RO WATER PLANT

PROJECT REPORT

ON

RO WATER PLANT

Office &Works:
 TABLE OF CONTENTS

S.NO PARTICULARS
1. PROJECT AT A GLANCE

2. INTRODUCTION

3. CONSTITUTION AND SECTOR

4. BACKGROUND OF THE PROMOTERS

5. SCOPE OF THE PROJECT

6. SIGNIFICANCE OF PURIFIED WATER

7. BRIEF PROCESS

8. AVAILABILITY OF FILTERS AND MEMBRANES

9. MARKETING

10. LOCATION AND ITS ADVANTAGES

11. NOTES ON INDIVIDUAL HEADS & MEANS OF FINANCE

12. UTILTIES AND SERVICES

13. SWOT ANALYSIS

14. SCHEDULE OF IMPLEMENTATION

15. ASSUMPTIONS AND ANALYSIS OF PROFITABILITY

 1. PROJECT AT A GLANCE

01. Name of the Unit. :

02. Location of the Unit. :

03. Constitution. : Private Limited

04. Sector. : Small and Medium Scale

05. Line of Activity. : RO Water Plant

06. Name of the Proprietor. :

07. Project Cost. :

(Rs.in lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land Capital
Buildings & Civil Works Term Loan
Plant & Machinery
Electrical Fittings &
Installations
Working capital Margin
TOTAL TOTAL

08. Promoter Contribution. : 41.98 %

09. Debt Equity Ratio. : 1.38 : 1

10. Power. : 362 HP

11. Employment. : 19

12. Installed Capacity. : 90BPM

13. Operating Capacity. : 75%

 2. INTRODUCTION

It is needless to mention that water, a compound of Hydrogen and Oxygen is a

precious natural gift which is very essential for survival of mankind including animals. The
water used for potable purposes should be free from undesirable impurities. The water
available from untreated sources such as Well, Boreholes and Spring is generally not
hygienic and safe for drinking. Thus it is desirable and necessary to purify the water and
supply under hygienic conditions for human drinking purpose.

As the name implies, the mineral water is the purified water fortified with requisite amounts
of minerals such as Barium, Iron, Manganese, etc which can be absorbed by human body.
It is either obtained from natural resources like spring and drilled wells or it is fortified
artificially by blending and treating with mineral salts. The mineral water shall be
manufactured and packed under hygienic conditions in properly washed and cleaned
bottles in sterilized conditions

A process of osmosis through semipermeable membranes was first observed in 1748

by Jean-Antoine Nollet. For the following 200 years, osmosis was only a phenomenon
observed in the laboratory. In 1950, the University of California at Los Angeles first
investigated desalination of seawater using semipermeable membranes. Researchers from
both University of California at Los Angeles and the University of Florida successfully
produced fresh water from seawater in the mid-1950s, but the flux was too low to be
commercially viable until the discovery at University of California at Los Angeles by Sidney
Loeb and Srinivasa Sourirajan at the National Research Council of Canada, Ottawa, of
techniques for making asymmetric membranes characterized by an effectively thin "skin" layer
supported atop a highly porous and much thicker substrate region of the membrane. John
Cadotte, of FilmTec Corporation, discovered that membranes with particularly high flux and
low salt passage could be made by interfacial polymerization of m-phenylene diamine and
trimesoyl chloride. Cadotte's patent on this process was the subject of litigation and has since
expired. Almost all commercial reverse osmosis membrane is now made by this method. By
the end of 2001, about 15,200 desalination plants were in operation or in the planning stages,
worldwide.
Reverse osmosis production train, North Cape Coral Reverse Osmosis Plant
In 1977 Cape Coral, Florida became the first municipality in the United States to use the RO
process on a large scale with an initial operating capacity of 11.35 million liters (3 million US
gal) per day. By 1985, due to the rapid growth in population of Cape Coral, the city had the
largest low pressure reverse osmosis plant in the world, capable of producing 56.8 million
liters (15 million US gal) per day (MGD).

and reverse osmosis is used in water purification Formally, reverse osmosis is the process of
forcing a solvent from a region of high solute concentration through a semipermeable
membrane to a region of low solute concentration by applying a pressure in excess of the
osmotic pressure. The largest and most important application of reverse osmosis is the
separation of pure water from seawater and brackish waters; seawater or brackish water is
pressurized against one surface of the membrane, causing transport of salt-depleted water
across the membrane and emergence of potable drinking water from the low-pressure side.

