Detailed Project Report (DPR) on Vitamin Water

VITAMIN WATER

[EIRI/EDPR/ 0956] J.C.: 9586

HISTORY

J. Darius Bikoff, a self-proclaimed health nut born on September 21, 1961, first conceived of the idea of vitamin enhanced water in 1996. According to him, he was feeling "run down" and concerned he was catching a cold, so he took some Vitamin C and drank some mineral water. As he consumed the items, he started thinking about the idea of having them together instead of having to take them separately. He founded Energy Brands in May 1996 using his personal savings and contracting with an aquifer in Connecticut for the base water used. The individual products carried the Glacéau name, with the company's first product being Glacéau Smartwater. 

Reflecting on the company's early history, Bikoff notes that it was "very tough" as he struggled with founding the company having no actual experience in beverage manufacturing, beyond working in an aluminum fabrication factory. While launching his company, he was also having to deal with personal struggles including a divorce and having to file for bankruptcy. He started by personally introducing Smartwater to smaller independent natural food stores around New York, moving to a statewide launch when the product became successful. He used this same basic method, adding in "mom-and-pop stores", for the launches of Fruitwater and Vitaminwater in 1998 and 2000, respectively. By 2001, the company's drinks were sold in over 4,000 retail stores in the New York area. According to Bikoff, this enabled his products to go unnoticed by the large beverage makers until the product was firmly established when he could then cultivate relationships with various independent distributors opening the way for nationwide distribution.

Bikoff eventually allowed LVMH to buy a 30% equity share in the company. LVMH later sold the stake to another investor, who in turn sold it again. The shares ended up in the hands of India-based Tata Group in August 2006, which paid $677 million for the 30% equity, seeking to expand its American business interests. The following year, on May 25, 2007, Bikoff agreed to sell the company to The Coca-Cola Company for $4.1 billion. $1.2 billion of the sales went to the Tata Group for its 30% minority ownership, which Tata agreed to sell not wishing to be a subsidiary of Coca-Cola. Under the purchase agreement, Energy Brands remains nearly autonomous as a subsidiary of Coca-Cola, with Coca-Cola primarily operating with a hands off method, leaving Bikoff and Energy Brands principal operating officers in charge. In discussing the role of Coca-Cola, Bikoff states: "We run independently, we have our own offices. If Coca-Cola don't call me, I don't call them." 

In 2008, Energy Brands began launching its products in the United Kingdom with France following in 2009. The company eventually plans to expand to Australia, Canada, and Mexico. 

COST ESTIMATION

Plant Capacity            5000 Ltr./Day  

Land & Building (20,000 sq.mt.)    Rs. 6.85 Cr    

Plant & Machinery                    Rs. 13.20 Cr 

Working Capital for 3 Months    Rs. 59.77 Lac 

Total Capital Investment          Rs. 20.95 Cr 

Rate of Return                          18%

Break Even Point                      61%

CONTENTS

HISTORY

LEGAL DISPUTES

BUSINESS MODEL

EARLY COMPANY

FINANCIALS

PRODUCTS

VITAMIN WATER

MISLEADING ADVERTISING

FLAVORS

HOW ORDINARY WATER BECAME EXTRAORDINARY

B BIOTIN (ALSO KNOWN AS B7)

