FMC

Bamboo Bottle

Overview

Product Idea and description
  • Natural, eco-friendly, long-lasting and superior to plastic bottles as they can keep the water cooler for longer period in summers 
  • The bamboo bottles may be combined with components made of plastic or steel for value addition.
Target group
  • Bottle traders, exporters, retail markets
  • Hotels, resorts, restaurants, schools
Raw material required
  • The bamboo mainly used for this product is Bambusabalcooa
Production capacity, facility and labour required
  • For an industrial set up to make 2500 bamboo bottles in a month, the entrepreneur would need to invest around Rs. 24 Lakh including around Rs. 3 lakh working capital.
  • 10 workers can be employed to work for 8 hours in a day (25 days in a month)
  • 1000 sq ft bamboo work shed for setting up a facility
Production Process
  • The bamboo is cut and treated naturally by boiling, drying and smoking. Boiling purifies and strengthens the wall around the hollow of the culm.
  • The different parts of the bamboo bottle such as body, base, neck or cap are carved using lathe or turning machine. These parts are smoothened using sanding machine.
  • Optionally, the formed outer cup can be fitted with an inner liner. A glass filter or a stainless steel filter is placed inside the cup. The cap of the bottle may be made of plastic, metal or even bamboo
  • Polish the bamboo body of bottle with waterproof oil polish or coating of camphorand mustard oil as needed. The cap can have round or threaded finishing.
Tools &Equipment’s required for production and prices
  • Portable Cross Cutting Machine (3 No.)  – 60000
  • Light Load Lathe Machine (2 No.) – 300000
  • Sanding Belt Machine – 65000
  • Pump Set & Treatment Tank-200000
  • Drying Chamber – 600000
Pricing Strategy
  • Price ranges from 350 and above for 700-750 ml bottle
Package, storage and transportation requirements
  • Final product is packaged in cardboard box for delivery
  • Finished bamboo bottles must be stored in a dry place
Marketing strategy

Bamboo based water bottles have seen a steady rise in demand in the national as well as the international market. DB Industries in Assam currently produces around 1,500 bottles per month and have standing demand of more than 8,000 water bottles per month.
Eco Friendly Bottles market worldwide is projected to grow by US$1.7 Billion, guided by a compounded growth of 7.3% ("Eco Friendly Bottles – Market Analysis, Trends, and Forecasts" report).
Retail and lifetstyle stores: Home Centre, HomeTown and IKEA
Major B2B & B2C Portals – exportsindia.com, alibaba.com, indiamart.com, amazon.com, flipkart, ebay, snapdeal
Global markets: Eastern Europe, South America, Australia, Western Europe, Middle East, Central America, North America, Africa, Asia as the customer preference is aligned towards more sustainable and eco-friendly substitutes of plastics.
Domestic suppliers:Kenko Jal, Yana enterprise, VR Traders, DB Industries, Bengal Handicrafts & Handlooms, Envifect, Bamboozz industry, Bamboo Art, CRAFFITI WORLD
Global suppliers:Qingdao Approfine New Material Technology Co., Ltd, Zebra Technologies, Yarn Bamboo bottle, Key International, Ben & Jerry’s Bamboo Bottle Co
Marketing strategy:

  1. Brand with Green Logos & message card to showcase how the product promotes green environment by focusing on green product advantages
  2. E-marketing- Apart from being utility products, use of such ecologically sustainable products is also seen as a style statement. This segment is driven mostly by social media – Facebook or Instagram. Hence, social media platform should be leveraged to promote the product and spread awareness.

    Further, e-commerce websites such as Amazon, flipkart, snapdeal will serve as a medium to extend market beyond local reach

  3. Tie-ups with resorts, hotels and restaurants for serving water in bamboo bottles instead of plastic or glass bottles
  4. Promotion of bamboo bottles in schools to spread awareness for eco-friendly products
  5. Directly supplying to retails shops for local level marketing
  6. Participation in fairs/exhibitions
Distribution Channel
  • The sale and adoption of such products is highly dependent on references and recommendations. Thus, the entrepreneur must ensure access to markets in lifestyle retail chains, ecommerce and export market.

Product SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

  • Eco-friendly, natural & organic and reusable.
  • Perfectly sustainable alternative to plastic bottles
  • Builds brand equity and wins brand loyalty among customers
  • Easy to obtain bamboo in any quantity
  • Lack of knowledge for production process and detailing
  • Prone to fungi and insect attacks if exposed to moisture for longer period of time
  • Future expansion by exporting
  • Growing market design for plastic alternative
  • Reduced use of plastic will provide avenues for expansion for sustainable consumption
  • Upsurging Sales and Increasing Awareness due to Online Sales Channels
  • Comparatively expensive than the conventional Bottles
  • Alternatives available such as metals, biodegradable plastic, etc.
  • Lack of awareness for bamboo bottles

Financial Plan

To start the bamboo bottle manufacturing business, one can invest 24.12L INR with a working capital requirement of 3.17L INR per month, assuming the working capital cycle is 25 days and runs for a total of 8 work hours in a day.

Financial Summary Sheet:
S.No Parameters Unit Value
1 Capital Cost INR 2412500
2 Working Capital INR 3774000
3 Total Cost of Investment INR 6186500
4 Sales INR 10500000
5 Gross profit INR 4313500
6 Tax @ 30% INR 1294050
7 Net Profit INR 3019450
8 Pay Back Period (Total Investment/Net Profit*12) Months 25
Capital Cost:
S.No Parameters Value
1 Land & Building 1000000
Machinery & equipment
2 Portable Cross Cutting Machine (3 No.) 60000
3 Light Load Lathe Machine (2 No.) 300000
4 Sanding Belt Machine 65000
5 Pump Set & Treatment Tank 200000
6 Drying Chamber 600000
7 Electrification & Installation @ 10% cost of machinery 122500
8 Pre-Operative Expense 30000
9 Cost of Office Equipment 35000
10 Total Capital Cost 2412500
Working Capital:

S.No

Parameters

INR/Unit

Value

1

Workers (10 No.)

8000

80000

2

Manager (1 No.)

15000

15000

Raw Material & Utilities

3

Raw Material

180000

4

Utility per Month

15000

5

Water

1500

Other Contingent Expenses

6

Repair & Maintenance

3000

7

Transportation

3000

8

Telephone

1000

9

Other Consumables

1000

10

Advertisement & Publicity

2000

11

Postage & Stationary

1000

12

Insurance

10000

13

Miscellaneous Expenses

2000

14

Grand Total of Working Capital (1 Year)  

3774000

Turnover Calculation:

S.No

Parameters

Unit

Value

1

Production per Month

Pieces

2500

2

Selling Price per Product

INR

350

3

Turnover per Month

INR

875000

4

Annual Turnover

INR

10500000