How Much Does It Cost to Start a Mineral Water Plant?

Did you know India's packaged drinking water market is expected to reach ₹403 billion by 2027? With increasing demand in both urban and semi-urban areas, starting a mineral water plant is now seen as a highly profitable business venture. But before entering this industry, one of the most asked questions is:

What is the actual cost to set up a mineral water plant in India?

This comprehensive guide explores every aspect of mineral water plant cost, including setup budget, machine prices, real-world examples, and licensing fees—especially for a 1000 LPH (litres per hour) unit.

Table of Contents

1. Overview of the Mineral Water Industry in India

2. Major Factors That Affect Mineral Water Plant Cost

3. Mineral Water Plant Setup Cost Breakdown

4. Machine and Equipment Prices (2025)

5. Cost for Setting Up a 1000 LPH Mineral Water Plant

6. Real-Life Example of Water Plant Setup

7. Licensing & Legal Fees

8. Packaged Water Plant Cost vs ROI

9. Common Mistakes That Increase Budget

10. Tips to Reduce Setup Costs

11. Final Thoughts

12. FAQs

1. Overview of the Mineral Water Industry in India

The packaged drinking water industry in India has evolved dramatically in the last decade. Rising health awareness, urbanization, and the increasing presence of organized retail have contributed to a massive surge in demand.

This growth opens up opportunities for businesses willing to invest in a mineral water plant. Whether you plan to supply bulk water or bottled units, understanding the full mineral water plant budget is crucial.

2. Major Factors That Affect Mineral Water Plant Cost

Several variables influence the cost for setting up a mineral water plant, including:

• Plant capacity (e.g., 1000 LPH, 2000 LPH, etc.)

• Location & land availability

• Type of water purification technology (RO, UV, Ozonation)

• Automation level (manual, semi-automatic, or fully automatic)

• Packaging type (jar, bottle, pouch)

• Licensing and certifications (BIS, FSSAI, etc.)

3. Mineral Water Plant Setup Cost Breakdown

Here's a typical capital expenditure (CAPEX) layout for setting up a 1000 LPH mineral water plant:

Note: These are approximate figures. Prices may vary based on region, brand of equipment, and scale.

4. Machine and Equipment Prices in 2025

Understanding water plant machine price is essential before budgeting. Here's a rough guide:

• 1000 LPH RO System – ₹2.5 to ₹3 lakh

• Automatic Bottle Filling Machine (12 BPM) – ₹1.5 to ₹2 lakh

• Labeling & Shrinking Machine – ₹50,000 to ₹1 lakh

• Bottle Blowing Machine (PET) – ₹1.5 lakh and up

• Ozonator & UV Disinfection System – ₹30,000 – ₹50,000

• TDS Controller System – ₹20,000+

For genuine components, ensure you're using authentic RO spare parts. Learn more in our blog:
How to Spot Genuine RO Spare Parts

5. Mineral Water Plant Cost for 1000 LPH

This is the most common capacity chosen by startups. Here's a focused breakdown of mineral water plant cost for 1000 LPH:

• Plant Machinery (RO+UV+Ozonator): ₹2.5–3.5 lakh

• Bottle Filling Line: ₹1.5–2 lakh

• Testing Equipment: ₹40,000–₹60,000

• Labor & Electricity (Monthly): ₹35,000

• Packaging & Consumables: ₹50,000–₹70,000 per month

• Total Setup Cost: ₹6.5–7.5 lakh (excluding land)

For domestic use in modular kitchens, you might want to explore our guide on Under Sink RO System.

6. Real-Life Example: Gujarat-Based Water Plant

Let’s explore a real-world example:

A water entrepreneur in Gujarat set up a 1000 LPH mineral water plant in 2024.

• Total CAPEX: ₹7.2 lakh

• Monthly Operational Cost: ₹35,000

• Daily Production: 800 litres bottled water

• Selling Price: ₹10–₹12/litre

• Monthly Revenue: ₹2,40,000

• Breakeven: Achieved in 14–16 months

This shows how a properly budgeted setup can recover costs within 1–1.5 years.

7. Licensing & Legal Fees

Here’s what you’ll need and the estimated costs:

Pro Tip: Apply early as BIS and Pollution Control Board approvals may take 6–8 weeks.

8. Packaged Water Plant Cost vs ROI

Even though the packaged water plant cost may seem high initially, the ROI is often attractive.

Example:

• Selling Price per 1 Litre Bottle: ₹10

• Production Cost (including packaging): ₹4–₹5

• Gross Profit per Bottle: ₹5–₹6

• Monthly Bottles Sold: 40,000

• Monthly Gross Profit: ₹2–2.4 lakh

Your payback period can be 12–18 months depending on distribution, branding, and marketing.

9. Common Mistakes That Increase Costs

Avoid these to stay within your mineral water plant budget:

• Over-engineering the plant beyond local demand

• Buying second-hand machines without warranty

• Ignoring local compliance rules (leading to fines)

• Hiring untrained staff for machinery handling

• Poor raw water source testing before plant design

10. Tips to Reduce Setup Costs

• Start with semi-automatic machines if budget is tight

• Partner with a verified water plant equipment supplier

• Outsource bottle blowing in early stages

• Choose location with existing infrastructure

• Get guidance from a RO industry consultant

Also read: 2025 Trends in Industrial Equipment for RO Use

11. Final Thoughts

Understanding the mineral water plant cost is essential before you make any investment. With a 1000 LPH unit, you can start small, scale as demand grows, and recover your investment quickly if operations are managed efficiently.

Whether you’re a first-time entrepreneur or looking to expand into the packaged water business, detailed budgeting and expert guidance are your best tools.

12. FAQs

Q1. What is the cost of a 1000 LPH mineral water plant in India?

A fully setup 1000 LPH mineral water plant typically costs between ₹6.5 to ₹7.5 lakh, including machinery, licensing, and basic infrastructure.

Q2. Is land included in the setup cost?

No, land costs vary by region and are not included in most CAPEX estimates.

Q3. Do I need a BIS license for a small water plant?

Yes. BIS (IS 14543) certification is mandatory for all packaged drinking water businesses in India.

Q4. How long does it take to break even?

With a well-managed operation, most mineral water plants reach break-even within 12–18 months.

Q5. What TDS level should be maintained in bottled water?

According to BIS, packaged drinking water must have TDS below 500 ppm. Learn more: Minimum TDS for Drinking Water