Mineral Water Bottle_30

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________

1 INTRODUCTION

Water forms an essential part of every living being. After air, water is the most

important necessity for life. Water plays a number of functions for the body. It

serves as the body's transportation system, it acts as a lubricant, it regulates the

body temperature etc. The eulogy for water is an unending thing. In fact more than

2/3rd of the human body is made of water. The importance of water for human

body can be well accessed from the fact that if the amount of water in our body is

reduced by just 1-2%, we feel very thirsty. If it's reduced by 5%, our skin will

shrink and we will have difficulty moving our muscles and if it's reduced by 10%,

we will die.

Moreover with this commodity being a human necessity it makes best

sense to do business in. As a normal human being requires on an average needs 2-

3 litres of water everyday and world population is more than 8 billion (growing at

2-3% annually), the business opportunity is humongous and the potential is largely

untapped. The facts about UNDP estimates, around 1.5 billion people worldwide

lack access to clean drinking water. Today, there are more people in the world’s

hospitals suffering from waterborne diseases than any other ailment. Some 6,000

children die of such diseases every day. In India over 1,600 Indians reportedly die

every day because of waterborne diseases all these have made the bottled water

business quite lucrative. In addition with getting pure drinking water from

municipal taps in cities and towns becoming a luxury the scenario has become so

lucrative in business sense that the opportunity is being misused by a number of

companies especially in our country. These companies are selling tap water under

the name of mineral water and are be-fooling consumers. The situation has got

aggravated by lack of awareness among common people and also due to lack of

initiatives on part of the government both on count of setting stringent norms as

well as on taking action against non-compliers. In fact one of the major factor for

flourishing of the sector is the public fear that water supplied by civic bodies is

impure.

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1.1 HISTORY OF MINERAL WATER

INTERNATIONAL SCENARIO:

POPULARITY OF MINERAL WATER:

The tradition of bottled water and mineral water is not very old. Even in western

countries the practice of bottled drinking water started in 1950s. The trend of having

mineral water gained grounds in the market.

Since ancient time people have used water from mineral springs, especially hot springs,

for bathing due to its supposed therapeutic value for rheumatism, arthritis, skin

diseases, and various other ailments. Depending on the temperature of the water, the

location, the altitude, and the climate at the spring, it can be used to cure different

ailments. This started the trend of using mineral water for drinking purpose to exploit

the therapeutic value of the water. This trend started gaining momentum in mid 1970s

and since then large quantities of bottled water from mineral springs in France and

other European countries are exported every year.

The concept of bottled has been quite prevalent in western countries due to greater

health consciousness and higher awareness about health and hygiene. The international

standards regarding bottled water are so stringent that for a particular brand of water to

be certified as bottled water it has to get approvals on four levels: federal, state, trade

association and individual company levels.

Worldwide there are thousands of companies bottling water for profit. Many of these

corporations have grown exponentially. Almost all of these corporations make

phenomenal amounts of money on a resource they pay very little for. Some leaders in

bottled industry across the globe are Thames Water, Perrier, Vivendi, Suez, Pepsi and

Coca-Cola.

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In United States, the bottled water industry is regulated on four levels: federal (by the

U.S. Food and Drug Administration as a food product), state, industry association, and

individual company. EPA (Environment Protection Agency) regulates public water

systems. FDA regulates bottled water that crosses state lines.

According to the study, the US is the world's largest consumer of bottled water and

Italians drink the most per person. Annual sales of bottled water increase at an annual

average of 10%. India is tenth highest bottled water consumer across the globe. Most

multi-national (MNC) companies view India as the next big market with a lot of

potential and growth possibility. Several MNCs are waiting in the wings to expand a

$ 287 billion global water market into India.

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THE EXPLODING BOTTLE WATER INDUSTRY

. Over the years bottle water has grown exponentially. Over the last five years, global

bottled water sales have recorded an average annual growth rate of 10%, outpacing the

soft drinks category as a whole, which grew annually at 6%. Today bottled water is the

fastest-growing beverage category in the world and the preferred beverage of choice in

our present on-the-go society.

In next few years, up to and probably beyond 2010, the growth rate will accelerate, and

that Asia Pacific will become the world's largest regional market for packaged water.

Growth is observed by watching the major multinational players as they move into

these areas, establishing joint ventures with leading local suppliers and bottlers as well

as through acquisitions.

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1.2 TYPES OF WATER

1) ARTESIAN WELL WATER:

Bottled water from a well that taps a confined aquifer (a water-bearing

underground layer of rock or sand) in which the water level stands at some height

above the top of the aquifer. Another name for bottled water. Accordingly, drinking

water is water that is sold for human consumption in sanitary containers and

contains no added sweeteners or chemical additives (other than flavors, extracts or

essences). It must be calorie-free and sugar-free. Flavors, extracts or essences may

be added to drinking water, but they must comprise less than one-percent weight of

the final product or the product will be considered a soft drink.

2) MINERAL WATER :

Bottled water containing not less than 250 parts per million total dissolved solids

may be labeled as mineral water. Mineral water is distinguished from other types of

bottled water by its constant level and relative proportions of mineral and trace

elements at the point of emergence from the source. No minerals can be added to

this product.

3) PURIFIED WATER :

Water that has been produced by distillation, deionization, reverse osmosis or other

suitable processes can be labeled as purified bottled water. Basically, this just means

that the bacteria and dissolved solids have been removed from the water by some

process, making it "purified." Other suitable product names for bottled water treated

by one of the above processes may include "distilled water" if it is produced by

distillation, "de-ionized water" if the water is produced by deionization, or "reverse

osmosis water" if the process used is reverse osmosis.

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4) SPARKLING WATER :

Water that after treatment and possible replacement with carbon dioxide contains

the same amount of carbon dioxide that it had at emergence from the source.

Sparkling bottled waters may be labeled as sparkling drinking water, sparkling

mineral water, sparkling spring water, etc.

5) SPRING WATER :

Bottled water derived from an underground formation from which water flows naturally

to the surface of the earth. Spring water must be collected only at the spring or through a

borehole tapping the underground formation finding the spring.

6) WELL WATER :

Well water is exactly what it sounds like- water from a hole made in the ground that

taps the water source.

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1.3 PURIFICATION PROCESS

Purity and safety are two major factors that should be taken care in sourcing and

processing of bottled water. Under ground water is used by it for filling the water.

Underground spring is carefully selected based on its portability and pathogen free

water. Great care goes in tapping this source. Only water below 25 meters is tapped.

This is to avoid any surface contamination to percolate and mix with underground

water source. Area surrounding the water collection tube at the surface is protected and

kept clean.

