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Example:
Investment for the first year: 450.000 Reais
(including building, machines, manpower, propaganda,
lease of the ground, transportation, all operational costs)
Spring water business:
There are a lot of springs in the beautiful mountain region near Rio de Janeiro. The sample numbers are from a spring near to the city Petropolis, about 1 1/2 hour by car from Rio. On the property, there is already a well constructed which gives ca. 5000 l/hour of fine mineral water. The water is of excellent quality (I have the chemical analysis) and may be merchandised as high quality mineral water. However, the calculation is based on normal prices for drinking water sold in 20 l bottles.
The investment for the first year would be ca. 150.000 US$, including the production hall, the equipment, manpower, promotion costs, taxes and documents for company foundation, transportation costs, etc.
The preview for production in a pessimistic scenario is to produce 540.000 bottles (20 l) in the first year, which would result in a first year profit of 16% after tax (22% without tax) over the investment. The production can be raised by a) producing more than 8 hours a day or b) constructing a second well, which result in using the full production capacity. In this particular case, the owner of the land will only lease the ground. The lease is already included in the investment of 150.000 US$.
However, it might be even more interesting to buy land in this beautiful mountain region and to establish mineral water production on your own ground. For instant, there is 50 ha of ground with a spring producing 8000 l/hour, which costs 180.000 US$. The additional investment in the production facilities would be similar to the example above.
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