The membranes used for reverse osmosis have a dense layer in the polymer matrix—either
the skin of an asymmetric membrane or an interfacially polymerized layer within a thin-film-
composite membrane—where the separation occurs. In most cases, the membrane is
designed to allow only water to pass through this dense layer while preventing the passage of
solutes (such as salt ions). This process requires that a high pressure be exerted on the high
concentration side of the membrane, usually 2–17 bar (30–250 psi) for fresh and brackish
water, and 40–82 bar (600–1200 psi) for seawater, which has around 27 bar (390 psi) natural
osmotic pressure that must be overcome. This process is best known for its use
in desalination (removing the salt and other minerals from sea water to produce fresh water),
but since the early 1970s, it has also been used to purify fresh water for medical, industrial,
and domestic applications.
 3. CONSTITUTIONS AND SECTOR

Constitution: A unit by name and style , is a Private Limited concern, the main object of the
unit is to process and supply RO water. The promoter of the unit is

Sector: The unit comes under Micro sector and will obtain industry registration from
concerned authority.

LICENCES AND APPROVALS:

The Company will obtain the following licenses and approvals.

1. FSSAI

2. BIS

4. BACKGROUNG OF THE PROMOTER

 5. SCOPE OF THE PROJECT

The project envisages setting up a unit for processing of RO Water plant. The total cost of the
project is estimated at 430.00 lakhs. The installed Capacity of the plant is 90 BPM working in
1 shifts Operations. The capacity utilization is assumed to be at 75%, 85% in the First,
Second and Third year respectively.

6. SIGNIFICANCE OF PURIFIED WATER.

Purified water is water that has been mechanically filtered or processed to remove impurities
and make it suitable for use. Distilled water has been the most common form of purified water,
but, in recent years, water is more frequently purified by other processes including capacitive
deionization, reverseosmosis, carbonfiltering, microfiltration, ultrafiltration, ultraviolet oxidation,
or electrodeionization. Combinations of a number of these processes have come into use to
produce ultrapure water of such high purity that its trace contaminants are measured in parts
per billion (ppb) or parts per trillion (ppt). Purified water has many uses, largely in the
production of medications, in science and engineering laboratories and industries, and is
produced in a range of purities. It can be produced on site for immediate use or purchased in
containers. Purified water in colloquial English can also refer to water which has been treated
("rendered potable") to neutralize, but not necessarily remove contaminants considered
harmful to humans or animals

7. BRIEF PROCESS

Reverse osmosis (RO) is a water purification technology that uses a semipermeable membrane to
remove ions, molecules and larger particles from drinking water. In reverse osmosis, an applied
pressure is used to overcome osmotic pressure, a colligative property, that is driven by chemical
potential differences of the solvent, a thermodynamic parameter. Reverse osmosis can
remove many types of dissolved and suspended species from water, including bacteria, and is
used in both industrial processes and the production of potable water. The result is that
the solute is retained on the pressurized side of the membrane and the pure solvent is allowed
to pass to the other side. To be "selective", this membrane should not allow large molecules
or ions through the pores (holes), but should allow smaller components of the solution (such
as solvent molecules) to pass freely.

