Have you ever purchased a bottle of water when it is hot, when you are in a traffic jam, or when you are in a train station? Almost everybody in India. The business that the bottle belongs to is a vast and expanding one.
The Indians are becoming more health-conscious. They are aware of the fact that contaminated water would cause them to fall ill. Indeed, annually, nearly 37.7 million Indians fall sick with water-borne diseases.
Tap water can be unhealthy to consume. In a survey, it was discovered that safe tap water exists in only 2 per cent of Indian homes. This is the reason why people have confidence in bottled water.
This confidence generates a vast opportunity. The market of bottled water in India is valued at over USD 3.84 billion (over 30,000 crore) in 2024. It is expanding rapidly, almost 15 per cent per annum.
This may be a good idea if you desire to start a business. This manual is a step-by-step, plain-English guide on how to start a Bottled Water Business in India.
Why the Bottled Water Industry is Surging
The bottled water market is booming. There was not a large number of individuals who purchased bottled water thirty years ago. It is sold in the village shops, the city supermarkets, the hotels, the restaurants, the offices, and even at weddings.
Why is it growing so fast?
- Health & Safety: This is the key reason. Human beings do not want to fall ill due to tap water. A bottle that has not been opened is like pure, uncontaminated water.
- Travel: Increased travelling, both for work and holidays, has boosted demand. Bottled water is the safest and simplest to have in a train or a bus.
- Increasing Middle Class: As incomes rise, individuals are ready to pay a little more in order to be more convenient and safer.
- Bad Tap Water: Tap water is unreliable or insufficient in most locations, compelling individuals to purchase drinking water.
Bottled Water Market Metrics (India, 2025):
- Market Size: USD 9.5 billion in 2024, expected to grow further in 2025.
- Forecast Growth: Projected CAGR of ~12.45% from 2025‑2033.
- Premium Segment: Valued at USD 933.3 million in 2024, with a CAGR of ~8.7% through 2033.
- Packaging: PET bottles dominate, with the bottled water packaging market at USD 8,710.7 million in 2024, expected to grow at ~8.1% CAGR.
- Key Drivers: Rising health awareness, urbanisation, improved distribution networks, and concerns about tap-water safety.
It is not just 1-litre bottles of business. The market also has large 20-litre jars that are used at home and in offices. The jar market forms a significant segment of the industry.
Estimated Startup Costs for Bottled Water Plants
It is not an inexpensive operation to start a water plant. You require special machines and numerous government licences. It does not look like a small kitchen business; you have to have a proper factory.
The following is a rough table of the estimated cost of a small plant that will produce approximately 1,000 litres per hour. To have a legal small-scale plant, you will need to invest at least 35 lakh to 20 lakh.
| Investment Scale | Estimated Cost (₹) | Key Features / Notes |
|---|---|---|
| Small / Local RO Plant | 10 lakh – 25 lakh | Small-scale setup, local distribution, basic equipment, manual operations |
| Small-Medium Plant (Semi-Automatic) | 30 lakh – 80 lakh | Semi-automatic machinery, small bottling capacity, moderate branding & packaging |
| Medium-Large Plant (Automated) | 35 lakh – 1 crore+ | Full automation, larger production capacity, branded packaging, wider distribution |
| Additional Costs | Varies | Licenses (FSSAI, pollution control), land/rent, working capital, marketing, utilities |
Starting a Business with Bottled Water: Step-by-step Guide.
This is the plan you should follow in case you have the investment. Do not skip any steps!
Step 1: Market Research.
First, study your area and perform market research. Don’t start blindly.
- Who are your customers? Do you sell 1-litre bottles to stores and tourists or 20-litre jars to households and companies? These are two distinct models.
- Who is your competition? Visit local shops. See which brands sell. Notice their price. It has big brands such as Bisleri, Aquafina, and Kinley, but it also has numerous local brands.
- Talk to shopkeepers. Enquire about the brands that sell and why. Enquire about how much they would pay to have a new brand.
