Feasibility Study
Financial Appraisal
Group 08
WAQAS AHMED 117
IJAZ SHIGRI 25
SABIHA RIZWAN 83
SHAISTA ASAD 90
HINA ZEHRA 22
Project: Mineral Water Plant
GENERAL BREIFING
WORLD’S PRESPECTIVE:
Traditionally, Mineral water was water from a mineral spring containing various minerals such as salts and sulfur compounds. After emerging the theme of safe drinking water and expanding trend of tourism and portability, Mineral water started to be bottled and gradually made a great blast in Food & Beverage Industry. Now there are more than 3,000 brands of mineral water commercially available worldwide.
By 2002, the global bottled water industry was at an inflection point. Traditionally, the industry had been fragmented among many local and regional players, but over the last decade four large multinationals (Danone, Nestlé, PepsiCo, and CocaCola) had been battling for global market share. These four companies controlled over 30% of the global market.
The world bottled water market amounts to an annual volume of 89 billion liters, which represents an average 15 liters of bottled water drunk yearly per person (DANONE, 2000).
Western Europeans are the major consumers, drinking nearly half of all the world bottled water, with an average of 85 liters/person/year (Sollberger, 1994).
In United States, 54% of Americans regularly drink bottled water (Olson, 1999). More than half (59%) of the bottled water drunk in the world is purified water, the remaining 41% being spring or mineral water (Belot, 2000).
Bottled water consumption has been steadily growing in the world for the past 30 years. It is the most dynamic sector of all the food and beverage industry: bottled water consumption in the world increases by an average 12% every year, in spite of its excessively high price compared to tap water and although industrialized countries consumers have, in principle, access to cheap good quality tap water. Government
Group 08
WAQAS AHMED 117
IJAZ SHIGRI 25
SABIHA RIZWAN 83
SHAISTA ASAD 90
HINA ZEHRA 22
Project: Mineral Water Plant
GENERAL BREIFING
WORLD’S PRESPECTIVE:
Traditionally, Mineral water was water from a mineral spring containing various minerals such as salts and sulfur compounds. After emerging the theme of safe drinking water and expanding trend of tourism and portability, Mineral water started to be bottled and gradually made a great blast in Food & Beverage Industry. Now there are more than 3,000 brands of mineral water commercially available worldwide.
By 2002, the global bottled water industry was at an inflection point. Traditionally, the industry had been fragmented among many local and regional players, but over the last decade four large multinationals (Danone, Nestlé, PepsiCo, and CocaCola) had been battling for global market share. These four companies controlled over 30% of the global market.
The world bottled water market amounts to an annual volume of 89 billion liters, which represents an average 15 liters of bottled water drunk yearly per person (DANONE, 2000).
Western Europeans are the major consumers, drinking nearly half of all the world bottled water, with an average of 85 liters/person/year (Sollberger, 1994).
In United States, 54% of Americans regularly drink bottled water (Olson, 1999). More than half (59%) of the bottled water drunk in the world is purified water, the remaining 41% being spring or mineral water (Belot, 2000).
Bottled water consumption has been steadily growing in the world for the past 30 years. It is the most dynamic sector of all the food and beverage industry: bottled water consumption in the world increases by an average 12% every year, in spite of its excessively high price compared to tap water and although industrialized countries consumers have, in principle, access to cheap good quality tap water. Government