In the normal osmosis process, the solvent naturally moves from an area of low solute
concentration (high water potential), through a membrane, to an area of high solute
concentration (low water potential). The driving force for the movement of the solvent is the
reduction in the free energy of the system when the difference in solvent concentration on
either side of a membrane is reduced, generating osmotic pressure due to the solvent moving
into the more concentrated solution. Applying an external pressure to reverse the natural flow
of pure solvent, thus, is reverse osmosis. The process is similar to other membrane
technology applications. However, key differences are found between reverse osmosis and
filtration. The predominant removal mechanism in membrane filtration is straining, or size
exclusion, so the process can theoretically achieve perfect efficiency regardless of parameters
such as the solution's pressure and concentration. Reverse osmosis also involves diffusion,
making the process dependent on pressure, flow rate, and other conditions. Reverse osmosis
is most commonly known for its use in drinking water purification from seawater, removing
the salt and other effluent materials from the water molecules.
 8. AVAILABILITY OF REPLACEMENT FILTERS AND MEBRANES.
Reverse osmosis ( RO) is one of the most effective technologies to purify water which has
high TDS levels of more than 500 ppm. Reverse Osmosis (RO) is a separation technology
where dissolved impurities in water are separated by way of a semi-permeable membrane
(RO membrane) which works under high pressure. As such, the RO water purification
system can be used for both – home as well as for commercial purposes. Constituents of
dissolved solids and impurities (TDS) are calcium and magnesium salts, nitrates, iron, lead,
fluorides, arsenic etc. Such dissolved impurities are usually found in ground water, i.e water
that is drawn from beneath the surface of the earth. In cities, ground water is distributed by
water tankers to areas where municipal pipelines are absent or where demand exceeds
supply. While minerals including calcium and magnesium are good for the body in permissible
limits, other impurities may cause harm in the long run. Reverse Osmosis membrane is an
integral part of the Reverse Osmosis system.

The RO membrane is a thin film made up of microscopic pores. In normal operation, the
membrane in reverse osmosis elements can become fouled (contaminated) by mineral
buildup, biological matter, colloidal particles and insoluble organic constituents. Besides
fouling, membranes can get clogged to the extent that they cause a drop in the output of
purified water; or become ineffective in removing the salts effectively, or both. Because of this
fouling problem most RO purifiers – home as well as commercial RO water purifiers have UV
purification post membrane to eliminate the chances of contamination.

To protect the delicate RO membranes, and to extend the life and prevent frequent fouling,
water should first flow through a pre-filter. The pre-filter cartridge will filter out dirt, silt, sand
and other suspended sediments. This pre-filter should be changed every 6 – 9 months; this,
however, depends greatly on water quality and usage. If not properly back flushed and
maintained, this pre-filter can foul or get clogged, and thereby reduce the life of the RO
membrane.

Chlorine in water will also affect the life of the RO membrane. Therefore an activated carbon
pre-filter is normally placed before the membrane to adsorb free chlorine and thereby extend
the life of the RO membrane. Dewdrop RO water purifier from Alfaa UV has a carbon pre-
filter preceding the RO membrane this protecting the RO membrane .It is very important for
the pre-filter to be changed regularly in order to prevent membrane from giving off foul smell,
or degrading; as part of regular maintenance.

It is advised that Reverse Osmosis membranes be replaced every 2-3 years or based on
actual usage, consumption and water quality. In high TDS areas, the RO membrane may
need replacement more frequently. The specification of the RO membrane must be matched
as per the quality of water. For example, if the capacity of an RO membrane is to purify up to
1000 ppm of TDS, passing water higher in TDS than the recommended level will reduce its
life. For optimum efficiency of RO membrane, routine maintenance should be performed on
Reverse Osmosis systems. RO systems should usually have three, four or five filter stages.

RO water purifiers are an expensive but excellent way to purify water high in TDS. Servicing is
also an expensive proposition, as pre-filters and membranes are costly. Besides the cost, RO
membranes used in residential water purifiers normally reject 70-80% of water and therefore
wastage of water is high.
.
 9. MARKETING

Marketing Objectives
 Maintain positive, steady sales growth each quarter.

 Achieve increase in market penetration every two quarters.

 Generate brand equity so that the unit becomes a household word within the industry in
the nearby districts.

Target Market:
The promoters being already involved in the field of supply of RO Water in the close areas of
the proposed unit, they have fair knowledge of the areas and places where they can penetrate
and expand by means of providing incentives to the dealers and distributors. Water being
essential commodity, there are fair chances of the strategy of the promoters of being
crystallizing. The promoters have got their strategies to penetrate in the market in the district
of Visakhapatnam, Vizianagram, Srikakulam.
 10. LOCATION AND ITS ADVANTAGES

Land: The Proposed location of the Unit is at

The location of the unit has considerable influence on the techno-economical facility of
the project. There are various factors contributing to the functioning of a plant and
following are the primary factors taken into consideration.