- Find a water source. Viable unprocessed water – a borewell or a city water supply. Check the water before construction of the plant.
This study allows you to create a good plan. As an example, you can discover that everyone is a seller of 1-litre bottles, but nobody delivers 20-litre jars to the offices – a huge opportunity.
Step 2: Select Your Business Model.
Select your product based on your research.
- Packaged Drinking Water (RO Water) -The most common model. Borewell or city water is used; it is purified by an RO (Reverse Osmosis) system, with which minerals are added to give flavour, and it is packaged. This is sold through most brands in India.
- Natural Mineral Water – Varied and pricier. Identify a natural source, e.g., a mountain spring. At the source, a natural mineral bottle. Needs special licences and a special location. Most of the new businesses begin with RO water.
3. Jar Business vs. Bottle Business:
- Bottles: (250ml, 500ml, 1L): These are used in travelling, shopping, partying, and restaurants. It is a “use and throw” product.
- Jars (20L). These are used in homes and offices. Customers deposit into the jar and then make a refund payment each time. This will make regular and loyal customers. Many small plants do both. They distribute bottles to stores and jars to households.
Step 3: Register Your Business (MSME/Udyam, GST)
Now you must bring your business on record. A factory cannot be run without being registered.
Firstly, you must decide which business structure to choose.
- Sole Proprietorship: The least complex. You are the only owner. It is also dangerous, though, because you are personally liable for the losses of the business.
- Partnership Firm: When you are forming a business with an acquaintance or a relative.
The company is a limited liability company belonging to a single individual. Private Limited Company (Pvt. Ltd.): This is the most professional alternative. It incorporates your business as an independent legal person. It is preferable in case you desire to take bank loans or larger investors in the future.
- MSME/Udyam Registration: It is a government-free registration of all small firms. It is carried out through the internet and is extremely easy. Bank loans and other government incentives are also offered with a Udyam certificate.
- GST Registration: You should be registered for GST (Goods and Services Tax). And this you will require to purchase your machines and materials, and to sell your completed bottles. PET bottles of bottled water attract a GST of 18 per cent. The 20-litre jars have a 12% GST.
Step 4: Apply for Licenses
It is the most crucial and the most challenging step. The business of selling water is a food business. The government is stringent in ensuring that the water is one hundred percent safe.
You will need many licenses. The two most crucial ones are:
- BIS Certification (ISI Mark)
- FSSAI License
These will be discussed later in the section in this article titled Licenses and Legal Requirements.
The other licenses that you will require are:
- A No Objection Certificate (NOC) of your local Gram Panchayat or Municipality.
- Central Ground Water Authority (CGWA) license in case you are drilling a new borewell.
- A pollution Control Certificate from your state Pollution Control Board.
- Register a trademark of your brand name (so nobody can imitate it).
WARNING: Do not begin to construct your plant, or to purchase machines, before you have applied for these licenses. It may take several months.
Step 5: Establish Infrastructure (Your Factory and Machines)
After you have obtained your licenses, you may construct your plant.
- Space: You must have a decent industrial space of 1000 to 1500 square feet. It can not be in a domestic home. It should be in good condition and well-connected to electricity and water.
- Raw Water: You must have a borewell or a big storage tank for your raw water.
- Machines: You will have to purchase and set up a fully-fledged Water Bottling Plant. This is usually packaged as a complete package by a supplier. It includes:
- Raw Water Pumps: To deliver the water into the plant.
- Water Treatment Section: This is the core of the plant. It contains sand filters, carbon filters, and the primary RO (Reverse Osmosis) machine. This part renders the water pure.
- Ozonator/ UV Filter: It is a special equipment and is designed to kill 100 percent of the germs and bacteria in the water that has undergone purification through the use of ozone gas and UV light.
- Bottle Washing and Filling Machine: It is a machine that automatically cleans the bottles, fills them with clean water, and adds a top to them.