The under ground water goes through seven stages of purification process which is as

follows:

1) CHLORINISATION :

First of all water is taken out from six bore wells and stored in the tank and chlorine is

mixed in it. This is done to remove bacteria from water.

2) SAND FILTRATION:

Chlorine mixed water is passed through seven layers of sand in a tank. This way all the

major bacteria are taken out from water.

3) CARBON FILTER:

After sand filtration water is passed through carbon filter to remove the chlorine that

was mixed earlier.

4) ULTRA FILTRATION:

Under this method water is passed through a filter, which has the pores of 0.2 microns,

and even the biggest of bacteria is of 0.5 microns, hence through this filter even the

remotest bacteria and dust particles are taken out.

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5) REVERSE OSMOSIS:

As per the law TDS (total dissolved solids) are required to be maintained at the level of

70 - 110 ppm, through reverse osmosis TDS is maintained at 100 ppm.

6) OZONISATION:

Under this method ozone gas is mixed with water.

7) ULTRA FILTRATION:

Under this method ultra violet rays are passed through the water to kill water. This is

basically a precautionary step to purify water as after reverse osmosis no bacteria

remain in water.

After whole this process at last step bottles are passed through a white screen where a

quality in charge inspect each and every bottle to ensure that there are no dust particles

in the bottles and if they are found then those bottles are rejected.

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2 .BACKGROUND OF INDIAN SCENARIO

India has 16 percent of the world's population, 2.5 percent of the land mass and 4

percent of the world's water resources. These limited water resources are depleting

rapidly while the demands on them are increasing. Drinking water supplies in many

parts of India are intermittent. Transmission and distribution networks for water are

generally old and badly maintained, and as a result, are deteriorating.

Looking at this situation Mineral Water under the name ‘Bisleri’ was first introduced in

India was in Mumbai in glass bottles in two varieties – Bubbly & still in 1965 by Bisleri

Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri

who first brought the idea of selling bottled water in India. In 1967 Bisleri set up a

bottling plant for manufacturing and marketing its mineral water but failed. The brand

was later sold off to Parle in 1968-69. Mineral water market had its seeding as early as

1968-69 when Parle Group acquired the Bisleri brand from Bisleri of Italy for

launching Soda water but later launched bottled water also. The launch at that time was

a big flop as concept of buying water that too in bottled form was not accepted by the

Indian public and this category had no target market since bottled water is colourless,

tasteless and odourless, it was not an easy product to advertise. The market remained

dormant for quite long (for a period of 20 years or so). The market through out this

period was formed only by the premium products that too available through 5-star

hotels.

However, the real boost to mineral water came in the early-to-mid-1980s when they

switched to PVC packaging and later to PET bottles. The PET packaging did not just

ensure better transparency -- but could show sparkling clear water to the consumers. It

also meant better life for the water. Then there was a clear opportunity of building a

market for bottled water. The quality of water available in the country was bad.

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In early 1990s with onset of liberalization policy by the Indian government, coming in

of cola majors, sell off of local soft drink brands of Campa, Thumps up, Gold Spot etc

by Parle to Coke and other factors led Bisleri to test waters again. Bisleri re-launched

its bottled water in 1994. By this time with exposure of media and exposure to

international life styles, deteriorating levels of potable water, increase in a number of

water borne cases, increase in awareness about health and hygiene and other related

factors led to acceptability of concept of mineral water. The market has not looked back

ever since then and has grown leaps and bounds to such an extent that a number of

genuine as well as fly-by -night operators have entered it to milch it.

In the year 1999 the bottled water market was estimated at about Rs 300 crore, of which

Bisleri commanded a dominant 80 per cent share and had some 18 manufacturing

locations spread across the country.

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2.1 THE STRUCTURE AND ECONOMICS OF THE INDIAN BOTTLED WATER INDUSTRY.

At the fourth World Water Forum held in Mexico City in March 2006, the 120-nation

assembly could not reach a consensus on declaring the right to safe and clean drinking

water a human right. Millions of people the world over do not have access to potable

water supply. But it is good times for the bottled-water industry, which is cashing in on

the need for clean drinking water and the ability of the urban elite to pay an exorbitant

price for this very basic human need.

The fortunes of this more-than-$100-billion global industry are directly related to the

human apathy towards the environment - the more we pollute our waterbodies, the

more the sales of bottled water. It is estimated that the global consumption of bottled

water is nearing 200 billion litres - sufficient to satisfy the daily drinking water need of

one-fourth of the Indian population or about 4.5 per cent of the global population.

In India the total annual bottled

water consumption has risen

rapidly in recent times - it has

tripled between 1999 and 2004 -

from about 1.5 billion litres to five

billion litres. These are boom times

for the Indian bottled water

industry. India is the tenth largest

bottled water consumer in the

world. In 2002, the industry had an

estimated turnover of Rs.10 billion (Rs.1, 000 crores) and now in year 2006 the market

for bottled water is 1800 crore and expected to reach Rs. 5,000 crores by 2010.

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Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004,

the Indian bottled water market grew at a compound annual growth rate (CAGR) of 50

per cent.

With over a thousand bottled water producers, the Indian bottled water industry is big

by even international standards. There are more than 250 brands, nearly 80 per cent of

which are local. Most of the small-scale producers sell non-branded products and serve

small markets. In fact, making bottled water is today a cottage industry in the country.

Leave alone the metros, a bottled-water manufacturer can even be found even in a one-

room shop, in every medium and small city and even some prosperous rural areas there

are bottled water manufacturers.

Despite the large number of small producers, this industry is dominated by the big

players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, and so on. Parle was the first

major Indian company to enter the bottled water market in the country when it

introduced Bisleri in India.

The rise of the Indian bottled water industry began with the economic liberalisation

process in 1991. The market was virtually stagnant until 1991, when the demand for

bottled water was less than two million cases a year. However, since 1991-1992 it has

not looked back, and the demand in 2004-05 was a staggering 82 million cases.

The major growth in packaged water, however, was in the bulk water segment.

According to estimates, bulk water packs of 20 litres, targeted at the institutional and

home segments, grew at a rate of 30-40% in 2002 alone. Bisleri re-invented its 20-litre

jumbo home pack, fitted with a spout, to acquire a more ‘consumer-friendly’ image.

Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500

ml bottles, one-litre bottles and even 20- to 50-litre bulk water packs. The formal

bottled water business in India can be divided broadly into three segments in terms of

cost: premium natural mineral water, natural mineral water and packaged drinking

water.Premium natural mineral water includes brands such as Evian, San Pelligrino and

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Perrier, which are imported and priced between Rs.80 and Rs.110 a litre. Natural

mineral water, with brands such as Himalayan and Catch, is priced around Rs.20 a litre.

Packaged drinking water, which is nothing but treated water, is the biggest segment and

includes brands such as Parle Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina.

