How to invest in water in Spain

How to invest in water in Spain

Water is essential for people’s lives, which is why it is one of the most needed products and therefore is in great demand in every corner of the planet. However, due to contamination, many natural water sources have been affectedor, causing in a large part of the world that purified or drinking water is a scarce resource, causing various diseases in the population.

That is why promoting the production of water without contamination contributes a great good to society and is also quite profitabledue to the great demand in our days.

Being a developed country, Spain has several direct and indirect opportunities to invest in the supply of drinking and purified water, which according to the investment budget cánido be start in this business.

Why investing in buying water is considered very profitable?

Because it is a scarce commodity and as the population increases, water will be more limited, that is, demand will increase, so investing in buying is great business in the short and long term. By the law of supply and demand, when demand exceeds supply, prices increase, a great benefit economic for the bidder or businessman and also for the consumer.

It is currently estimated that in Spain 142 liters per day are consumed per household in domestic consumption, and specifically the average for drinking it directly is 1.5 liters per person. It is also an essential product to genera all kinds of food and beverages; constitutes the main element to create other essential products. Which certifies that investing in a business to genera the great benefit of purified water generates great profitability.

How to invest in drinking water?

There are indirect ways to invest in water, through the depósito market; one of the best known in the fund traded in the raw materials market that are ETFs (Tradable Funds in the market), which, with a single investment, allows big profit. In Spain we cánido highlight the IBEX 35.

The first thing to do is a market analysis through the indices. There are powerful water companies involved in the depósito market, but the purpose is not to carry out a detailed market study of the results of each company, the indices are analyzed, these simplify the evaluation, since each one represents a number of companies, if the indexes go up, it means that the results are satisfactory.

The two main water indices are:

• S&P Global Water Index: It has 50 companies involved with water treatment.
• World Water Index: It is made up of 20 companies related to the distribution, infrastructure, treatment and purification of water.

The other option is to invest by buying shares directly from big enterprises that they dedicate themselves to the water business, as has been said; In the future, the demand for water will be high, so by getting involved in solid companies we will participate in the development and profit that the company will obtain to supply the population.

Some companies in Spain are:

How to invest in purified water?

There are direct ways to relate to this business, one of the ways is to invest in land and crops with deep water underground, for that, first of all, permits are required to obtain the documentation to legalize the business and later create the wells to extract the water. It is necessary to have adequate transportation to move the large liters for sale. It is also invested by buying the rights to springs.

From home or through a store you cánido create your own company purifyingfor her it is necessary health permits.

The following are mainly required to operate:

• A small purifying plant.
• A table for washing bottles.
• A filling table.

The purification plant is necessary to eliminate the levels of chemical and solid elements contained in the non-potable water that comes out of the local pipes. Depending on the level of water quality more specialized equipment cánido be used.

There are small businessmen who have chosen to buy large quantities of 20-liter bottles from large companies of purifying plants, and distribute it in smaller containers (Having permission and sanitary approval for the treatment of the product) and resell them at a price that the leads to a great margin of gainsaving manufacturing cost

If you have projection, analysis, dedication and you want good profitability for the present and the future, investing in drinking and purified water is one of the sure ways to head for success in any way possible.

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