- Labelling Machine: A machine to attach the label of your brand to your bottle.
- In-House Lab: You should install a small lab with simple equipment (such as microscopes, pH meters, etc.) to analyse the water.
- Employment of Personnel: You have to employ a competent chemist or microbiologist to operate this lab. This is a government rule. You will also require workers to operate the machines, as well as to load/unload.
Step 6: Branding & Packaging
Meanwhile, while your plant is being constructed, do something for your brand.
- Brand Name: Select a name that is easy to recollect and sounds pure and trustworthy. It is usual to use the words connected with water, aqua, fresh, or pure.
- Logo: Have a professional logo. It must be easy and must be attractive on a small bottle top and a large 20-litre jug. Blue and white are the favorite colors, as they appear clean.
- The Label: This is your most significant advert. The label needs to contain everything the government needs to know. This includes:
- Your brand name
- The “ISI” mark (from BIS)
- The “FSSAI” license number
- The volume (e.g., “1 Litre”)
- Date of manufacture and expiry date.
- Name of your company: Address of your company:
- Customer care number
Do not make false statements such as Mountain spring water when it is only RO water. Be honest.
Step 7: Distribution and marketing.
Your plant is ready. Your bottles are filled. Now, how do you sell them?
- Find Distributors: You can not sell all the shops yourself. You have to locate distributors or wholesalers in other regions of your city. They will purchase in large quantities (e.g., 100 cases at a time) from you and distribute them to individual stores.
- Your Own Vehicle: You will require at least one small truck or tempo (such as Tata Ace) to deliver the water cases to your distributors and to the large customers (such as hotels or offices).
- Target Customers:
- Local kirana stores
- Supermarkets
- Hotels and small restaurants.
- Offices (for 20L jars)
- Homes (for 20L jars)
- Wedding and party planners.
It is all about service and trust when marketing a new brand of water. Ensure that you are on time, all the time. When an office is short of water, your delivery will be within an hour. That is the way to establish a good reputation and outcompete the large brands.
Water Bottle Business Profit Margin
The bottled water business sells numerous units but only gets a small profit per unit. You make 2500-4000 on 1 1-litre bottle, which is retailed at 20.
The actual cash will be the sale of thousands of bottles per day.
- Gross Profit Margin: about 15% to 30%.
- Net Profit Margin: Once you deduct salaries, power, transport, and loan interest, you are left with 5-10%.
The 20-litre jars are usually more profitable to sell. You receive regular monthly payments from the same customers, and you save money since the jars are returned and used again.
Your plant has to operate every day, and most of the water that you produce has to be sold.
Licensing & Legal Compliance (Critical Step)
Do not try shortcuts. Unlicensed water selling may lead to the closure of your plant, huge fines, or even imprisonment.
- Registration of Business: Select Proprietorship, Partnership, or Pvt. Ltd.
- Udyam Registration: Your MSME certificate.
- GST Registration- To remit taxes.
- BIS Certification (ISI Mark): The most essential licence.
- Bureau of Indian Standards (BIS).
- Water shall comply with the standard IS 14543, which has limits on chemicals and germs.
- BIS inspectors will also come and check your machines, laboratory, and chemist, and test samples of water in their laboratories.
- The process takes 4‑6 months.
- No bottle can be sold without the ISI mark.
- FSSAI License: Food Safety Licence of the Food Safety and Standards Authority of India.
- Water is a food product and is therefore compulsory.
- New regulation: you should provide the BIS licence or the application for the licence before FSSAI can grant you a licence.
- This indicates the collaboration between BIS and FSSAI.
- Pollution Control Certificate: a state Pollution Control Board issue.
- Required since your RO machine results in rejected water.
- And you need to have a safe method of disposing of this wastewater (use it to wash floors or toilets).
- In-House Laboratory and Chemist: part of the BIS rules.
- You can not simply trust the machine.
- You require a small lab and a full-time qualified chemist or microbiologist.
- The chemist performs a basic test (pH, taste) and germ test on water every hour and daily.