They are priced in the range of Rs.10-12 a litre. Consumption of bottled water in India

is linked to the level of prosperity in the different regions. The western region accounts

for 40 per cent of the market and the eastern region just 10. However, the bottling

plants are Concentrated in the southern region - of the approximately 1,200 bottling

water plants in India, 600 are in Tamil Nadu.

Today India is one of the biggest and most attractive water markets in the world. The

boom time for Indian bottled water industry is to continue- more so because the

economics are sound, the bottom line is fat and the Indian government hardly cares for

what happens to the nation's water resources. Most multi-national (MNC) companies

view India as the next big market with a lot of potential and growth possibility. Several

MNCs are waiting in the wings to expand a $ 287 billion global water market into

India. There is a huge market being exploited by the packaged water industry, and it's

growing at 50% per annum.

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2.2 BIG PLAYERS KEEN TO GET INTO MINERAL

BOTTLED WATER

The Rs. 1800 crore bottled water market is witnessing hectic activity with many

players entering the fray in the last one-year and still more to come. Part of the fast

moving consumer goods (FMCG) sector, bottled water is the only segment to have

shown phenomenal growth of about 50 per cent annually.

The market is expected to continue to grow at a healthy clip. In fact, in the last two

years, there has been a doubling of growth. The single largest share in the mineral water

market might still belong to an Indian brand -- Parle's Bisleri brand which has

differentiate. It has now donned green colours to sell natural mineral water and has a 40

percent share -- multi-national corporations are not far behind. Now coke and Danone

are vying to purchase Bisleri.

The success of bottled water could be attributed to two factors. First, it has been an

underdeveloped business for a while now and, second, soft drink manufacturers have

priced themselves out by a long shot. The prices of soft drinks have, in fact, doubled in

the last ten years and this has happened because the price of concentrates has shot up

during this period.

Nestle India entered into this market with the launch of its brand `Pure Life' in New

Delhi. It plans to grab a 50 per cent market share in the next two years and emerge as a

strong player. The company has not ruled out acquiring existing brands. The water is

bottled at Nestlé’s new plant at Samalkha in Haryana. Nestle has already launched two

of its global premium mineral water brands `Perrier' and `San Pellegrino' which are

targeted at niche markets.

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In fact, soft drink major Coke launched its Kinley brand of bottled water and Pepsi

its global brand Aquafina. Pepsico is reportedly contemplating two more pack sizes for

its bottled water. Kinley's new product `Chhotu' Bailley, which is a 350 ml bottle, is

introduced by Parle Agro. Kinley water was launched in August 2000 in one-litre

bottles For Rs.10. The water was produced at Coca-Cola's three Greenfield

manufacturing plants at Bidadi near Bangalore, Dasna in Uttar Pradesh and Goa in its

first two years. Currently, Kinley is being manufactured in 15 bottling plants across the

country and according to Coca-Cola India. Hindustan Coca-Cola Bottling (HCCB), the

bottling unit of Coca-Cola in India, is going to launch Bonaqua, a water brand from

Coke’s global stable. Bonaqua in all probability will end up competing with Coke’s

existing water brand Kinley.

Now even Godrej group of foods and beverages is all set to enter into the mineral

water segment with its exclusive range of bottled mineral water 'Aava', currently being

sold in limited regions in the country. Bottled mineral water by Godrej, 'Aava' is

sourced from the Aravalli and is currently being retailed in Gujarat, Mumbai and Pune.

However, the company plans to market it at a much larger scale. Aava is available in

four different sizes. Cup-Cap Bottle (one litre bottle with a unique cup for drinking),

Sports Bottle (750 ml bottle with unique "pull-push cap"), Aava Mini (200/300 ml

bottle that's easy to carry), and Family Pack (20 litre pack with spill-proof cap for home

or office use).

With more than 200 players jostling to be the thirst-quenching favorite of the Indian

consumer, the business is growing at a rate of over 50 per cent annually. The

country's bottled water business is estimated to be around Rs. 1,800/- crore of which

the branded market accounts for Rs. 1200 crore. since bottled water started out as a

prestige product in India, companies offered retail margins of 20% to 40% against 8%

to 10% on soft drinks.

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2.3 SOME OF THE STANDARDS GOVERNING THE BOTTLED

WATER INDUSTRY ARE:

Water is classified as bottled water or drinking water, if it meets all applicable

federal and state standards, is sealed in a sanitary container and is sold for

human consumption.

Bottled water cannot contain sweeteners or chemical additives (other than

flavors, extracts or essences) and must be calorie-free and sugar-free.

Flavors, extracts and essences -- derived from spice or fruit -- can be added to

bottled water, but these additions must comprise less than one percent by weight

of the final product.

Beverages containing more than the one-percent-by-weight flavor limit are

classified as soft drinks, not bottled water.

Bottled water may be sodium-free or contain "very low" amounts of sodium.

Tap water uses Chlorine as disinfectant bottled water uses Ozone as a

disinfectant.

Bottled water should not contain chlorine

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2.4 BOTTLED WATER SALES SEASONWISE

India’s population which is more than 1 billion needs between 2-3 billion litres a day.

More than 250 brands of bottled water are being retailed across the country.

An estimated 900 million liters of bottled water is bought every year.

As we can see from the diagram above that most of the sales of Bottled water comes in

the summer season. Therefore, the right time to launch such type of product is summer

season.

In monsoon time also a good response can be generated because there are people who

are very much conscious of their health and this makes them to go for packaged water.

Therefore, the sales are good in rainy season.

In winter season the sales are very low because of climatic conditions.

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2.5 BRAND WISE SHARE

BRAND WISE MARKET SHARE %

The Indian bottled water market, which has more than 250 brands. According to

industry estimates, the main consumers of packaged water are no longer restricted to

the upper class but include middle class and lower-middle class families as well. The

'rural' market is currently dominated by tourists and travelers; packaged water is now

beginning to be seen as an essential appendage to any form of travel.

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The ORG-MARG survey conducted recently shows that the market leader Bisleri is

having 40% market share and have an annual sales of around 500-600 crore. Kinley

follows it with a 24% share. The other brands including Aquafina and Bailley constitute

12% & 7% per cent market share in the bottled water market.The Samsika survey

further says that there are more than 250 brands in the water market. Out of this, two

are national brands, 17 regional. One thing is very clear from the two surveys

conducted that the market leader is Bisleri with Kinley, Aquafina, and Bailley are the

trailers, and now with Manikchand into mineral water, the competition is becoming

tough.

The South, which is prone to water shortages, is one of the industry’s largest markets.

