Own Contribution 1.66

Bank Loan 12.48

Working capital Limit 2.50

Total 16.64
COMPUTATION OF PROCESS OF WATER

Items to be Sale

Purified Water

machine capacity per day 3000 Litre

machine capacity per annum 1080000 KG

1 Water ATM

Per ATM capacity per day 750 Liter

Total ATM capacity per Annum 270000 Liter

Water Sales (RO unit +Soochak)

Production Capacity water

1st year 70% 756,000

2nd year 75% 810,000

3rd year 80% 864,000

4th year 85% 918,000

5th year 90% 972,000

ATM Water

Production Capacity water

1st year 70% 189,000

2nd year 75% 202,500

3rd year 80% 216,000

4th year 85% 229,500

5th year 90% 243,000

Fee & tax cost per Liter on RO unit + Soochak

Year Capacity Amount

Utilisation Per litre cost (Rs. in lacs)

1st year 70% 0.087 0.66

2nd year 75% 0.087 0.70

3rd year 80% 0.087 0.75

4th year 85% 0.087 0.80

5th year 90% 0.087 0.85

Fee & tax cost per liter on water ATM

Year Capacity Amount

Utilisation Per litre cost (Rs. in lacs)

1st year 70% 0.067 0.13

2nd year 75% 0.067 0.14

3rd year 80% 0.067 0.14

4th year 85% 0.067 0.15

5th year 90% 0.067 0.16

COMPUTATION OF SALE (Water , RO unit+ soochak)

Particulars 1st year 2nd year 3rd year 4th year 5th year

Process 756,000 810,000 864,000 918,000 972,000

Net Sale 756,000 810,000 864,000 918,000 972,000

sale price per Liter 1.50 1.50 1.50 1.50 1.50

Sales (in Lacs) 11.34 12.15 12.96 13.77 14.58

COMPUTATION OF WATER ATM SALES

Particulars 1st year 2nd year 3rd year 4th year 5th year

Process 189,000 202,500 216,000 229,500 243,000

Net Sale 189,000 202,500 216,000 229,500 243,000

sale price per Liter 1.00 1.00 1.00 1.00 1.00

Sales (in Lacs) 1.89 2.03 2.16 2.30 2.43

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Per Month Employees Salary

Daily labour 8000 3 24000

driver 9000 1 9000

Total Salary Per Month 33000

Total Annual Labour Charges (in Lacs) 3.96

Utility Charges at 100% capacity (per month)

Particulars value Description

Power cost per liter 0.03 Rs.

consumption per Annum 1350000 Liter

power Bill per month 40500 Rs.

PROJECTED PROFITABILITY STATEMENT (in lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilisation % 70% 75% 80% 85% 90%

SALES

Gross Sale

RO Unit+ Soochak 11.34 12.15 12.96 13.77 14.58

ATM Water 1.89 2.03 2.16 2.30 2.43

Total 13.23 14.18 15.12 16.07 17.01

COST OF SALES

Raw Material Consumed 0.78 0.84 0.90 0.95 1.01

Electricity Expenses 0.41 0.45 0.49 0.54 0.59

Depreciation 1.88 1.62 1.39 1.20 1.03

Consumables 0.23 0.24 0.26 0.28 0.29

Repair & maintenance 0.28 0.30 0.32 0.34 0.36

Labour 3.96 4.36 4.79 5.27 5.80

Water 0.26 0.28 0.30 0.32 0.34

other direct expenses 0.46 0.50 0.53 0.56 0.60

Cost of Production 8.27 8.59 8.99 9.47 10.03

GROSS PROFIT 4.96 5.59 6.13 6.60 6.98

Interest on Term Loan 1.11 0.98 0.70 0.43 0.13

Interest on working Capital 0.28 0.28 0.28 0.28 0.28

Selling & Adm expenses 0.40 0.43 0.45 0.63 0.66

TOTAL 1.79 1.68 1.43 1.33 1.07

NET PROFIT 3.18 3.91 4.70 5.27 5.92

Taxation 0.06 0.19

PROFIT (After Tax) 3.18 3.91 4.70 5.21 5.73

PROJECTED BALANCE SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 2.34 3.50 5.20 6.91