Reasons for the Selection of the site:

1. Adequate of Materials.
2. Adequate of labour at economically rate.
3. Adequate supply of water through out the year.
4. The site is well connected with road facility.
5. Banking facilities and Government supports
6. Adequate Transport facilities for economical transportation of finished product and
spare parts.
7. Nearness to the Market.
 11. NOTES ON INDIVIDUAL HEADS OF MEANS OF FINANCE

(Rs. In Lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land Capital
Buildings & Civil Works Term Loan
Plant & Machinery
Electrical Fittings &
Installations
Working capital Margin
TOTAL TOTAL

DETAILED NOTES ON PROJECT COST

DETAILD NOTES ON MEANS OF FINANCE

12. UTILITES AND SERVICES

Power: The unit requires 362 HP power under HT connection. The unit is being located
at and will get the required power without any problem.

Employment: The unit will employ 19 persons and will recruit locally.

Water: The unit requires water of 64000 liters and domestic water is requiring for
drinking and sanitation, Bore well is provided under civil works head.

Pollution: No harmful effluents age generated in the manufacturing process. However,

the unit will get NOC from Pollution control board.
Transport: The unit is located at No problems are anticipated for transportation of the
materials and the finished goods.

13. SWOT ANALYSIS

STRENGTH:

The unit is proposed at. The unit is eligible for various Govt. concessions. The
promoters are having vast experience in the same line of activity.

WEAKNESS:

The firm has competition from the existing units as the proposed unit is having
latest technology and by the government encouragements to start new industry the
units can competent with the old industries.

OPPORTUNITY:

The firm’s opportunity to diversify into production of Pavement Bricks, Inter

locking Bricks etc. the market demand for the future expansion is good for the
proposed unit.
 14. SCHEDULE OF IMPLEMENTAION

S.N Particulars Month Start Month Completion

o.
01. Acquisition of Land OWN OWN
02. Development of Land
03. Civil Works factory Building,
machinery
Foundation.
04. Plant & Machinery Placement of
Order
05 Delivery at Site
06. Arrangement for Power
07. Erection of Equipment
08. Training of Personnel
09. Trial Run
10. Commercial Production
 15. Assumptions underlying for preparation of cost of production and profitability

8 hours Production in 1 Shift = 64000 Ltr.

Litres of Water : 43200
Nos. of Units : 3600
Unit : 1 Ltr Bottle
Income Details
Details of Unit per shift
1 Ltr Bottle Box (1 x 12 Bottles) = Rs. 65.00 (Sell Price / Box)
1 Ltr Bottle Pre Form : Rs. 2.20
1 Ltr Bottle Cap : Rs. 0.30
1 Ltr Bottle Label : Rs. 0.20
1 Ltr Bottle Box : Rs. 0.65
1 Ltr Material Cost Rs. 3.35 x 12 Bottles Rs. 40.20
1 Ltr Bottle Box Gross Profit Rs. 24.80
1 Ltr Bottle Box Production (3600 Box x Rs. 24.80) = Rs. 89,280.00

Expenditure Details

Salaries
 1 Manager : 20,000.00
 1 Accountant : 10,000.00
 10 Workers : 60,000.00
 2 Lab Tech : 20,000.00
 1 Plant Oper.: 10,000.00
 1 Filling Oper : 10,000.00
 1 Blowing Oper. 15,000.00
 1 Shrink Machine Oper. 10,000.00
 1 Labeling Operator : 10,000.00
 Total 1,65,000.00
 For one day ( 26 Days) 6,346.00
Electricity Expenses
Power Bill for 1 month : 2,00,000/-
For 1 day (26 days) 7,692/-

Interest Expense:
Term Loan and Working Capital: Rs. 379166/- per month
For 1 day (26 days) 14,583.00

BIS Licencing and Testing Fees:

 Licence Fees Annual : 125000.00

 Testing Fees Annual: 40000.00
 Chemical Annual: 10000.00
 Total Fixed Cost-Annual 175000.00
 Total Fixed Cost-Monthly 14,583.00
 Fixed Cost- daily(26 days) 561.00

Total Expenses per Shift

 Manpower Cost : 6346.00
 Electricity Exp: 7692.00
 Interest Cost: 14,583.00
 Fixed Cost: 561.00
 Total Expenses 29182.00

Gross Profit per Shift : Rs. 89,280.00

Expenses per Shift : Rs. 29,182.00
Net Profit per Shift: Rs. 60,098.00