Chennai alone accounts for a quarter of the revenue of the Rs 1,800-crore packaged

water industry. More than nine hundred thousand litres of water are sold in this city

every day, of which 300,000 litres and 200,000 litres are reportedly supplied by

multinational water brands and Parle’s Bisleri, respectively

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3. MARKET CATGORISATION

The market of packaged drinking water is categorized as follows:

o Theatres / cinema halls/ multiplexes.

o Corporate.

o Caterers.

o Picnic spots, Clubs, Gymkhanas.

o Hotels.

o Resorts.

o In-flight kitchens.

o College canteens.

o General Stores etc.

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3.1 CATERERS

Brand Share:

POPULARITY OF VARIOUS BRANDS AMONG CATERERS

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PAYMENT TERMS:

Other Findings:

Price closely followed by Service, Storage, Ease of operation & Availability are

the key factors affecting the buying decision process. They are willing to pay only

unto a maximum of Rs 2.50 per liter which is too below the price that any branded

player can afford to sell

Credit is a key factor that was revealed by most contractors after intensive

probing. The credit period expected by most was from 15 days to a month. They

mostly avoid dealing directly with companies for this very reason & prefer to buy

through the company’ intermediaries who provides them the necessary credit

Most contractors expect the provider to supply directly to the wedding/party site,

as they generally do not have the space to stock the bottles.

Brand name has absolutely no relevance to them

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3.2 CINEMAS

Brand Share:

MARKET SHARE OF VARIOUS BRANDS IN CINEMA HALLS IN 1 LITRE

PACK

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PAYMENT TERMS - IN CINEMA HALLS

Frequency of Visit: Twice a week.

Other Findings:

Price closely followed by Brand Name, Convenience, & Service are the important

factors that affect the buying decision process

Cinema halls, Cyber Cafes, Bowling Alleys, Video game parlors are some places

where people generally go to have a nice time.

The average time that a person spends at the above ranges between 2-5 hours for a

cinema hall to an hour for a cyber café.

The above centers already have the kiosks of the cola companies like Coke, & Pepsi

along with the vending machine of Nescafe. Thus there definitely is a potential for the

introduction of a kiosk vending pure water in these categories of outlets

Purchase frequency would vary to as low as thrice a month in a cyber café to as high

as twice a week in case of Amusement parks like Essel world & Water Kingdom

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Cash70%

Credit30%

Cash

Credit


3.3 HOTEL AND RESTAURANT

MARKET SHARE OF VARIOUS BRANDS IN HOTELS AND

RESTUARANT

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PAYMENT TERMS- IN HOTELS & RESTAURANTS

PAYMENT TERMS - HOTELS & RESTAURANTS

Service Frequency: Alternative Day

Findings:

Price closely followed by Service, Taste of water and Ease of operation are the

important factors that affect the buying decision process.

Hygiene is a very important factor when a customer decides to snack/eat in a

particular outlet. More so when we interviewed food stalls in Juhu Chowpatty a

majority of the food stall owners said that they now provide their customers

with the 1 liter Bisleri bottle as many customers refuse to accept the water

offered to them.

Respondents showed a fair level of brand awareness but there was no distinct

preference to any particular brand. Bisleri had a fair level of unaided recall vis-

à-vis other brands like Bailey, Kinley, etc.

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35%

65%

CashCredit


3.4 RETAIL OUTLET FINDING:

Small Space

Less Quantity and more frequency of purchase

Prefer Credit facility

Look out for schemes.

Bigger Margin, More preferences.

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4. BOTTLED WATER MARKET IN MUMBAI

MUMBAI MARKET POPULATION :

Estimates of the present population are in the range of 18 to 19 million. Mumbai's

population has grown most rapidly in the years after India's independence.mumbai

accounts 12 percent population of Maharashtra.

YEAR WISE COMPARISON:

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4.1 PER CAPITA CONSUMPTION

Nearly 80 per cent of the demand for bottled water comes from metros.

20 LITRES JAR:

SR . NO CITY / AREA JAR PER OFFICE

1 SOUTH MUMBAI 48

2 NORTH MUMBAI 54

3 WEST MUMBAI 52

4 EAST MUMBAI 64

5 TOTAL 218 JAR PER OFFICE

MARKET SIZE BY VOLUME AND VALUE :

The market size of Packaged Drinking Bottled water is around 1800 crore, and Mumbai

market constitute around 10% which is 180 crores. Market has grown by around 500

crores in the last few years. Current growth rate estimated is 50%, which is one of the

highest of all industries.

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4.2 BRANDS AVAILABLE :

Some of brands that are available in Mumbai. Few of them are as follows:

BRANDS LITRES - 1 LITRE. ETC 20 LITRES

Bisleri Yes Yes

Kinley Yes Yes

Aquafina Yes No

Bailley Yes Yes

Brilliant Yes Yes

Hello No Yes

Spakel Yes Yes

Harnil No Yes

Apurva No Yes

Bally No Yes

Krishna No Yes

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4.3 RETAIL OUTLETS

There are above 1,00,000 retail outlets in Mumbai.

SR. NO CLASSIFICATION PERCENTAGE

1 GROCERY & GENERAL STORES 40%

2 DEPARTMENTAL STORES 03%

3 COLD DRINK HOUSE 02%

4 HOTELS & RESTAURANTS 5%

5 BEER BARS 02%

6 PAN BIDI SHOPS 28%

7 OTHERS 20%

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5. BRAND WISE DETAILS

5.1 PARLE BISLERI PRIVATE LIMITED

Company: Parle Bisleri Private Limited.

Brand: Bisleri

Address: Parle Bisleri Pvt. Ltd., Western Eastern Highway, Andheri (E).

Product: Packaged Drinking Water

Design:

Quality: ISI Marked.

Packaging: Pet Bottles

Target Market Segment: Health Conscious people

Positioning: Safe Water

Trade Promotion: Corporate Event, Play safe Campaign, Mobile Van,

Stressing on Seal

BRAND DETAILS:

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A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________ It have developed 8 unique pack sizes to suit the need of every individual and are

present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable

packs & 5L, 20L which are the returnable packs. Parle’s bisleri have an annual sales

of around 500-600 crore. In terms of volumes, the North and West remain Bisleri's

biggest performing markets, despite the brand's sustained national-level presence. It's

headquarters are in Mumbai. It's operations run throughout the subcontinent of India

and is one of the leading Mineral Water supplying companies in India. Currently Bisleri

has 8 plants & 11 franchisees all over India. Today, Bisleri’s distribution is well into

the villages and the paan-walas are one of our biggest distributors.

Bisleri have launched it new product 'Bisleri Natural Mountain Water'. The pioneer

of the bottled water in India has also gone for a makeover, changing its corporate

colour from blue to aquagreen.

.

DISTRIBUTION: Bottling plant (Andheri)

For selling 1 Litre, etc.

