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Tata Capital > Blog > How to Start a Water Supply Business in India?

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How to Start a Water Supply Business in India?

How to Start a Water Supply Business in India?

With rapid urbanization and increasing population, the demand for clean drinking water in Indian cities is on the rise. Businesses and civil societies are willing to pay for easy access to fresh, mineral-rich drinking water for daily consumption. That makes the water supply business one of the most profitable ventures to own. However, you need a well-planned strategy to be successful in your water distribution venture. This blog will explore the step-by-step process of starting a water supply business in India.

A step-by-step guide to starting a water supply business

Here are the steps you must take to establish a profitable commercial water suppliers venture in India:

1. Create a business plan

Before starting a business, you need a solid roadmap for success. First, perform market research to identify competitors, prevalent products, and prices. It will also help you assess the actual cost of starting and operating a water business. Then you can easily formulate a business plan and decide your target market and price of your product.

2. Create a company

The next step commercial water suppliers take is they formulate a company. You have to decide the name of your company and its structure. Most water distribution businesses opt for Private Limited Company and LLP Registration. But if you are a solopreneur, you can also register your business as a Sole Proprietorship.

3. Get all necessary licenses

When private water suppliers have formed a company, they must apply for various licences and registrations necessary to run a business in India. And since water is for consumption, you will also need additional safety permits. Here is a list of permits and registrations you must apply for when starting a water supply business:

I. GST Registration

II. PAN Registration

III. Digital Signature Certificate Registration

IV. ISO/BIS Certification

V. FSSAI Registration

VI. Pollution Control and Pest Control Certifications

4. Select a location for the factory

Location is also a key decision for commercial water suppliers because a mineral water factory requires adequate space for machinery and storage. Ideally, you will need a facility spread over 1000 square feet or more to fit all the equipment and storage units. Another factor to consider when choosing the location is the proximity to the target market. Make sure your clients are accessible within your serviceable radius.

5. Decide on the equipment

The next decision private water suppliers make is to decide the equipment they want for their factory. You will need a water pumping machine, a water purifying machine, and a water packaging machine. Depending on your needs, you can decide on the machinery based on its production capacity and level of automation it offers. 

6. Acquire funds

At last, your water supply business needs adequate funds to function. One of the best ways to fund your business is to avail of a business loan. You can apply for secured and unsecured business loans to set up a business. You can also take loans tailored to meet specific business needs like purchasing raw materials, equipment financing, working capital needs, etc. Business loans give you instant access to funds and you can repay the loan as your business grows.

Wrapping up

That was the step-by-step guide to help you start a water distribution business. If you need funds for your water supply venture, check out Tata Capital, India’s most trusted financial service provider. At Tata Capital, we offer collateral-free business loans of up to Rs 75 lakhs at attractive interest rates. You can also avail of our tailored loan products like working capital loans, term loans, equipment financing, etc. Visit the Tata Capital website to know more.

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