B3 NIACINAMIDE

B5 CALCIUM PANTOTHENATE

B6 PYRIDOXINE HYDROCHLORIDE

B9 FOLIC ACID

B12 CYANOCOBALAMIN

WHY VITAMIN WATER IS PRESENTLY ONE VERY POPULAR PRODUCT ON THE MARKET

HOW VITAMIN WATER USES ITS INGREDIENT LIST TO MARKET HEALTH

SPECIFICATIONS

MARKET SURVEY

BEVERAGES CONTAINING WATER-SOLUBLE VITAMIN E

DESCRIPTIONS

EXAMPLES

EXAMPLE 1

EXAMPLE 2

EXAMPLE 3

PREPARATION OF A SPORTS BEVERAGE CONTAINING EASTMAN VITAMIN E TPGS™

EXAMPLE 4

PREPARATION OF A DIETETIC BEVERAGE CONTAINING EASTMAN VITAMIN E TPGS™

EXAMPLE 5

PREPARATION OF A CLEAR NATURAL FRUIT JUICE CONTAINING EASTMAN VITAMIN E TPGS™

EXAMPLE 6

PREPARATION OF VITAMIN-FORTIFIED DAIRY PRODUCT CONTAINING EASTMAN VITAMIN E TPGS™

EXAMPLE 7

PREPARATION OF AN ALCOHOL-CONTAINING BEVERAGE USING EASTMAN VITAMIN E TPGS™

CONCENTRATED WATER-DISPERSIBLE VITAMIN COMPOSITIONS

EXAMPLE 1

EXAMPLE 2

EXAMPLE 3

EXAMPLE 4

EXAMPLE 5

EXAMPLE 6

EXAMPLE 7

LIQUID VITAMIN FORMULATIONS CONTAINING VITAMIN D ESTERS

DESCRIPTIONS

EXAMPLE 1

EXAMPLE 2

VITAMIN D PALMITATE PREPARATION

EXAMPLE 3

VITAMIN D ANALYSES

EXAMPLE 4

STABILITY STUDIES

LIQUID VITAMIN COMPOSITION

EXAMPLE 1

THREE COMPONENT COMPOSITION

1.1. PREPARATION OF THE LIQUID VITAMIN FORMULATIONS

1.1.2: SECOND LIQUID VITAMIN FORMULATION

1.1.3: THIRD LIQUID VITAMIN FORMULATION

1.2: STABILITY MEASUREMENTS

EXAMPLE 2

FOUR COMPONENT COMPOSITION

2.1: PREPARATION OF THE LIQUID FORMULATIONS

2.1.1: FIRST LIQUID FORMULATION

2.1.2: SECOND LIQUID FORMULATION

2.1.3: THIRD LIQUID FORMULATION

2.1.4: FOURTH LIQUID FORMULATION

2.2 STABILITY MEASUREMENTS

EXAMPLE 3

STABILITY OF THE LIQUID VITAMIN COMPOSITION IN A POULTRY FEED

EXAMPLE 4

STABILITY OF THE LIQUID VITAMIN COMPOSITION IN A POULTRY FEED

FRUIT DRINK WITH VITAMINS

METHODS

FRUIT JUICE CONCENTRATION

HIGH POTENCY VITAMIN WATER DISPERSIBLE FORMULATIONS

DESCRIPTIONS

EXAMPLE I

EXAMPLE II

EXAMPLE III

EXAMPLE IV

EXAMPLE V

EXAMPLE VI

EXAMPLE VII

EXAMPLE VIII

EXAMPLE IX

EXAMPLE X

WATER DISPERSIBLE VITAMIN E COMPOSITION

DESCRIPTIONS

EXAMPLES

EXAMPLE 1

EXAMPLE 2

EXAMPLE 3

EXAMPLE 4

EXAMPLE 5

EXAMPLE 6

EXAMPLE 7

EXAMPLE 8

AQUEOUS SOLUTION CONTAINING FAT-SOLUBLE VITAMIN K

METHODS

EXAMPLE

EXAMPLE 1

EXAMPLE 2

EXAMPLE 3

EXAMPLE 4

EXAMPLE 5

EXAMPLE 6

EFFECTS OF THE METHOD

TEST EXAMPLE 1

TABLE 1 SHOWS THE RESULTS.

TEST EXAMPLE 2

TABLE 2 SHOWS THE RESULTS.