The Company directly approaches the retailer. They have tracked Mumbai through

various routes and accordingly they service. Their major hub is Santacruz, Vile Parle &

Andheri in Suburbs.

Schemes: One Litre:

One box free on five box

Half Litre :

One Bottle free on 1 Box

For 20 Litre. Jar .

Bisleri sell their product through their own network and they have also appointed

Distributors for each area to sell their product.

Bisleri-DISTRIBUTOR Details for 20 Ltr: - South Mumbai

__________________________________________________________________33

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________Distributor: Nos. 16

Average sales per Distributor: 110 Jar per day.

MRP per jar: Rs. 60

Net Cost Price (for Distributor): Rs. 43

Margin of Rs. 17 (28.33%)

Bisleri on their Own. (South Mumbai)

Service Frequency: Alternate days

Vehicle: Nos. 12

Manpower per Vehicle

1 loader

1 Driver

1 salesmen

Schemes:

1 Jar Free on 10 jars.

88 Jars free on 700 jars, if bought within 4 days.

All Schemes are for Distributors in South Mumbai.

Distribution Weakness:

Company is not addressing the compliant from distributor and end user.

Company does not use Polycarbonate Jars in 20 Litre, which result in loss of

face value and ultimately losing customer.

5.2 HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED

__________________________________________________________________34


Company: Hindustan Coca cola Beverages Private Limited

Brand: Kinley


Design:

Quality: ISI Marked.

Packaging: Pet Bottles, Polycarbonate Jars


Positioning: Safe Water

Trade Promotion: Effective TV ads (Boond Boond mein vishwas), Banking on Parent

__________________________________________________________________35

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________ Brand, Mobile van.

BRAND DETAILS:

Currently, Kinley is being manufactured in more than 18 bottling plants across the

country. According to Coca-Cola Coke had invested nearly $1 billion in India between

entering the market in 1993 and December 2001. Hindustan Coca-Cola Bottling

(HCCB), the bottling unit of Coca-Cola in India, is now going to launch Bonaqua, a

water brand from Coke’s global stable. Bonaqua in all probability will end up

competing with Coke’s existing water brand Kinley.

DISTRIBUTION: Bottling plant (Wada, Thane District)

For selling 1 Litre. etc.


various routes and accordingly they service.

Schemes: One Litre:

One Box free on 2 Box (Net Rs. 80 per Box)

Half Litre:

No scheme

For 20 Litre. Jar

Kinley sell their products through their own network only. They have appointed HDA

(Home delivery Agent) for some area to sell their product.

Service Frequency: Alternate days

__________________________________________________________________36

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________ Manpower per Vehicle

1 loader

1 Driver/salesmen

1 salesmen

MRP per jar : Rs. 65

Net cost price (Distributor):Rs. 50.

Margin: RS. 15 ( 23.1%)


Not been able to penetrate in interior area since they have not appointed Distributors in

most of the area.

5.3 PEPSICO INDIA LIMITED

__________________________________________________________________37

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________Company: PepsiCo Ltd.

Brand: Aquafina

Product: Packaged Drinking Water.

Design:

Quality: ISI Marked

Packaging: Pet Bottles


Positioning: Safe Water Trade Promotion: Banking on Parent Brand, Banners.

BRAND DETAILS:

PepsiCo India launched the packaged water bottle brand Aquafina in the year 2000 in a

__________________________________________________________________38

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________750-ml pack. It have now developed 4 unique pack sizes and are present in 500ml,

750ml,1 litre, 2 litre. Aquafina is manufactured in more than 15 plants across the

country.

DISTRIBUTION: Bottling plant (Chembur, Roha)

For 1 Ltr. etc.



Schemes:

One Litre

One Box free on 3 Box (Net Rs. 80 per Box)

Half Litre

No scheme

For 20 Ltr jar

The Company has not entered the 20-litre Packaged water Market


It seems that the Company is not pushing their packaged water brand

“Aquafina” and concentrating on Beverages market.

Many times their products are not available in the market.

Aquafina packaged Bottles water is given in a scheme to promote their

Beverages brand.

5.4: PARLE AGRO PRIVATE LIMITED .

__________________________________________________________________39

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________Company: Parle Agro Ltd.

Brand: Bailley


Design:

Quality: ISI Marked



Positioning: Safe Water Trade Promotion: Mobile Van

BRAND DETAILS:

Bailley have developed 4 pack sizes of bottled mineral water and they are present in

330ml, 1 litre, 1.5 litre, 20 litre jars this company have taken full advantage of the

__________________________________________________________________40

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________distribution network that was set up to market the hugely successful mango drink

Frooti. It has 18 operational units and all but two of them manufacture bottles as well.

Bailley have used the franchising route to ensure wider geographical coverage and to

augment capacities.Bailley has 16 franchisees and it plans to add another six soon.

DISTRIBUTION: Bottling plant (Patalganga, Panvel)

For 1 Ltr. etc .



For 20 Ltr. jar

Bailey sells their product through their own network in South Mumbai. They have

appointed Distributors in North Mumbai and other parts.

Service Frequency: Twice in a Week.

Manpower per Vehicle

1 loader

1 Driver/salesmen

MRP per jar: Rs 60

__________________________________________________________________41

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________Net Cost Price to Distributor: Rs. 46-48

Margin to Distributor: Rs. 14(23.3%)


The Company is losing out its share on every front.

Lethargic Approach towards Market.

No Advertisement, Lack of Aggressiveness.

5.5 MOUNT EVEREST MINERAL WATER LIMITED

__________________________________________________________________42

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________Company: Mount Everest Mineral Water Ltd.

Brand: Himalayan

Product: Natural Mineral Water

Design:

Quality: ISI Marked



Positioning: Mineral Water Trade Promotion: Direct Selling

BRAND DETAILS :

Himalayan Natural Mineral water is the only internationally accepted quality natural

mineral water from India. It have developed 3 pack sizes and are present in 500ml, 1

__________________________________________________________________43

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________litre, 1.5 litre. It is graded equivalent to "Evian" and "Vittal" from France. CSE test

results also show that the brand 'Himalayan' is one of the safest mineral water brands.

This company is an ISO-9002 company. It is also exported to USA, Japan, France and

other developed countries.

DISTRIBUTION: Bottling plant (Himachal Pradesh)

For 1 Ltr. etc.

The Company is targeting Star Hotels and has penetrated in most of the star Hotels.

MRP Rs. 15 (One Litre).

For 20 Ltr. jar

They have not ventured the 20 Litre Market.


Not been able to penetrate in the Market

Failed to create awareness for their USP

Low on Advertisement and other awareness program

Other Information

It is an ISO-9002 certified Company

The Company is one of the integrated natural Mineral water bottling plant in

Asia

It is a subsidiary of Balsara group for Companies

6. SWOT ANALYSIS OF THE PACKAGED WATER

INDUSTRY

__________________________________________________________________44


STRENGTH

Ø The industry is growing @ 50%.