Add:- Own Capital 1.66

Add:- Retained Profit 3.18 3.91 4.70 5.21 5.73

Less:- Drawings 2.50 2.75 3.00 3.50 4.00

Closing Balance 2.34 3.50 5.20 6.91 8.64

Term Loan 11.09 8.32 5.55 2.77 0.23

Working Capital Limit 2.50 2.50 2.50 2.50 2.50

TOTAL : 15.93 14.32 13.24 12.19 11.37

Assets

Fixed Assets ( Gross) 13.86 13.86 13.86 13.86 13.86

Gross Dep. 1.88 3.50 4.89 6.09 7.12

Net Fixed Assets 11.98 10.37 8.97 7.77 6.74

Current Assets

Sundry Debtors 2.21 2.36 2.52 2.68 2.84

Cash and Bank 1.74 1.59 1.75 1.73 1.80

TOTAL : 15.93 14.32 13.24 12.19 11.37

PROJECTED CASH FLOW STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 1.66

Net Profit 3.18 3.91 4.70 5.27 5.92

Depreciation & Exp. W/off 1.88 1.62 1.39 1.20 1.03

Increase in Cash Credit 2.50 - - - -

Increase In Term Loan 12.48 - - - -

TOTAL : 21.70 5.52 6.09 6.47 6.95

APPLICATION OF FUND

Increase in Fixed Assets 13.86

Increase in Debtors 2.21 0.16 0.16 0.16 0.16

Repayment of Term Loan 1.39 2.77 2.77 2.77 2.54

Drawings 2.50 2.75 3.00 3.50 4.00

Taxation - - - 0.06 0.19

TOTAL : 19.95 5.68 5.93 6.49 6.89

Opening Cash & Bank Balance - 1.74 1.59 1.75 1.73

Add : Surplus 1.74 (0.16) 0.16 (0.02) 0.06

Closing Cash & Bank Balance 1.74 1.59 1.75 1.73 1.80
COMPUTATION OF WORKING CAPITAL

Turnover Method (In Lacs)

(i) Projected Sales 13.23

(ii) Working Capital Requirement 3.31

25% of Projected Sales

(iii) Margin 0.66

5% of Projected Sales

(iv) MPBF 2.65

Working Capital Limit Required 2.50

COMPUTATION OF DEPRECIATION

Description Building Plant & Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance - - - -

Addition 3.50 9.86 0.50 13.86

Total 3.50 9.86 0.50 13.86

Less : Depreciation 0.35 1.48 0.05 1.88

WDV at end of Year 3.15 8.38 0.45 11.98

Additions During The Year - - - -

Total 3.15 8.38 0.45 11.98

Less : Depreciation 0.32 1.26 0.05 1.62

WDV at end of Year 2.84 7.13 0.41 10.37

Additions During The Year - - - -

Total 2.84 7.13 0.41 10.37

Less : Depreciation 0.28 1.07 0.04 1.39

WDV at end of Year 2.55 6.06 0.36 8.97

Additions During The Year - - - -

Total 2.55 6.06 0.36 8.97

Less : Depreciation 0.26 0.91 0.04 1.20

WDV at end of Year 2.30 5.15 0.33 7.77

Additions During The Year - - - -

Total 2.30 5.15 0.33 7.77

Less : Depreciation 0.23 0.77 0.03 1.03

WDV at end of Year 2.07 4.38 0.30 6.74

s - - - -
Total 2.07 4.38 0.30 6.74

Less : Depreciation 0.21 0.66 0.03 0.89

WDV at end of Year 1.86 3.72 0.27 5.85

Less : Depreciation 0.19 0.56 0.03 0.77

WDV at end of Year 1.67 3.16 0.24 5.07

Less : Depreciation 0.17 0.47 0.02 0.67

WDV at end of Year 1.51 2.69 0.22 4.41

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 5.06 5.52 6.09 6.41 6.76

Interest on Term Loan 1.11 0.98 0.70 0.43 0.13

Total 6.17 6.51 6.80 6.84 6.89

REPAYMENT

Instalment of Term Loan 1.39 2.77 2.77 2.77 2.54

Interest on Term Loan 1.11 0.98 0.70 0.43 0.13

Total 2.50 3.75 3.48 3.20 2.67

DEBT SERVICE COVERAGE RATIO 2.47 1.73 1.96 2.14 2.58

AVERAGE D.S.C.R. 2.18

 REPAYMENT SCHEDULE OF TERM LOAN
Interest 10.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance

