The latest in a cascade of similar firms, Mulugeta Mekonnen Melesse Bottled Water Company is breaking ground in Yibab, a rural kebelelocated a few kilometres away from Bahir Dar, Amhara Regional State. The total investment for the plant is expected to reach 100 million Br.

Sprawling across 4,000Sqm of land, the company has finalised drilling its two water wells for the production of 24,000lt of water an hour at its plant. The two wells are each 250m deep, and the company undertook the drilling itself at the cost of five million Birr. The entire project is expected to be finalised in six months.

Though a brand name has yet to be decided on for the bottled water, half of the construction has already been completed. This includes all substructural works, fencing, storage facilities and road networks, according to Fikrealem Ketema, the company's drilling project manager.

"We're waiting for the blowing machine to be imported and for treatment centres to start operations," he said.

The project, advised by Dallol Consultants, will produce 500ml, one-litre, and two-litre water bottles. Dallol, which has expertise in the fields of architecture, planning and engineering, has been advising a number of construction projects including textile factories, hospitals and resorts for nearly five years.

Mulugeta Mekonnen Melesse, the company behind the venture, was established over a decade ago and owns a flour mill as well as drilling and plastic bag production companies. It also engages in the export of cereal crops and pulse seeds and the import of machinery, spare parts and trading accessories.

Currently, there are a little over 100 bottled water companies operating in the country. But the rising number of new entrants to the industry shows that there has been little research into profitability, according to Ashenafi Merid, general manager at the Ethiopian Bottled Water, Soft drink, Fruits & Vegetable Processing Manufacturing Industries Association.

"The Association is currently assessing the viability of this businesses venture," he said. "We want to show the status of the industry and request the intervention of the government."

The supply capacity of the operational bottled companies in the country aggregates to 30 million litres of water a day, while the sales have not peaked above eight million, according to data from the Association, which also estimates that nearly 35,000 people are employed under it.

This shows that the manufacturers are operating well below their capacity, added Ashenafi.