§1What this business is
Raw water is aerated, settled, treated, filtered and disinfected, then purified in a 3,000 litre-a-day RO unit, chilled and delivered in cans by vehicle; a 750 litre-a-day water ATM sells water by the litre. The report assumes the unit runs as a franchise of a water company and pays a fee per litre.
Capacity: RO: 3,000 litres a day; water ATM: 750 litres a day. Year 1 at 70%: 7,56,000 litres of can water and 1,89,000 litres from the ATM.
§2Is it right for you?
Who it is for
Someone with a vehicle and local contacts who can run daily deliveries.
Who it is not for
Someone who cannot keep strict hygiene and water testing.
Advantages
- Safe drinking water is needed daily
- Cash sales, little stock
- Small team of 4
- Offices, shops and homes take regular delivery
Drawbacks
- Many local can suppliers compete
- Low price per litre, so volume matters
- Groundwater quality and permission issues
- Strict rules if you sell sealed packaged water
Skills you need
- RO plant operation and filter changes
- Water testing and hygiene
- Delivery route planning
- Customer collection
Why difficulty 2/5: Simple to run; hygiene, licences and delivery discipline matter.
§3Market
Who buys
- Households
- Shops and offices
- Events and small eateries
How it sells
- Daily home and office delivery
- Water ATM at a busy spot
Good to know
- The report describes water ATMs as solar-powered, cloud-connected and open 24×7.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| RO unit | 1 | ₹3,36,286 |
| Chiller | 1 | ₹1,00,000 |
| Delivery vehicle | 1 | ₹4,00,000 |
| Cans (campers) | 1 lot | ₹1,50,000 |
| Borewell | 1 | ₹50,000 |
From: PMEGP sample project report — Water Purifier Unit (prepared by Udyami/Samadhan)
- Borewell waterwater cost ₹0.26 L in year 1
- Treatment chemicals (alum, lime, chlorine) and RO consumablesraw material ₹0.78 L in year 1
- Franchise fee and tax per litre₹0.087 a litre on can water and ₹0.067 a litre on ATM water
From: PMEGP sample project report — Water Purifier Unit (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
BIS Central Laboratory, Sahibabad · Sahibabad →BIS Eastern Regional Office Laboratory, Kolkata · Kolkata →BIS Northern Regional Office Laboratory, Mohali · Mohali →BIS Western Regional Office Laboratory, Mumbai · Mumbai →BIS Southern Regional Office Laboratory, Chennai · Chennai →BIS Bangalore Branch Laboratory · Bengaluru →BIS Patna Branch Laboratory · Patna →BIS Guwahati Branch Laboratory · Guwahati →CENTRAL WATER LABORATORY · Port Blair →CHOKSI LABORATORIES LIMITED · Verna →SHREEJI MATERIALS TESTING LABORATORY LLP · Bhavnagar →SGS INDIA PRIVATE LIMITED · Ahmedabad →
§5Licences & registration
- Udyam registration
- GST
- FSSAI licence
- BIS certification (IS 14543) if you sell sealed packaged drinking water
- Groundwater/borewell permission where your state requires it
- Shop/trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP and MUDRA both fit a ₹16.64 L project; CGTMSE for collateral-free credit.
§7Money
How the investment is worked out: Building and civil work ₹3.50 L (construction ₹3.00 L + borewell ₹0.50 L) + plant & machinery ₹9.86 L (RO unit, chiller, vehicle, cans) + furniture ₹0.50 L + working capital ₹2.78 L = ₹16.64 L. Finance: own ₹1.66 L, term loan ₹12.48 L, working-capital limit ₹2.50 L.
Working capital: Working capital ₹2.78 L (bank limit ₹2.50 L).
Year not printed on the report — check current machinery prices.
§8Export potential
A local supply business; it is not an export product.
§9Risks — where people fail
- Contamination complaints
- Borewell drying or poor water
- Regulatory action on unlicensed sales
- Can losses and breakage
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working ro drinking water supply unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start RO Drinking Water Supply Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.