1st month - 12.48 12.48 - - 12.48

2nd month 12.48 - 12.48 0.10 - 12.48

3rd month 12.48 - 12.48 0.10 - 12.48

4th month 12.48 - 12.48 0.10 12.48

5th month 12.48 - 12.48 0.10 12.48

6th month 12.48 - 12.48 0.10 12.48

7th month 12.48 - 12.48 0.10 0.231 12.25

8th month 12.25 - 12.25 0.10 0.231 12.01

9th month 12.01 - 12.01 0.10 0.231 11.78

10th month 11.78 - 11.78 0.10 0.231 11.55

11th month 11.55 - 11.55 0.10 0.231 11.32

12th month 11.32 - 11.32 0.09 0.231 11.09

1.11 1.386
2nd Opening Balance

1st month 11.09 - 11.09 0.09 0.231 10.86

2nd month 10.86 - 10.86 0.09 0.231 10.63

3rd month 10.63 - 10.63 0.09 0.231 10.40

4th month 10.40 - 10.40 0.09 0.231 10.17

5th month 10.17 - 10.17 0.08 0.231 9.94

6th month 9.94 - 9.94 0.08 0.231 9.70

7th month 9.70 - 9.70 0.08 0.231 9.47

8th month 9.47 - 9.47 0.08 0.231 9.24

9th month 9.24 - 9.24 0.08 0.231 9.01

10th month 9.01 - 9.01 0.08 0.231 8.78

11th month 8.78 - 8.78 0.07 0.231 8.55

12th month 8.55 - 8.55 0.07 0.231 8.32

 0.98 2.773
3rd Opening Balance

1st month 8.32 - 8.32 0.07 0.231 8.09

2nd month 8.09 - 8.09 0.07 0.231 7.86

3rd month 7.86 - 7.86 0.07 0.231 7.62

4th month 7.62 - 7.62 0.06 0.231 7.39

5th month 7.39 - 7.39 0.06 0.231 7.16

6th month 7.16 - 7.16 0.06 0.231 6.93

7th month 6.93 - 6.93 0.06 0.231 6.70

8th month 6.70 - 6.70 0.06 0.231 6.47

9th month 6.47 - 6.47 0.05 0.231 6.24

10th month 6.24 - 6.24 0.05 0.231 6.01

11th month 6.01 - 6.01 0.05 0.231 5.78

12th month 5.78 - 5.78 0.05 0.231 5.55

0.70 2.773
4th Opening Balance

1st month 5.55 - 5.55 0.05 0.231 5.31

2nd month 5.31 - 5.31 0.04 0.231 5.08

3rd month 5.08 - 5.08 0.04 0.231 4.85

4th month 4.85 - 4.85 0.04 0.231 4.62

5th month 4.62 - 4.62 0.04 0.231 4.39

6th month 4.39 - 4.39 0.04 0.231 4.16

7th month 4.16 - 4.16 0.03 0.231 3.93

8th month 3.93 - 3.93 0.03 0.231 3.70

9th month 3.70 - 3.70 0.03 0.231 3.47

10th month 3.47 - 3.47 0.03 0.231 3.23

11th month 3.23 - 3.23 0.03 0.231 3.00

12th month 3.00 - 3.00 0.03 0.231 2.77

0.43 2.773
5th Opening Balance

1st month 2.77 - 2.77 0.02 0.231 2.54

2nd month - 0.02 0.231 2.31
 2.54 2.54

3rd month 2.31 - 2.31 0.02 0.231 2.08

4th month 2.08 - 2.08 0.02 0.231 1.85

5th month 1.85 - 1.85 0.02 0.231 1.62

6th month 1.62 - 1.62 0.01 0.231 1.39

7th month 1.39 - 1.39 0.01 0.231 1.16

8th month 1.16 - 1.16 0.01 0.231 0.92

9th month 0.92 - 0.92 0.01 0.231 0.69

10th month 0.69 - 0.69 0.01 0.231 0.46

11th month 0.46 - 0.46 0.00 0.231 0.23

12th month 0.23 - 0.23 0.00 0.231 -

0.13 2.54

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
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considering specific requirement of the project, capacity and type of plant and
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