Ø In India the market is huge & untapped.

Ø Growing awareness among the people about the importance of mineral water.

Ø pure drinking water from municipal taps in cities and towns becoming luxury.

WEAKNESS

Ø Many players entering in the race.

Ø Any local person can start manufacturing.

Ø Rural population is not using the packaged water.

Ø Not very economical.

Ø Quality not properly maintained e.g. Bisleri & hence has bad effect on the

whole.

OPPORTUNITY

Ø Sustained Market growth increase in coming years

Ø Literacy rate growing and hence the awareness of safe drinking water to avoid

the diseases.

Ø Huge population & untapped market.

THREAT

Ø Many substitutes available

Ø Too many players will dilute the market & the profit margin

7. MARKET SEGMENTATION

__________________________________________________________________45


The mineral water market is segmented according to the type of consumers:

Ø Foreign Tourists:

Foreign tourists have been the main consumers of the mineral water as

they face a lot of digestion problems due to different food habits.

Ø Domestic Tourists:

Domestic tourists have switched to mineral water mainly because of

safety and hygiene factors.

Ø Fashion Conscious:

Like soft drinks, drinking mineral water is also considered fashionable by

some people.

The mineral water consumer is mainly in the age group of

20-35 years and is an educated middle class person. This is also the

segment of fruit drinks, which have usually been positioned as fun

and health drink for young adults.

The mineral water market is also segmented along pack sizes:

Ø One litre bottle: It is meant to spell safety and security for

consumers. It is positioned on a prestige platform for the achiever

segment - who like to make a fashion statement by drinking mineral

water. This segment gets the maximum sales.

Ø 500ml bottle: This size has been introduced in the market to target

the individual and local travelers.

Ø PET bottles: The size of the PET bottles varies from 10 to 20 litres.

These are mainly for institutional sales (Wedding parties, Hotels,

Corporates, etc.)

8. CONSUMER HABITS AND PRACTICES

__________________________________________________________________46


Ø Consumers are growing more health conscious and are more careful of

their drinking habits.

Ø Brand loyalty is very low as all the products taste the same so they can buy

just any product which is on the shelf, same as that of soft drinks and fruit

beverages.

Ø Availability in the chilled form and brand awareness plays a crucial role in

purchase decisions.

Ø While there is no aversion to consumption of mineral water by any age

group, this product is mainly consumed by the people in the age group of

20-35 years who have less attraction of soft drinks or other synthetic drinks

whereas youngsters look in for soft drinks and fruit beverages to quench

their thirst.

Ø Visibility is another factor that should be taken care of by the companies as

consumers are not very brand loyal and consume whatever is in front of

them

9. LEGAL REQUIREMENTS

__________________________________________________________________47


The bottled water industry is governed by PFA and BIS standards. Some of the key

highlights of these legislations are:

Ø Mineral water is covered under the Prevention of Food Adulteration Act

(PFA), while drinking water is not under its preview.

Ø Drinking Water is excluded from the purview of the (PFA) Prevention of

Food Adulteration Act, 1954 accept for the specification that water used in

the preparation of a food article shall be free from micro organisms likely to

cause diseases and should be free from chemical constituents that might

impair health.

Ø The PFA rule on mineral water is that it must be free from dirt, foreign

matter or any other ingredients injurious to health and has to be packed in

clean and sterile containers.

Ø The Bureau of Indian Standards (BIS) has provided standards for both

drinking water and mineral water but compliance hitherto was voluntary.

Ø To regulate the quality and price of bottled water, BIS approval has been

made mandatory w.e.f. end of 1999.

Ø Mineral water shall be packed in clean, colourless, transparent and tamper-

proof bottles made of polyethylene conforming to the IS 10146 standards.

Ø The standards laid down under PFA Act do not prescribe any minimum

quantity of minerals to qualify as mineral water.

Ø Hitherto Indian laws do not stipulate the minimum mineral content level

required for water to be labelled as a mineral water

__________________________________________________________________48


Ø The BIS does not lay down any guideline or practice for processing water.

Ø There is no specific industrial licensing policy for the bottled-water sector.

Thus any one can set up a plant can do so without establishing the source of

the water and the technology used to purify it.

Ø Both the PFA Act and BIS state that the water must be completely free of

bacteria like salmonella, E-coli, faecal streptococci, v. cholera and shigella

that cause a range of illnesses such as cholera, typhoid, dysentery and

various types of gastro-enteritis

Ø Both the PFA and BIS lay down standards for metals like lead, mercury,

arsenic, aluminium and barium which cause a range of disorders.

Ø The BIS lays down a minimum of 150mg/l and a maximum of 700 mg/l of

TDS for mineral water.

Ø The PFA rules do not prescribe any minimum TDS levels but does mention

the maximum of 1500mg/l.

10. PACKAGING AND LABELLING

__________________________________________________________________49


PACKAGING

The product shall be packed in sealed retail containers suitable for preventing the

possible adulteration or contamination of water and shall be in accordance with the

applicable sections of the (Draft) Code of Hygienic Practice for Packaged (Bottled)

Drinking Waters.

STANDARD PERTAINING TO LABELING OF PRODUCT IN THE

INDUSTRY:

Label should have consumer brand name.

Label should have the name of the product category.

Label should have name and address of the manufacturer.

Label should have net weight or volume.

Label should have the batch number.

Label should have the name of source or place of origin of the product.

Label should have the date of packaging.

Label should have the date of expiry.

Label should have direction for storage.

Label should have treatment for disinfections.

Label should have the license or certification from the concerned authority.

11. TAXES & ADVERTISING

__________________________________________________________________50


The raw material cost is just 0.02-0.03 Paise and treatment and purification involves 25

paisa per litre. The next cost is the cost of bottle, cap and carton, label cost, which is

Rs.2.50 at lower end. But the biggest cost is the transportation and marketing cost

which forms a huge chunk of the price.

All the tax charges are quite high. The taxes are as under:

__________________________________________________________________51


SR.

NO

Types of Taxes charged &

cost incurred.

%

contributi

on

1 Octroi 4.5

2 Sales Tax 7.5

3 Excise 15

4 Transportation 10

5 Distribution Margin 12

6 CNF’s 2-3

7 Retailers Margin 40

8 Advertising – cost varies --

ADVERTISING

Advertising is any paid form of non-personal presentation & promotion of ideas, goods

or services by an identified sponsor.

Modes of advertising:

Ø Newspapers, billboards, glow signs, banners, inflatable etc.

Ø TV.

Ø Mails.

Ø Radio.