STABILIZED VITAMIN A ADDITIVE

DESCRIPTIONS

THE ALCOHOL

THE VITAMINS

THE EMULSIFIER SYSTEM

ANTI-OXIDANTS

THE COMPLETE ADDITIVE

EXAMPLES

EXAMPLE I

EXAMPLE II

EXAMPLE III

EXAMPLE IV

EXAMPLE V

MULTI-VITAMIN AND MINERAL SUPPLEMENT

METHODS

DESCRIPTIONS

BEVERAGES CONTAINING STABILIZED VITAMIN C

EXAMPLE 1

EXAMPLE 5

EXAMPLE 6

EXAMPLE 7

EXAMPLE 8

EXAMPLE 10

FLAVORED WATER

AMERICAN MARKET

BRANDS

FLAVORS AND CALORIES OF WATER

INGREDIENTS

SUPERCITRIMAX

CHROMEMATE

EPIGALLOCATECHIN GALLATE

POTASSIUM

VITAMIN C

VITAMIN B6

VITAMIN B12

DIFFERENT TYPES OF VITAMIN WATER

FLAVORED WATER AND ENHANCED WATER

ENERGY VITAMIN WATER

ESSENTIAL VITAMIN WATER

REVIVE VITAMIN WATER

ENDURANCE - VITAMIN WATER

FOCUS VITAMIN WATER

MULTI-V VITAMIN WATER

POWER C VITAMIN WATER

RESCUE VITAMIN WATER

REVIVE VITAMIN WATER

STRESS B VITAMIN WATER

WHY VITAMIN B6 IS IMPORTANT?

WATER-SOLUBLE VITAMINS

QUICK FACTS

VITAMIN B-COMPLEX

TABLE 1: WATER-SOLUBLE VITAMINS AND THEIR CHARACTERISTICS

TABLE 2: MAJOR FOOD SOURCES OF WATER-SOLUBLE VITAMINS

TABLE 3: DIETARY REFERENCE INTAKES (DRI). SELECTED RECOMMENDED LEVELS FOR INDIVIDUAL INTAKES

VITAMIN C

DEFINITIONS

VITAMIN C

EXPERIMENT SETUP

THIS GLASS WILL CONTAIN 20 MG OF VITAMIN C.

SOME VITAMIN C SCIENCE PROJECTS AND EXPERIMENTS YOU CAN DO USING THIS METHOD:

HOW TO MAKE KIWI STRAWBERRY VITAMIN WATER

INGREDIENTS

MAKE YOUR OWN VITAMIN WATER

PROJECT DETAILS

MARKET POTENTIAL

BASIS AND PRESUMPTIONS

PROJECT CAPACITY

ADVANTAGEOUS LOCATION OF THE PROJECT

IMPLEMENTATION SCHEDULE

TECHNICAL ASPECTS

PROCESSING AND BOTTLING

QUALITY CONTROL AND STANDARDS

POLLUTION CONTROL

ENERGY CONSERVATION

DESCRIPTION OF PRODUCTION PROCESS

PRODUCTION PROCESS AS FOLLOWS:

DESCRIPTIONS AND SPECIFICATIONS OF EQUIPMENTS

EQUIPMENT MAKEUP

AIR CONVEYOR

RXGFD14-12-5 RINSING-FILLING-CAPPING MONOBLOCK

AUTOMATIC CAP ELEVATOR

TILTING CONVEYOR

4. SHOWERING & COOLING TUNNEL

AIR BLOW DRYER

INK JET PRINTER

AUTOMATIC PE FILM SHRINK WRAPPER

CARTON ROLLER CONVEYOR

ADDRESSES OF PLANT AND MACHINERY SUPPLIERS

WATER PUMP

MANUFACTURERS OF PVC PIPES

HIGH PRESSURE PUMP

PRESSURE VESSELS

ELECTRIC CONTROL PANEL

OZONE GENERATOR

STORAGE TANKS

STRETCH BLOWING MACHINES

REFRIGERATION UNIT (CHILLER)

AIR COMPRESSOR

TITTING CONVEYOR

AIR BLOW DRYER

INK JET PRINTER

SUPPLIERS OF RAW MATERIALS

BOTTLE CAPS

BOTTLE LABELS

MANUFACTURERS OF PET/PVC BOTTLES

CORRUGATED BOXES

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)