Sterile Water: Essential in Healthcare and Pharmaceuticals

Sterile water is indispensable in healthcare settings for various applications, including dilution of medications and medical device processing. This report examines the feasibility and financial viability of setting up a sterile water manufacturing plant.

Market Potential

The healthcare industry’s constant demand for sterile water ensures a steady market.

Technical Feasibility

Raw Materials

  • Water: Primary raw material.

Production Process

  • Filtration and Purification: Filtering and purifying water to remove contaminants.
  • Sterilization: Sterilizing the purified water to ensure it is free from microorganisms.
  • Packaging: Packaging the sterile water in sterile containers.

Plant Layout and Machinery A typical plant layout includes:

  • Filtration and Purification Unit
  • Sterilization Unit
  • Packaging Unit

Financial Analysis

Total Project Cost

  • Land and Site Development: ₹5 crore
  • Plant and Machinery: ₹25 crore
  • Installation and Erection: ₹5 crore
  • Preliminary and Pre-operative Expenses: ₹5 crore
  • Working Capital: ₹5 crore
  • Total Estimated Cost: ₹45 crore

Revenue Generation Revenue from the sale of is estimated based on market rates.

Cost of Production

  • Raw Material Cost: ₹10 crore per annum
  • Operating Expenses: ₹5 crore per annum
  • Maintenance and Utilities: ₹2.5 crore per annum

Profitability Analysis

  • Total Annual Revenue: ₹95 crore
  • Annual Expenses: ₹17.5 crore
  • Net Profit: ₹77.5 crore
  • Rate of Return: 17%
  • DSCR: 1.7

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