Techno-Economic Analysis (tea) of Packaged Water Production in the University Community: Case Study of Lion Water Facility, Unn

This research presents a comprehensive techno-economic analysis of packaged water production
within the University of Nigeria, Nsukka, using Lion Water as a case study. The study investigates
the technical and economic feasibility of improving production efficiency, market distribution, and
profitability. The research assesses water sourcing, treatment, packaging, and distribution
processes to identify operational inefficiencies and propose optimization strategies. A market and
demand analysis was conducted to determine Lion Water’s market share relative to competitors
and assess supply constraints. Findings indicate that while Lion Water holds a dominant position
in the university community, its current production capacity is insufficient to meet demand, leading
to supply inconsistencies and potential market share erosion. A production simulation was carried
out using MATLAB, revealing that increasing machine capacity and shifts could effectively close
this supply gap. The optimization model proposed a cost-effective strategy for scaling production
while maintaining financial feasibility. The economic analysis examined capital expenditures
(CAPEX) and operational expenditures (OPEX) while projecting key profitability metrics such as
Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. The results showed
an NPV of approximately ₦286 million over five years, a high IRR of 74%, and a payback period
of 1.32 years, confirming the economic viability of production expansion. The study concludes
that investing in optimized production processes, improving supply chain logistics, and enhancing
energy efficiency would significantly improve Lion Water’s ability to meet current and future
demand. Key recommendations include phased capacity expansion, pricing incentives for bulk
buyers, energy diversification, and continuous market evaluation. These strategies will ensure
sustainable growth, operational efficiency, and long-term profitability for Lion Water in the UNN
community.