Ø Magazines.

Ø Yellow pages.

Ø Newsletters.

Ø Brochures.

Ø Telephone.

Ø Internet.

12. FUTURE OUTLOOK

__________________________________________________________________52


Today the demand of bottled water is increasing at a much higher rate that of

carbonated soft drinks. The market size of bottled water too is expected to

surpass the size of soft drinks market in near future. The next player which is

waiting to launch its brand in the market is Nestle. Nestle had made its

intentions very clear about its prospective entry into the market early 2000.

The company has already tasted success of its mass-market brand, Pure Life

in developing countries like Pakistan and Mexico. The next in queue seems to

be HLL, which too has identified the bottled water as a growth area for

future. The company is presently looking or some suitable brand for

acquisition. Britannia too evinced some initial interest in the market but now

seems to have postponed its plans.

The existing players too are set to expand their distribution network to have

their presence across the country. The market is also expected to undergo a

major consolidation phase. As one of the major factors that's important for

success in the market is the distribution network, the players with deep

pockets are expected to go for acquisition of existing small regional players

and spread their network across the country. Already Coke has tied up with

Yes for manufacturing of its brands in areas where it doesn’t have presence.

Though Coke and Pepsi have both, well established distribution network as

well as bottling & manufacturing plants, they seems to be at an advantage but

players like HLL and Nestle with strong financial muscle can easily turn the

tables in their favour through acquisition route acquisitions. It is expected that

the market would continue to grow at a healthy rate of 50 %. In year 2006 the

market for bottled mineral water in India is estimated around 1800 crore and

expected to reach Rs. 5,000 crores by 2010

13. THE GOVERNMENT APATHY

The government of India announced a new water policy based on privatization.

__________________________________________________________________53


The social activists allege that this policy was shaped entirely by the World Bank

recipes for the water sector.

In comparison to global standards India's bottled water segment is largely

unregulated. Safe water is rated with a different yardstick in different countries. In

India, the aspect has been overlooked for long. Indian consumers tend to believe

that any bottled water is safe water. This may not be the case.

Several small players have entered the trade in India to capitalize on the craze,

with no check on them. Some serious doubts have been raised about the safety of

so-called bottled water available. There has hardly been an involvement of any

statutory body in defining specific standards. The Bureau of Indian Standards

(BIS) has just recently got involved in the process.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM)

have proposed expediting setting up of Water Regulatory Authority, urging the

Planning Commission to build a strong case for its creation to the government.

The Chamber's proposal which will be submitted to the Deputy Chairman,

Planning Commission, Dr. Montek Singh Ahluwalia by its President, Anil K.

Agarwal, stresses that water is crucial and hardly any good job is being done in

this area. As only a third of country is under irrigation with assured canal water or

ground water supplies. Maintenance of irrigation system is poor which is partly

because water tariff are very low and do not cover the costs of tariff and

maintenance, said the Chamber proposal.

14. CSE REPORT ON MINERAL WATER BRANDS

__________________________________________________________________54

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________Bottled water is contaminated by pesticides. Gaping holes in regulations and

corporate irresponsibility in the fastest growing segment of the beverage industry

make a mockery of public health

We take it for granted that the bottled water we drink is safe. But a Down To Earth

exposé, based on tests conducted by the Pollution Monitoring Laboratory of the Centre

for Science and Environment (CSE) shows otherwise.

After analysing 17 brands of packaged drinking water sold in and around Delhi and 13

brands from the Mumbai region, the CSE lab found the samples to contain a deadly

cocktail of pesticide exceeding the standards specified as safe for drinking water.

The samples had enough poison to cause in the long term, cancer, liver and kidney

damage, disorders of the nervous system, birth defects, and disruption of the immune

system. Pesticides do not kill immediately, but can cause irreparable health disorders as

they accumulate in the body fat.

The CSE lab tested for two types of pesticides: organochlorine and organophosphorus.

The findings were appalling. The four most commonly found pesticide residues were

lindane, DDT, malathion and chlorpyrifos. Using European Economic Commission

norms for maximum permissible limits for pesticides in packaged water, the CSE lab

tests of samples from the Delhi region showed that on average, each sample contained

36.4 times more pesticides than the stipulated levels. The Mumbai samples were a

shade better, primarily because the source water used by the industry was relatively less

contaminated.

CSE used European norms because the standards set for pesticide residues by the

Bureau of Indian Standards (BIS) are vague and undefined. The standards say,

__________________________________________________________________55

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________"pesticide residues shall be below detectable limits". This, one would assume, means

that there ought to be no pesticide residues at all in the bottled water. But no, it actually

means that one should not be able to find the pesticide residues in the water. The BIS

has specified the methodology for detecting pesticide residues and this methodology,

which is not very sensitive, does not detect pesticides unless present in extremely high

quantities.

Even for drinking water, the BIS norms specify that pesticide residues should be

"absent". What is plainly absurd is that if drinking water norms specify that pesticides

should not be present, how can packaged drinking water norms be so vague, and use a

non-quantifiable phrase, such as "below detectable limits"? Even going by drinking

water norms, all the bottled water brands tested by the CSE lab would fail the test of

quality.

What was found?

Top seller Bisleri was third from the bottom, with pesticide concentration levels 79

times higher than the stipulated limits (see graph). Kinley had concentration levels 14.6

times above the maximum permissible amounts. Aquaplus — favoured by the Indian

Railways — topped the dubious list, crossing the limit by 104 times!

Contamination levels were significantly lower in packaged natural mineral water

brands Himalayan and Catch from Himachal Pradesh, a state with lower pesticide use.

In the Mumbai region, the worst brand was Oxyrich, with 16.7 times higher pesticide

concentration levels than the prescribed standards. Bisleri and Kinley fared better in the

Mumbai samples – they were ranked 7th and 4th respectively.

The lab also collected raw water from bottling plants to verify its findings. In all cases,

tests showed that the pesticides found in the source water matched the toxins found in

the bottled water — proof that the source of the pesticide residues is contaminated

groundwater. Plants manage to eliminate somewhere between 20 and 80 per cent of the

residues. But no regulations exist to ensure that bottled water plants are set up in clean

groundwater zones.

__________________________________________________________________56

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________The study is important because of the implications for public health. Pesticides ingested

in small quantities over time are known to have severe effects on the human immune

system. What will it take for regulatory bodies to tighten controls? Should the bottled

water industry be allowed to play havoc with public health and breach consumer trust?

15. CASE STUDY

I. ISI 'QUESTION' MARK ON BOTTLED WATER

__________________________________________________________________57


Is the 'ISI' mark of quality issued by the Bureau of Indian Standards (BIS) for

bottled water losing its relevance?