- Have a detailed logbook of all tests.
All these licences are difficult to attain, yet they ensure that the market is not easily penetrated. When you do what is right, you develop a fine, long-lasting, reputable business.
How to Start a Bottled Water Business From Home
A water plant cannot be operated at home; it is illegal.
You may, however, begin a water distribution or reselling business at home, which is less expensive and simpler.
Model:
- Become a dealer and collaborate with an already existing water plant (a local trusted brand).
- Use your house or a small shop as a storage location.
- Purchase 20-litre jars at wholesale prices in the plant.
- And purchase a small delivery van or a three-wheeler.
- Identify customers in your neighbourhood (homes, offices, shops).
- Pick up the jars and deliver back the empty ones.
- This is not a manufacturing company but a service and logistics company.
You still need:
- Your municipal Trade Licence.
- If you have sales greater than the limit, then you must register.
- An agreement with the water plant you purchase.
This requires less capital (perhaps 100000 to 150000 rupees in a car and jar deposits) and fewer legal obstacles.
A business plan is your guide. It makes you think clearly and is required when you are seeking a bank loan. Here is a simple structure.
Marketing & Branding Strategies for Bottled Water Business
As a new brand, you cannot fight the large TV advertisements by Bisleri. You must be intelligent and begin locally.
- Pay attention to Trust: Your brand has to mean purity. Ensure that your bottle, cap, and label appear clean and professional. Your brand will die in a leaky or dirty-looking bottle.
- Local Tie-ups: This is the best strategy.
- Go to local restaurants, caterers, and hotels: Give them an advantage in price over their present supplier.
- Go to offices and schools: Offer to furnish their 20-litre jars. Provide a trial of the first two jars free.
- Sponsor local events. It is an excellent, inexpensive method of being noticed. Does it have a local cricketing match, a marathon, or a religious festival? Please provide them with free water cases with your brand name. Everyone will see your name.
- Simple Pricing: possess a straightforward price. E.g., 12 bottles with 100 rupees. Ensure that shops find it easy to shop with you.
- Use Your Delivery Van: Have your brand name and phone number painted on your delivery van. It is a touching ad that makes people go everywhere in the city.
Conclusion
Bottled water is a significant venture to initiate in India. It has a vast potential since the demand for safe drinking water will never decrease. It is a two-sided business. On the one hand, it is a manufacturing company, and you have to be a specialist regarding technology (RO machines) and law (BIS, FSSAI).
On the other hand, it is a logistics and sales company, in which you have to be excellent at delivering your product and creating relationships with the customers. It will require sufficient finances ( ₹20-35 lakhs ) and plenty of patience, particularly to secure all the government licenses.
The greatest principle is: under no circumstances should the quality of your water be compromised. The success of your whole business depends on the fact that people have trusted that the water in your bottle is safe and pure. When you safeguard such trust, you can have a highly successful and profitable company that serves a much-needed product to the people.
FAQs
Is the water in a bottle business lucrative?
Oh, yes, it can be profitable. Nevertheless, it is a large-volume business. Each bottle you sell makes you a small profit, and therefore, you have to sell thousands of bottles per day to earn good money.
What is the cost of opening a water bottle business in India?
800000-900000: To establish a small-scale manufacturing plant (including all machines and licenses), you can expect to invest 20-35 lakhs.
What would I do to begin my own bottled water company?
The short answer is:
- Prepare a business plan and make arrangements for the money.
- Register the company (e.g., Pvt. Ltd.) and receive GST.
- Get the two most significant licenses: BIS (ISI mark) and FSSAI.
- Establish your plant (1000+ sq. ft.) with an RO plant and bottling machines.
- Begin to sell to local stores, offices, and hotels.
Do you require a license to sell bottled water?
Yes, absolutely. It is illegal to manufacture and market bottled water without a BIS (ISI) license and an FSSAI license. They are compulsory, and the regulations are extremely rigid.