The BIS granted a record 428 fresh licences for manufacturing bottled water in a single

year (2006-07). This is over and above some 1,800 licences that exist in the market

today. This means, there are in excess of 1,800 brands of bottled water across the

country.

In 2005-06, the BIS had granted some 250 licences for bottled water manufacturing. In

the year prior to that, about 179 licences were given by BIS. The rate at which fresh

licences are being issued year after year goes on to prove a few points.

One, that there is a surging demand for bottled water in the country. Two, this is a

result of rising aspirations among consumers who have graduated to bottled water.

And, three, it would be a daunting task for the government to keep tabs on misuse of

the ISI mark or the possibility of fake ISI marks being generated by those who wish to

cash in on the rising demand.

Industry sources indicated that going by the number of existing licences, the total size

of the bottled water market is around Rs 2,000 crore.

Industry experts said it was difficult to comprehend what standards were being

followed by the growing number of manufacturing facilities.

Even though BIS tries its best to keep a vigil, experts feel that the ISI mark is spreading

itself thin across a large number of brands of bottled water, which may further confuse

the consumer.

Bisleri International chairman Ramesh Chauhan, who has a share of around 40% in the

bottled water market, said: "In this industry the cost of entry and the cost of exit is low.

One does not require much equipment to make bottled water."

__________________________________________________________________58

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________BIS records show that while a large number of fresh licences are issued, there are a

number of old licences which expire too. While some of these come up for renewal,

others probably opt for the exit route.

"In a country where just over two decades ago people would frown at the idea of selling

as basic a commodity as water, it is quite astounding that so many bottled water brands

actually thrive today," said an industry observer. Leading brands of bottled water

include, Bisleri, Kinley, Aquafina, Himalayan, among others.

II. BIG PLAYERS KEEN TO GET INTO IN BOTTLED WATER

__________________________________________________________________59

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________In 1998, the branded mineral water market in India had grown to a 424 million litre

business, valued at Rs 4 billion. There were 200 brands available in the country. In their

bid to garner greater market share, many companies, including Parle Bisleri tried to

make quality and the purification processes they used their unique selling proposition

(USP).

In 2000, the branded water market had grown to Rs 7 billion. New players like Pepsi's

Aquafina, Coca-Cola's Kinley and Nestle's Pure Life entered the market. As product

differentiation on the basis of quality became increasingly difficult, with each company

claiming that its brand was safe and pure, companies began to use packaging to

differentiate their products. Bisleri introduced a tamper proof seal in the 500 ml bottle.

However, analysts felt that Bisleri's efforts to reinforce its pure and safe image with a

tamper proof seal may not be all that effective as competitors also had similar tamper

proof sealed bottles. They felt that it was companies with strong distribution channels

that would do well in the long run. Pepsi's Aquafina was strongly placed because it had

the backing of Pepsi's distribution network in the country.

In August 2000, Coca-Cola India launched its bottled water brand, Kinley. Some

analysts said that it would be difficult for Kinley to make a dent in the branded water

market in India because it was already overcrowded and highly competitive.

Commenting on Kinley's launch, Ramesh Chauhan (Chauhan), CEO of Parle Bisleri

Ltd said, "It will be tough for anyone to beat us in this game. We will remain market

leaders.

By 2001, the mineral water market was worth Rs 10 billion and was growing at the rate

of 40% a year. Kinley and Aquafina made inroads into the market and by March 2001,

Kinley had a 10% market share, Aquafina had 4% and the share of Bisleri had come

down to 51%. By June 2001, Bisleri's market share was 47% and Aquafina and Kinley

together accounted for over a third of the market.

In 2001, both Kinley and Aquafina were making huge investments in bottling plants

and distribution. By 2002, Coca-Cola India planned to double the number of water

__________________________________________________________________60

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________bottling plants to 16 and Pepsi announced that it would add seven more plants to the

existing five. In contrast, Bisleri had only 15 bottling plants and three franchisees.

Kinley had 500,000 outlets compared to Bisleri's 350,000.

However, one area in which Bisleri seemed to have an advantage over Kinley and

Aquafina was the bulk segment. In 2000 Bisleri's 5 and 20 litres packs accounted for

20% of its sales. In 2001, the company planned to have 75% of its sales from bulk

packs of 5 and 20 litres.According to analysts the bulk segment had vast potential, and

was expected to grow fast. In 2000, 40% of the branded water consumption was in

eateries, homes and restaurants. Large shops and commercial complexes were fast

emerging as attractive targets for mineral water marketers and Bisleri wanted to be the

first to establish itself in the bulk pack segment.

Bisleri reportedly wanted to focus on the bulk segment because Pepsi and Coca-Cola

seemed to be strong in the retail segment and would take some time to strengthen their

presence in the bulk segment.

16. CONCLUSION

After seeing the different sales trends and market shares graphs, one can easily derive

__________________________________________________________________61

A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________that at present the foreign brands like Kinley & Aquafina are going share equally the

market share and the Indian companies like Bisleri which show a good market share

would surely come down as the modern marketing skills and technologies used by

Coke & Pepsi would cover the large part of the market. According to Health Minister

Mineral water today is not just a status symbol but also a necessity for homes and

offices. With an increasing demand for clean drinking water, more and more

manufacturers of bottled water are joining the lucrative mineral water business. Today

mineral water has become an integrated part of our social life. Mineral water can be

defined as potable water containing the necessary mineral nutrients required by the

body and beneficial to human metabolism.

TURBULENT FUTURE

However, India will face a turbulent water future. Unless water management

practices are changed soon - India will face a severe water crisis within the next two

decades and will have neither the cash to build new infrastructure nor the water needed

by its growing economy and rising population. "India right now, especially with the

technology centers that are being built, will have a real driving force in the global water

business as far as infrastructure, water delivery, membrane filtration and chemical use.

Climate change projections show that India's water problems are only likely to

worsen. With more rain expected to fall in and the rapid melting of glaciers - especially

in the western Himalayas - India will need to gear up to tackle the increasing incidence

of both droughts and floods.

India can still store only relatively small quantities of its fickle rainfall. Whereas

arid rich countries (such as the United States and Australia) have built over 5,000 cubic

meters of water storage per capita, and China can store about 1,000 cubic meters per

capita, India's dams can store only 200 cubic meters per capita. Moreover, India can

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A STUDY ON MINERAL WATER BOTTLES__________________________________________________________________store only about 30 days of rainfall, compared to 900 days in major river basins in arid

areas of developed countries.

__________________________________________________________________63


BIBLIOGRAPHY:

1. Financial Express

2. Business world

WEBSITES:

1. www.google.com

2. www.rediff.com

3. www.search37.com

4. www.yahoo.com

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http://www.yahoo.com/

http://www.search37.com/

http://www.rediff.com/

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